[Foundation-l] Wikimedia UK v2.0

Fri Aug 29 15:11:22 UTC 2008

On Fri, Aug 29, 2008 at 6:20 AM, Alison Wheeler <wikimedia at alisonwheeler.com
> wrote:

> On Fri, August 29, 2008 01:03, Thomas Dalton wrote:
> > At the moment, however, a
> > company limited by guarantee is pretty much the only option that
> > protects the board.
>
> The issue is not so much one of protecting the Board (though that is, of
> course, a good thing!) but that with a non-incorporated body all monies
> are deemed to be the personal assets of those involved (bad for tax) and
> hence people - especially possible large donors - will not give money as
> it has no 'independence'. A 'Body corporate' is the only way to protect
> funds with proper disclosure and financial security (and Directors are
> personally liable if company funds are misused too).
>

Assuming the organization has a need to hold assets and collect funds for
non-immediate use in the first place.