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Charities – Schools – Clubs

Charities, Schools & Clubs – How we can help

The insolvency for a charity, school or club happens more often that you would think.

Charities, schools or clubs are usually run by a board of Trustees or Governors with the day to day running being handed over to an employed management team including a chief executive. The entity may also have a list of paying members and typically, they would do so if it was a sports or social club.

If the entity is a limited company and it is facing insolvency (and cannot be saved) it can be closed and put into creditors voluntary liquidation. The input of the Charity Commissioner is not usually required, and the Trustees can decide to liquidate for themselves. A licensed insolvency practitioner will need to be found to be the liquidator.

Often the risk of the financial situation getting worse forces the Trustees to act as continuing to allow the position to get worse can lead to personal liability of the trustees for the debts.

If the charity, school or club is not a limited company then a careful review will have to be made of the constitution and members may find to their surprise they are collectively personally liable for all the debts.

One normal way to turnaround a charity and avoid insolvency is to find another charity to merge with or perhaps borrow against a freehold property to keep going for a short period whilst the property is sold. All debts could then be repaid. The charity is then wound up and any remaining surplus paid to the Charity Commission. We have contacts who can provide short term secured lending.

We have helped several Charities, Schools, Clubs and Organisations through and avoid the insolvency process. Acting sooner rather than later is always best as the longer it is left the more likelihood of the trustees incurring a personal liability for the debts.

Find the answers to some of the most common questions asked by charities, schools and clubs here.


For an initial free consultation regarding Administration or to find out more about our related services, please contact us to find out more.

With 25 years' experience of dealing with insolvency
we know its important for us to put you first.
Find out how we
can help you

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