Starting a Charity - Some Key Information

by Startacus Admin

You may wish to become a charitable company if;

• You intend to grow into a fairly large organisation

• You have (or will have) employees

• You plan to enter into commercial contracts such as the provision of services

3) Trusts - These are quite different from the other types of charities because they are concerned (mostly) with the distribution of money (in the form of grants) from a central fund and, on the whole, do not undertake the wide range of activities that you would expect of a typical charity. As was the case with unincorporated associations, trusts do not enjoy the advantages of having legal status. This would be an appropriate category if your charity will make grants to individuals and organisations, be run by a small group of people who will administer the funding and not be employing any staff.

4) Charitable incorporated organisations - This final category of charity is something of an amalgamation of the first two and came into being in 2012.  They receive the benefits which come from being classified as a company without actually having to register with Companies House. Charitable incorporated organisations can enter into contracts and its trustees will normally have limited or no liability for any debts which the charity amasses.

It can be quite tricky to work out which of these categories you will fall into, so be sure to pay a visit to the Charities Commission Website where you will find lots more information.

Do you need to register your charity?

Depending on a number of factors you may or may not have to register your charity with the Charities Commission.  Generally you must register if your income is at least £5000 per annum however this does not mean that if your charity is earning less than this, it cannot benefit from the financial and legal benefits. You should apply to HMRC to ensure that you are receiving the tax breaks and gift aid that you are entitled to.

In some other cases, charities do not need to register with the commission because they are already being regulated by an independent body - such charities can include universities, national museums and galleries and some school governing bodies.

Other organisations are prevented from registering with the Charity Commission until their annual income reaches the point of £100,000 per annum because they are supervised by, or accountable to, another body or authority.  These organisations are known as ‘exempt charities’ and can include churches and chapels of some Christian denominations,  charitable funds of the armed forces and scout and guide groups.

Setting up a charity can be a really fulfilling and worthwhile undertaking so please don't let yourself be put off by all of the red tape - the chances are that most of the information here won't apply to you, but it’s always best to check with the Charity Commission's website just to be sure.

Join Startacus - the Self Start Society!

If you like what you see here on Startacus, why not become a member of our growing community? It's free! And you'll get all this - exclusive access to our Business Toolkit, discounts and offers galore for your business via our member only business deals, the chance to network and connect with loads of fellow self-starters, and maybe even become our celebrated 'Self-Starter of the Week' and tell the world your startup tale! Join right here for free

Subscribe to our newsletter

If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.

• #charity
• #social good
• #
• #starting a charity

Published on: 24th February 2014