How Do I Set Up a Charity?

Your Guide To Setting Up A Charity

There are many reasons for setting up a charity – it can be a great way to honour a loved one’s memory to ensure their name lives on and that you’re able to do some good in the process. Or you might want to help those in need in society or to educate, to protect animals or the environment, or to save lives.

Whatever your reason for setting up a charity, our specialist solicitors are here to help and guide you through the incorporation process.

What Is A Charity?

In England and Wales, a charity is defined as an organisation with so-called charitable purposes that is subject to the High Court’s charity law jurisdiction.

To set up a charity, the ambitions need to be clearly defined. The Charities Act 2011 states that the declared purposes must fall within the 13 descriptions of purposes stated in law and be for the benefit of the public.

The Charities Act 2006 states that a registered charity must have an annual income of at least £5,000 to be incorporated.

To achieve charitable status, you need to seek and gain approval from the Charity Commission of England and Wales to set up the organisation.

How Do You Set Up A Charity?

The process is lengthy and complicated, and can take months or even years to complete.

Gaining approval for charitable status from the Charity Commission is not straightforward and you’ll need to provide a great deal of evidence even after the application has been submitted.

As a guide, to set up a charity, you will need to:

• Complete the application form
• Complete governing details for the charity
• Complete the trustee forms and sign them
• Provide supporting documentation for evidence
• Respond to any queries the Charity Commission might have

Your solicitor will be able to help with the application forms as well as with liaising with the Charity Commission following the submission.

Is Setting Up A Charity Right For You?

Before you set up a charity, make sure you consider all your options and complete your research first.

Check if any charities already exist with similar purposes to yours as it might be better to work together than to create a whole new charity with the same goals.

There are strict laws you need to follow with charities, including providing up-to-date information on the work your charity is doing and its finances. It may be too restrictive for what you want to do.

There are alternative structures to set up a charity, including a social enterprise and a named fund or trust.

Charity Structure Types

The 4 main charity structures are:

• Charitable incorporated organisation (CIO)
• Charitable company (limited by guarantee)
• Unincorporated association
• Trust

Other structures that are a good alternative to setting up a charity include a community interest company (CIC) which is a company created to help the public but is not a charity.

Choosing the right structure for your charity will depend on your aims for the charity and which option will benefit your goals most.

Helping You To Set Up A Charity

Our specialist charity solicitors have the experience and understanding of this complex area of law to guide you through the process in the most straightforward and beneficial way possible.

It’s important to research the different types of charity and non-charity structures, to establish which one is right for what you want to do and the purposes of your proposed organisation.

We can help you choose the right charity structure and apply on your behalf to the Charity Commission as well as support you throughout the process and handle any queries regarding your application.

To speak to one of our professional solicitors about setting up a charity, please contact us at our Chorlton office on 0161 860 7123 or email chorlton@hlfberry.com or at our Failsworth office on 0161 681 4005 or email failsworth@hlfberry.com