There are over 150,000 registered charities in the UK with many new charities set up on a regular basis. You may find that there is already a charity set up to do what you have in mind, and you can find details about all registered charities on the Charity Commission’s website.
However, if you do want to set up a charity of your own, it is possible to do this. Our guide explains how.
Can my organisation be classified as a charity?
In order for your organisation to be a charity, it must exist for the public benefit and it has to be set up wholly and exclusively to carry out charitable work. There are lots of different types of charity, including:
- Advancement of amateur sport
- Advancement of religion
- Poverty relief
- Needs related to disability and ill health
- Advancement of arts
If you’re not sure whether your activity counts as ‘charitable’, you should seek advice from a solicitor or, alternatively, consult the Charity Commission’s online advice.
What types of organisation can I set up?
There are two main types of organisation that you can set up:
- A charitable trust – this is a good way of ensuring money is dedicated to a particular purpose
- A corporate body – established as a company which offers protection to the trustees and members of the charity who benefit from limited liability
If the charity is going to act like a business – borrowing money, fund raise, employ staff – it would be sensible to set up a corporate body that can do all this in its own right.
How do I set up a charitable company?
Firstly, you will need to draft a constitution which, in the case of a company, means ‘articles of association’. This sets out your charity’s objectives and information about how your organisation will be run.
You can seek legal advice to help you with this or, alternatively, there are some sample constitutions on the Charity Commission website.
You will need to consider issues such as your charity name, how you will fund the charity, whether it will employ any staff and whether you will have offices.
How do I register with the Charity Commission?
If your charity is likely to have an income exceeding £5,000 and is based in England or Wales you will probably have to register with the Charity Commission. You have to complete the appropriate forms (downloadable from the Charity Commission website) and undergo scrutiny from the registration team.
It may take two months or more to register.
What else should I be aware of?
You should bear in mind that your charity will require trustees and these people will have to have a good understanding of their duties. For example, you always have to ensure that you comply with your charity’s objectives and are achieving the level of public benefit required.
Setting up a charity can be hugely satisfying and can offer great benefits. Follow our step by step guide above and you can begin undertaking your charitable work in just a few months.
