Legal structures

Legal structures

Advantages and disadvantages of different legal structures for CLH groups

Legal add-ons

Two additional legal statuses a group might wish to access are below. These might be sought to achieve additional funding or/and public recognition.

Charity status

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.