{"id":14626,"date":"2023-07-21T06:31:03","date_gmt":"2023-07-21T06:31:03","guid":{"rendered":"https:\/\/www.theukrules.co.uk\/?page_id=14626"},"modified":"2023-09-19T09:53:08","modified_gmt":"2023-09-19T09:53:08","slug":"setting-up-a-charity","status":"publish","type":"page","link":"https:\/\/www.theukrules.co.uk\/rules\/legal\/community\/charities\/setting-up-a-charity\/","title":{"rendered":"How to Set Up a Charity in United Kingdom | Step by Step Guide"},"content":{"rendered":"<h2>Set Up a Charity in UK<\/h2>\n<div class=\"category-wrapper\">\n<div class=\"list-content\">\n<h5>Table of Contents<\/h5>\n<ul>\n<li><a href=\"#trustees\">Finding New Trustees<\/a><\/li>\n<li><a href=\"#charitable_purposes\">Ensuring Charitable Purposes<\/a><\/li>\n<li><a href=\"#naming_a_charity\">Naming the Charity<\/a><\/li>\n<li><a href=\"#structures\">Choosing a Structure<\/a><\/li>\n<li><a href=\"#governing_document\">Creating a Governing Document<\/a><\/li>\n<li><a href=\"#registration\">Registering as a Charity<\/a><\/li>\n<\/ul><\/div>\n<div class=\"normal-content\">\n<p>We set out the key factors to consider when setting up a new charity in England or Wales. Read on to find out if your organisation will meet the charity test and where to get expert help.<\/p>\n<p>As a general rule, starting up a charitable foundation involves six steps:<\/p>\n<p><strong>Note<\/strong>: The rules for becoming a charity differ in Scotland (review the <a href=\"https:\/\/www.oscr.org.uk\/becoming-a-charity\/\" target=\"_blank\" rel=\"noreferrer noopener\">Office of the Scottish Charity Regulator<\/a>) and in Northern Ireland (according to <a href=\"https:\/\/www.charitycommissionni.org.uk\/start-up-a-charity\" target=\"_blank\" rel=\"noreferrer noopener\">The Charity Commission for Northern Ireland<\/a>).<\/p>\n<\/p><\/div>\n<\/div>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2>Charities and Tax Relief<\/h2>\n<p>Having set up a charity, you may qualify to get certain tax reliefs. But, you would need to <a href=\"\/rules\/business\/tax\/charities-and-taxation\/\">get recognition for tax purposes<\/a> by HM Revenue and Customs (HMRC) to benefit from the incentives.<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2 id=\"trustees\">1. Finding New Trustees (CC30)<\/h2>\n<p>In most cases, the first step will be to find trustees for your charity (usually 3 as a minimum). The Charity Commission can advise charities on how to recruit trustees, select the right ones for appointment, and then induct them.<\/p>\n<p><strong>Note<\/strong>: The guidance notes &#8216;<a href=\"https:\/\/www.gov.uk\/government\/publications\/finding-new-trustees-cc30\" target=\"_blank\" rel=\"noreferrer noopener\">finding new trustees CC30<\/a>&#8216; answers many of most common questions. It also sets out a framework for the trustee recruitment process.<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2 id=\"charitable_purposes\">2. Charitable Purposes for Public Benefit<\/h2>\n<p>The &#8216;charitable purposes&#8217; of a charity must help the public in some way (e.g. for public benefit) and may include things that contribute to:<\/p>\n<ul>\n<li>Amateur sport<\/li>\n<li>Animal welfare<\/li>\n<li>Citizenship or community development<\/li>\n<li>Education<\/li>\n<li>Health<\/li>\n<li>Human rights<\/li>\n<li>Relieving poverty<\/li>\n<li>Religion (including religious or racial harmony)<\/li>\n<li>Saving lives<\/li>\n<li>The arts<\/li>\n<li>The efficiency of the armed forces, police, fire, or ambulance services<\/li>\n<li>The protection of the environment<\/li>\n<\/ul>\n<div class=\"content-inner-block\">\n<p><strong>Note<\/strong>: The Charity Commission produces a step by step guide that explains <a href=\"https:\/\/www.gov.uk\/guidance\/how-to-write-charitable-purposes\" target=\"_blank\" rel=\"noreferrer noopener\">how to write charitable purposes<\/a> with further information about <a href=\"https:\/\/www.gov.uk\/guidance\/public-benefit-rules-for-charities\" target=\"_blank\" rel=\"noreferrer noopener\">public benefit rules for charities<\/a> and suitable aims.<\/p>\n<\/div>\n<p><\/p>\n<hr>\n<p><\/p>\n<p><strong>Note<\/strong>: United Kingdom law does not allow the setting up of a charity to help only &#8216;one&#8217; specific person!