A Supporters’ Trust is a democratic, not-for-profit organisation dedicated to giving fans a stronger voice in their football club’s decision-making and fostering closer ties between the club and its community.
Supporters’ Trusts operate as Community Benefit Societies (CBS), a type of co-operative governed by the one-member, one-vote principle. They are regulated under the Co-operative and Community Benefit Societies Act 2014.
CBSs are registered with the Financial Conduct Authority (FCA), and any rule changes must be approved by members before being submitted to the FCA for final approval, ensuring they align with the organisation’s core principles.
All assets and liabilities are collectively owned by the members.
To remain legally operational, a Trust must remain solvent under FCA regulations. As non-profit entities, Trusts do not distribute dividends; instead, any profits are retained as reserves or reinvested to further the Trust’s objectives.
How Does the Glovers Trust Differ from a Supporters’ Club?
The Glovers Trust is fundamentally different from a traditional supporters’ club in both its organisation and approach.
We Are:
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A legally recognised entity, regulated by the Financial Conduct Authority (FCA).
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Able to raise and hold funds, as well as own assets, in our own name.
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Required to maintain audited accounts to ensure that members’ funds are properly managed and accounted for.
A typical supporters’ club would find it legally challenging to achieve any of the above.
Structure and Legal Protection
The Glovers Trust is established as a Community Benefit Society (CBS), allowing it to own assets corporately rather than them being the personal property of a chairman or treasurer. In addition, members benefit from limited liability, meaning they cannot be required to contribute more than they have already paid in subscriptions, even if something were to go wrong.
As a CBS, the Trust’s Board Members have a legal duty to act responsibly and manage members’ funds with care. If any Board Member were to misuse this responsibility, they could face legal consequences. Any money received by the Glovers Trust, whether through membership fees or donations, can only be used in accordance with our constitution.
Accountability and Transparency
The Trust is legally required to comply with the Co-operative and Community Benefit Societies Act 2014 and the regulations of the FCA. This means we must:
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Maintain audited accounts.
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Hold democratic elections for our Board.
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Conduct an Annual General Meeting (AGM).
These measures ensure that members can have full confidence in how funds are managed. They also guarantee transparency, allowing members to hold Board Members accountable for their actions, remove them if necessary, or even pursue legal action should the need arise.
Picture Courtesy of Gary Brown