The following factors are guidelines to help you choose a structure for your organisation.

Size, capacity and complexity of your organisation – Large organisations with big programmes and budgets will usually set up a non-profit company. Smaller organisations will usually set up a trust or voluntary association.

Funder’s needs – People funding the organisation, for example, overseas funders or government may prefer a particular structure. For example, corporate (business) funders usually prefer organisations to be non-profit companies.

Paying tax – It doesn’t matter which structure you choose. This does not affect the amount of tax your organisation might have to pay. The factors that influence your tax status are the purpose, objectives and activities of the organisation.

Registering with a government registry – Only non-profit companies and trusts have to register with a government registry. The advantages of doing this include:

• There are rules and regulations which organisations have to follow if they are registered, this helps to make things clear to those inside and outside the organisation
• Organisations have to be accountable to the public which means all stakeholders, for example, donors, people benefiting from the organisation’s work, the general public and the government are aware of how money is being spent by the organisation