When a "business" is essentially a non-profit?

Hi folks, I'm a little confused. I have a passion/concern for a certain issue and would like to setup, call it a pressure group, seek donations, be pro-active etc etc. Pressure group is the wrong word, it would be an organisation which monitors rights abuses, discrimination etc for a specific ethnic group in Europe - I'll refrain from saying which one, not Roma, Blacks, Jews, Muslims, as may be the first ideas to jump into peoples heads. I have looked at premises for an office, worked out prices, must do's and all that - even though nothing may come of this - have had a little experience of running an online business in the past and of activism in general. I do have savings which I am prepared to dip into.

Anyway, I would like the legal bits and bobs, bells and whistles that registering would give. Can I register as a Sole Trader with Revenue and register a business name with the CRO if my "business" is essentially voluntary? I would seek donations and initially that would go to finance running costs, expenses etc, if donations were large enough I would make it f/t and then take a salary (you cannot do this if you register as limited by guarantee but I would, if it is possible, be registering as a sole trader) Can I do this? Maybe it isn't even possible. Perhaps I wouldn't even have to register at all? I'm unsure.

Can I register as a sole trader and call my "business", for example, the "Centre for Protection of blah and blah in blah"? May sound like a crazy lunatic I know. Can this be done, I mean, from a legal perspective I don't think there are any impediments are there?

Should add, I am currently on a disability allowance, a couple of health issues, that said I do keep focused by studying for a degree - which I pay for. Anyway, I wonder how would Social Welfare look on it if I suddenly became a sole trader but had no income? How would revenue look on it? Or had income that went to running my "business"? Or if donations were good and had money build up in a bank a/c but that was for the "business" and not a salary? Any ideas? Is it rather complicated? Thank you.

You are asking a lot of questions here. I'm attaching an overview here which may be of use.

The second point I would add is that charities legislation is changing very soon. Currently the only regulator of charities is the Revenue (by default). This is due to change and charities are going to become regulated. This will be greatly increasing the expense of establishing and running a charity.

First of all, what you are proposing is not a business. A business is something which provides a service or a product with a view to making a profit.

You can start tomorrow and set up the Protect the Lilies campaign. You can spend your money on it if you wish. You can seek donations if you wish. The only legal requirement is that you must register the name with the Company Registration Office which is a very simple and cheap process. Revenue will have no interest in this, assuming that the donations don't massively exceed the expenditure and that you do not draw an income from it yourself.

You do not need to worry about charitable status at this stage. When your campaign is up and running and you are being flooded with donations, then you may consider applying for it.

So, this is the way to start. Start your campaign as an individual and see how it goes. If it goes well, and you want to move it up a gear, then you may seek to set up a group. You can do that in time. The next stage after that would be to set up a company. But there is little advantage in that, and huge disadvantages.

I don't know the implications for Social Welfare. Presumably you must meet some test that you are unfit for work. If you are working at this, even if you are not earning any income from it, then you presumably would be judged fit for work, and your disability allowance would be discontinued. Of course, if you are getting an income from your work, then your disability allowance would also be discontinued.

dublin66 said:

You are asking a lot of questions. I'm attaching an overview here which may be of use.

The second point I would add is that charities legislation is changing very soon. Currently the only regulator of charities is the Revenue (by default). This is due to change and charities are going to become regulated. This will be greatly increasing the expense of establishing and running a charity.

Click to expand...

Thanks for the info, Dublin66. Will take a closer look at it when I'm more awake. Sorry foe the delay in responding, 101 things happening lately. But might make sense to start asap if new, and costly, legislation is being introduced, unless such legislation is retrospective then it won't matter. Thanks again.

Brendan Burgess said:

First of all, what you are proposing is not a business. A business is something which provides a service or a product with a view to making a profit.

You can start tomorrow and set up the Protect the Lilies campaign. You can spend your money on it if you wish. You can seek donations if you wish. The only legal requirement is that you must register the name with the Company Registration Office which is a very simple and cheap process. Revenue will have no interest in this, assuming that the donations don't massively exceed the expenditure and that you do not draw an income from it yourself.

You do not need to worry about charitable status at this stage. When your campaign is up and running and you are being flooded with donations, then you may consider applying for it.

So, this is the way to start. Start your campaign as an individual and see how it goes. If it goes well, and you want to move it up a gear, then you may seek to set up a group. You can do that in time. The next stage after that would be to set up a company. But there is little advantage in that, and huge disadvantages.

I don't know the implications for Social Welfare. Presumably you must meet some test that you are unfit for work. If you are working at this, even if you are not earning any income from it, then you presumably would be judged fit for work, and your disability allowance would be discontinued. Of course, if you are getting an income from your work, then your disability allowance would also be discontinued.

Click to expand...

Thanks, Brendan. Your name sounds familiar somehow? Anyway, it's good to know there are no major loops to jump through, that's good. No, I wouldn't be taking a salary, unless donations allowed it, realistically that may never happen of course. Donations would be used to offset running costs, running a campaign, advertising etc etc.

Yeah, the Disability Allowance thingie is a bit of a pickle alright. That said, if I am not drawing a salary, I wonder am I working? I guess I would be volunteering and not sure if that technically counts as working? Is volunteering working? I'm not sure tbh. Guess it would be like setting up a club, The Corgi and Yorkie Appreciation Society of Connacht, for example, lol. Thanks for the information, will see if this ever even gets off the ground!

EDIT: Yes, I knew the name sounded familiar, lol. Thanks.