Advantages and disadvantages of different legal structures for CLH groups
Two additional legal statuses a group might wish to access are below. These might be sought to achieve additional funding or/and public recognition.
An organisation has to pass two tests in order to qualify for charitable status:
- It has to have a charitable purpose (housing is not one, but the relief of people in need is)
- It has to exist for public benefit
Community land trust status
This is established for the express purpose of furthering the social, economic and environmental interests of a local community by acquiring and managing land and other assets in order to:
- Provide a benefit to the local community
- Ensure that the assets aren’t sold or developed except in a manner which the trust’s members think benefits the local community
It is established under arrangements which are expressly designed to ensure that:
- Any profits will be used to benefit the local community
- Membership is open to the community
- The members control it
Further information on legal structures is available here.