Reorganising Governance to Unlock Charitable Funding

Introduction

Seagulls Lowencroft is a theatre providing a varied programme of arts and performance events for its local community in Sullfork. Alongside commercially‑focused mainstream performances, the organisation delivers arts courses, classes and opportunities for less well‑known acts serving more niche interests. Incorporated as a Community Interest Company (CIC), the theatre wanted to explore whether restructuring to make greater use of charitable status would strengthen its appeal to funders.

Central Support Offer – Identifying the Need

Seagulls Lowencroft had previously established a charitable company but had never used it in practice. With a Board of five Directors and limited experience of charity governance, the theatre needed clear support to understand:

• Whether charity status was appropriate for its activities
• The legal and governance implications of different structural options
• How to manage commercial income alongside charitable objectives
• The responsibilities trustees would hold compared to CIC Directors

The Intervention

Through the YIF Central Support Offer, the theatre received governance and structural advice from PG Collective.

PG Collective is a values‑led consultancy supporting charities, community organisations and social purpose ventures through periods of transition and change. They provide practical, plain‑English support across governance, organisational development and strategy, helping organisations strengthen foundations while staying true to their purpose.

PG Collective worked with the CIC’s lead officer to fully understand the organisation’s activity, governance and ambitions. Following this, they identified three structural options:

1. Transferring clearly charitable activity to the existing charity
2. Running all activity through the charity except the centre bar
3. Converting the CIC into a charitable company and operating entirely through that structure

Given that the organisation’s work was overwhelmingly charitable, PG Collective recommended the third option as the simplest and least disruptive. This avoided the need to change leases, undertake TUPE processes, or create parallel governance and accounting systems.

The advice also clearly highlighted that if non‑charitable trading income (primarily the bar) exceeded the lower of 25% of turnover or £80,000 per year, a subsidiary would be required.

PG Collective provided a concise but detailed written report, setting out options, implications and next steps in an accessible format for the Board.

The Result and Impact

As a result of the support, the Board is actively considering the recommendations and developing a clearer understanding of the legal responsibilities of charity trustees compared to their existing CIC roles. Seagulls Lowencroft is now better equipped to take a strategic, informed decision that aligns structure, mission and funding ambitions.

Additional Benefits

The support helped the organisation to:

• Clarify how its activities align with charitable purposes
• Weigh the benefits of charity status against regulatory requirements
• Keep future structural options open
• Approach governance change with greater confidence and clarity

What They Said

“The support we received was especially helpful for us as a small organisation with limited experience in charity governance. We received a detailed but concise report which provided our Board of Directors with a clear set of options and necessary next steps, which was written in an accessible style whilst still providing the detail needed for reassurance.”
 Director of the Theatre