<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2 id=\"naming_a_charity\">3. Naming Your Charity<\/h2>\n<p>The name of your charity must not:<\/p>\n<ul>\n<li>Be similar to the name of any existing charity (unless you are able to prove that you need to use it).<\/li>\n<li>Be misleading (e.g. suggests that your charity does something that it does not).<\/li>\n<li>Use <a href=\"\/rules\/lifestyle\/writing\/acronyms\/\">acronyms<\/a> or offensive words.<\/li>\n<li>Use any words that you do not have permission to use (e.g. a <a href=\"\/rules\/business\/intellectual-property\/trade-marks\/\">trade mark<\/a>).<\/li>\n<\/ul>\n<p>You can <a href=\"\/rules\/legal\/community\/charities\/\">search the charity register<\/a> to check names already registered as charities in the United Kingdom. But, it will not disclose information on any unregistered charities.<\/p>\n<h3>Additional Names You Can Use:<\/h3>\n<ul>\n<li>Abbreviations (e.g. NSPCC is the National Society for the Prevention of Cruelty to Children).<\/li>\n<li>Alternative names (e.g. Comic Relief is a working name for Charity Projects).<\/li>\n<\/ul>\n<p>You would need to list any alternative or working names used by your charity when you apply for the registration.<\/p>\n<h3>Using Non-English Names<\/h3>\n<p>You can use non-English words in a charity&#8217;s name. But, you would need to include a translation of any used when you register the name.<\/p>\n<h3>Using the Word &#8216;Charity&#8217; in the Name<\/h3>\n<p>The rules allow the use of &#8216;charity&#8217;, &#8216;charities&#8217;, or &#8216;charitable&#8217; when naming a charity. But, the Charity Commission must approve it if you register it as a company name with Companies House.<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2 id=\"structures\">4. Charity Structures UK<\/h2>\n<p>There are four common types of charity structures. It is important to <a href=\"https:\/\/www.gov.uk\/guidance\/charity-types-how-to-choose-a-structure\" target=\"_blank\" rel=\"noreferrer noopener\">choose a structure for your charity<\/a> that matches the aims because it will affect:<\/p>\n<ul>\n<li>Who will be running the charity and how they run it.<\/li>\n<li>What the charity is allowed to do (e.g. employ people or own property).<\/li>\n<\/ul>\n<h3>Charitable Company<\/h3>\n<p>Charitable companies must be limited by guarantees when you register (not shares). So, you would need to select &#8216;private company limited by guarantee&#8217; on the form. The fee for registration is \u00a340.<\/p>\n<p><strong>Note<\/strong>: The trustees would have limited liability (or none) for debts or liabilities of a charitable company.<\/p>\n<h3>Application to Register a Company<\/h3>\n<p>Use <a href=\"https:\/\/assets.publishing.service.gov.uk\/government\/uploads\/system\/uploads\/attachment_data\/file\/554915\/IN01_V7.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Form IN01<\/a> to register a charitable company with Companies House. In some cases, you may also need to use continuation pages if you need extra space to write. Use form IN01c if you need the Welsh version.<\/p>\n<h3>Charitable Incorporated Organisation (CIO)<\/h3>\n<p>You would create this kind of incorporated structure designed for charities by registering it with the Charity Commission (not Companies House).<\/p>\n<p><strong>Note<\/strong>: The trustees would have limited liability (or none) for debts or liabilities of a charitable incorporated organisation.<\/p>\n<h3>Charitable Trust<\/h3>\n<p>This type of charity structure creates a way for the trustees (a group of people) to manage assets. The assets can be investments, money, land, or buildings.<\/p>\n<h3>Unincorporated Charitable Association<\/h3>\n<p>The rules do not allow unincorporated charitable associations to employ staff or to own premises. But, it is an uncomplicated way for a group of volunteers to set up and run a charity for a common purpose<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2 id=\"governing_document\">5. Governing Document<\/h2>\n<p>You can consider the &#8216;governing document&#8217; as a rulebook for the charity. The main purpose of a governing document is to explain how the charity will be run. It allows the trustees and other interested parties to determine:<\/p>\n<ul>\n<li>The purpose of the charitable organisation<\/li>\n<li>Who runs it and how they are running it<\/li>\n<li>The way that trustees are appointed<\/li>\n<li>The rules on expenses and payments for trustees<\/li>\n<li>How to close down the charity<\/li>\n<\/ul>\n<p>The structure of your charity will determine the type of governing document that you need. Guidance notes <a href=\"https:\/\/www.gov.uk\/guidance\/how-to-write-your-charitys-governing-document\" target=\"_blank\" rel=\"noreferrer noopener\">CC22b<\/a> explain how to set out its purposes and how to write rules in the governing document (including templates).