Setting up a charity in the UK involves several steps to ensure compliance with legal regulations and to establish the organisation’s structure and purpose.
Here’s a general outline of the process:
Decide on the charitable purpose: Determine the purpose of your charity. It should be for the public benefit and fall under one of the charitable purposes outlined by law, such as relieving poverty, advancing education, or promoting health.
Choose a name: Select a name for your charity that reflects its purpose and is not already in use by another charity. You can check the Charity Commission’s online register to see if your desired name is available.
Recruit trustees: You’ll need at least three trustees to set up a charity. Trustees are responsible for running the charity, making decisions, and ensuring compliance with legal requirements. Choose individuals who are committed to the charity’s cause and have the skills and experience necessary to fulfil their duties.
Draft a governing document: Prepare a governing document, such as a constitution or trust deed, which sets out the charity’s purpose, how it will be run, and the powers and responsibilities of the trustees. You may want to seek legal advice to ensure the document meets legal requirements and accurately reflects your charity’s intentions.
Register with the Charity Commission: Most charities in England and Wales with an income over £5,000 per year must register with the Charity Commission. You can apply for registration online through the Charity Commission’s website. As part of the registration process, you’ll need to provide details about your charity’s purpose, activities, trustees, and finances.
Set up a bank account: Open a bank account in the charity’s name to manage its finances. You’ll need the charity’s governing document and registration details to do this.
Establish policies and procedures: Develop policies and procedures to govern the charity’s operations, such as financial management, safeguarding, and fundraising. These policies help ensure transparency, accountability, and compliance with legal requirements.
Promote and fundraise: Once your charity is established, start promoting its activities and fundraising to support its work. Consider creating a website, using social media, and networking with other organisations to raise awareness and attract support.
Report and comply: As a registered charity, you’ll have ongoing obligations to submit annual reports and accounts to the Charity Commission, comply with relevant legislation, and fulfil any other regulatory requirements.
Review and adapt: Regularly review your charity’s activities, governance, and impact to ensure it remains effective and sustainable. Be prepared to adapt and make changes as needed to achieve your charitable objectives.
It’s important to seek professional advice, such as from a lawyer or accountant, throughout the process to ensure compliance with legal requirements and best practices.