Having the structure to apply for funding

How to get funding for peer support

There are many different routes you can take to get funding.

For the purposes of this guide, we're going explain how to create a structure that suits you, and how to open a bank account.

Please note, all funders, banks and building societies are different, so this is just a guide.  

Groups can be structured in the following ways.

Independent community group

This has no formal structure. Remaining as an independent community group with no formal structure is attractive to many people who might be put off by registration or bureaucracy.

Remaining small and independent can work well for many peer support groups where people are simply aiming to support each other with no pressing needs for expansion or funding.

It can still be useful to have a bank account with more than one signatory in case you get some funds or collect contributions from members.

Unincorporated association

This has a simple structure, like a constitution, with no legal status.

An unincorporated association is a group of people gathering together under a formal agreement, which does not include making money for themselves (this is often termed ‘not-for-profit’). This will make you eligible for more funding opportunities, and it's not too difficult to achieve.

All you need to do to achieve this status is to write a constitution. A constitution is a written agreement of the aims of the group and what everyone participating will or won’t do. It might include ground rules like listening to other people and treating each other with respect.

You can write the constitution together with your group. This is all you need for your group to become an unincorporated association.

For more information on writing a constitution, and forming an unincorporated association, see the following resources:

• The Resource Centre has a guide and resources on how to form your group as an unincorporated association
• More information on writing a constitution 
• Information on unincorporated associations

Charity or social enterprise

This is a more detailed, formal structure, with legal status.

You may want to move beyond being an unincorporated association and become a social enterprise or registered charity.

This might be because you want to apply for funding which needs you to be a registered charity or social enterprise. Or because you want to grow your group into a larger organisation with more ambitious aims.

The key difference between a charity and a social enterprise is how they finance themselves. Charities rely on donations and fundraising, while social enterprises usually generate income by trading, or selling, services or materials.

‘Charity’ is an umbrella term, encompassing several different types of charitable organisation. These charitable organisations all exist to benefit the public, or other people.

‘Public benefit’ can apply to the members of your group. There are 13 categories of charitable purpose listed on the charity commission website (such as animal welfare, relieving poverty, or promoting education).

To find out more about setting up a charity, see the following:

• Simple Guide to Setting up a Charity – the Small Charities Coalition
• Step by Step guide to setting up a charity

Social enterprises usually take the form of a community interest company (CIC). This is essentially a business that prioritises benefit to the community over making money for individuals. A CIC needs to demonstrate that it benefits the community that it exists to serve.

To register a new CIC, you have to apply to Companies House to register a company, and include with your application form CIC36, which you will use to describe how your company will benefit the community.

For more information on social enterprises, see:

• Step by Step guide to becoming a community interest company
• The Resource Centre: community interest company
• Choosing the right organisational structure for your group

Find out more about the different structures at:

• Legal structures for community groups and not-for-profit organisations
• Resource Centre

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