<\/p>\n<p>Trustees of the charity must meet together to sign the governing document. Setting up a charitable trust means you would also need an independent witness.<\/p>\n<p><strong>Note<\/strong>: You can use your own templates to create your own governing document. But, doing so can delay the registration process.<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<h2 id=\"registration\">6. Registering a Charity<\/h2>\n<p>You will need to <a href=\"https:\/\/apps.charitycommission.gov.uk\/outreach\/RegistrationLanding.ofml\" target=\"_blank\" rel=\"noreferrer noopener\">apply to register a charity<\/a> if yours:<\/p>\n<ul>\n<li>Has an income of \u00a35,000 per year (or more) or structured as a charitable incorporated organisation.<\/li>\n<li>Is based in England or Wales (the rules differ in Scotland and in Northern Ireland).<\/li>\n<\/ul>\n<p><\/p>\n<h3>Supporting Documentation<\/h3>\n<p>During the application process the Charity Commission will ask about the charitable purposes of your charity, and:<\/p>\n<ul>\n<li>How you will run the charity for public benefit.<\/li>\n<li>Evidence showing an annual income above \u00a35,000 (unless yours is a CIO).<\/li>\n<\/ul>\n<p>Other information and documents that you will need to supply include your charity&#8217;s name, and:<\/p>\n<ul>\n<li>Bank or building society details<\/li>\n<li>Most recent accounts<\/li>\n<li>Contact details (must include a postal address)<\/li>\n<li>Trustee names, dates of birth, and contact details<\/li>\n<li>A copy of the governing document (in PDF format)<\/li>\n<\/ul>\n<p><\/p>\n<h3>Providing Proof of Income<\/h3>\n<p>Proof of income is not always needed, but when it is you can use:<\/p>\n<ul>\n<li>The latest &#8216;published&#8217; annual accounts (in PDF format). An independent examiner or auditor must have approved them as proof of income.<\/li>\n<li>A scanned image of a recent bank statement or formal offer of funding from a recognised funding body.<\/li>\n<\/ul>\n<p><strong>Note<\/strong>: The <a href=\"\/rules\/legal\/community\/charities\/\">laws and regulations of charities<\/a> vary. Even so, the funds of charitable organisations must not profit entities or any individual persons.<\/p>\n<p><\/p>\n<hr>\n<p><\/p>\n<div class=\"updated-data\"><strong>Setting Up a Charity in United Kingdom<\/strong><br \/>\n<time datetime=\"2022-01-01\">Last Updated 2022<\/time><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Set Up a Charity in UK Table of Contents Finding New Trustees Ensuring Charitable Purposes Naming the Charity Choosing a Structure Creating a Governing Document Registering as a Charity We set out the key factors to consider when setting up a new charity in England or Wales. Read on to find out if your organisation&hellip; <a class=\"more-link\" href=\"https:\/\/www.theukrules.co.uk\/rules\/legal\/community\/charities\/setting-up-a-charity\/\">Continue reading <span class=\"screen-reader-text\">How to Set Up a Charity in United Kingdom | Step by Step Guide<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"parent":2606,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Set Up a Charity in United Kingdom | Step by Step Guide - UK Rules<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.theukrules.co.uk\/rules\/legal\/community\/charities\/setting-up-a-charity\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Set Up a Charity in United Kingdom | Step by Step Guide - UK Rules\" \/>\n<meta property=\"og:description\" content=\"Set Up a Charity in UK Table of Contents Finding New Trustees Ensuring Charitable Purposes Naming the Charity Choosing a Structure Creating a Governing Document Registering as a Charity We set out the key factors to consider when setting up a new charity in England or Wales. 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