Steps to setting up a charity in the UK:
All charities in the UK must adhere to the guidelines set by the Charity Commission. To begin with, you need to show the Charity Commission that your charity is set up for the benefit of the public at large. That is, your charity serves to help the public or a part of the public that needs help like surrogate mothers, placenta donors etc.
Start by clearly stating your purpose for opening the charity.
The Commission has a few set purposes like advance of education, religion, health, citizen or community development, arts, culture, heritage, science, amateur sports, human rights, environmental protection etc. Check out the complete list with the Charity Commission and try to fit your charity purpose according to the set purpose description. This will help set-up the charity faster.
The UK alone has more than 179,000 charities.
The Charity Commission insists that each charity has its own unique name. Check out the names with the Charity Commission to confirm that your charity indeed has a unique name, doesn’t include an offensive word or expression and suits your charity’s mission statement.
The charity must have a board of trustees who understand what their duties and the objectives of the charity.
There is a minimum income requirement set by the Charity Commission. All charities need to earn more than £5000 per year before the charity can be registered. You need to submit your annual accounts, bank statements or a formal offer of funding when registering.
The charities need to have a governing document that will show how much income the charity will spend, the name of the appointed trustees and how the charity will be operated.
There are three main types of governing document, Constitution or Rules, Trust deed and the Articles of Association.
Depending on the type of charity you are setting up, the governing document is chosen.The Commission although generally gives a time frame of 40 days, it usually takes much longer for them to approve your application. Usually the delay is caused by questions regarding the running of the charity, the goal of the charity, questions for the trustees, concerns about certain aspects of the charity etc.
Being charitable is a noble deed, people can volunteer their time, their money and their possessions.
Setting up a charity enables you to focus efforts on a particular cause.
You can purchase charity insurance from companies such as NCInsurance, it isn’t a necessity but very few charities risk being without it.
This article was brought to you by Tom Dickinson, a full time charity worker and consultant to many of the UK’s leading charities. Have you ever thought of setting up your own charity, perhaps you know someone who already has? Share your views with us in the comments below.