Starting a charity can be an incredibly rewarding endeavour, providing a way to support causes close to our hearts.
At Slater Heelis, our corporate lawyers, who have great experience in charity law, have guided numerous clients through this process, ensuring their vision for change is realised efficiently and effectively.
This guide outlines the critical steps involved in setting up a registered charity and shows how our team can support you at each stage.
How To Set Up A Charity
Step 1: Decide Who Will Be Involved
A charity’s strength lies in its governance. Trustees play a crucial role in steering the charity towards its mission and ensuring compliance with legal obligations.
You will need at least three trustees to begin. Selecting individuals who bring diverse skills, experiences, and perspectives can significantly benefit your charity. Our team can help you understand the responsibilities involved and assist in structuring your board effectively.
Step 2: Choose A Structure
The structure of your charity determines many factors, including governance, liability, and regulatory obligations.
Common structures include:
- Charitable Incorporated Organisation (CIO): Suitable for those who prefer a structure that can enter contracts and hold property in its own name without trustees having to incur personal liabilities.
- Charitable Company (limited by guarantee): Ideal for charities that might undertake significant commercial activities.
- Unincorporated Association or Trust: These are simpler and less costly but might not be suitable if your charity will hold substantial assets or enter into contracts.
Our legal team can guide you through choosing the most appropriate structure, tailored to your charity’s needs and goals.
Step 3: Name Your Charity
The name of your charity is its first impression. It should be distinctive and reflect the charity’s aims. It must not be misleading or similar to another charity’s name. Our team can help you check existing names and ensure your chosen name meets all regulatory criteria.
Step 4: Consider Why You Are Setting Up A Charity
Your charity must have explicit purposes that qualify as beneficial to the public. This involves supporting causes such as education, religion, community development, and more. These purposes should align with the definitions set by the government. We assist in clarifying your objectives and ensuring they meet the legal standards required for charitable status.
Step 5: Formalise & Register Your Charity
Creating a Governing Document
Your charity’s governing document is a legal requirement. It outlines how the charity is run, including the powers of trustees, the operational framework, and the procedures for handling funds. The complexity of this document can vary based on your chosen structure. Our team specialises in crafting clear, comprehensive governing documents that meet all legal stipulations.
Registering Your Charity
If your charity’s annual income exceeds £5,000, or if you opt to set up a CIO, registration with the Charity Commission is mandatory. Registration confirms your charity’s credibility and allows it to benefit from various tax reliefs. We can manage the registration process for you, ensuring all criteria are met and the process runs smoothly.
How We Can Help
At Slater Heelis, we believe in empowering our clients by making the legal aspects of setting up a charity transparent and straightforward. We provide bespoke advice on each step —from the initial concept to registration and beyond.
Our team is committed to ensuring that your charitable aspirations are built on a solid legal foundation, enabling you to focus on what matters most: making a positive difference.
Setting up a charity involves careful consideration and significant dedication, but you do not need to do it alone. By partnering with our experienced charity law solicitors, you ensure that every step in your setup is handled with expertise and care.
To find out more about how we can assist you with setting up a registered charity foundation, please get in touch with us through our online contact form, or by calling us on 0330 111 3131.