Closing down: What to do if you have contractual liabilities

You should review all contractual liabilities your organisation currently has and consider the specific terms. Check for any penalties for early termination, break clauses, dates or notice periods and the wider process for cancellation.

Issues to consider include:

• property leases and rental agreement
• rental of equipment like telephones
• servers or photocopiers
• ongoing services like cleaning
• waste disposal
• water treatment
• PAT testing.

Always speak to the service provider. Many organisations may have standard terms issued to all organisations but be willing to be more flexible for charities and voluntary organisations which are closing. Explain your circumstances and be proactive in seeking an exemption.

Always explain that trustees are volunteers and are not like directors of a company with a personal benefit.

If the supplier is willing to be more flexible and offer any cost savings, always seek confirmation of this in writing.