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Forming your own Charity – how to satisfy the Charity Commission
Sameena Munir
We advise high net worth clients who wish to further their own philanthropic aims and make a real difference to their community and/or to those who are disadvantaged via their own charity in England and Wales.
In addition to establishing charities for our clients, we also advise trustees of existing charities.
What structures are available
We establish individual charities by trust deed or a Charitable Incorporated Organisation (“CIO”). Our corporate team would establish a charity by a company (limited by guarantee).
Each charity will have a core document setting out its charitable objects / aims and how the charity will work. We work closely with our clients to ensure that the objects match their aims and are exclusively charitable.
Each charity structure has different personal liability consequences for the trustees / members and we would advise the client accordingly based on the future goals of the charity.
How are charities registered in England and Wales
Charities that have an income of £5,000 or more per annum or is a CIO will need to be registered with the Charity Commission.
We will prepare an application to the Charity Commission for the new charity to be registered in England and Wales. The application details why it would be in the public interest for the new charity to be registered and also deals with funding queries and how the trustees would practically carry out the objects.
In conjunction with our colleagues from the Employment Team, we can also prepare any necessary policies to support the application (i.e. if the charity is working with vulnerable people, it will need a safeguarding policy). We can also deal with any potential conflict if there is an intention for trustees to receive funding / salary from the charity as this would need to be disclosed to the Charity Commission.
We set out our top tips for forming your own charity and how to satisfy the Charity Commission based on our extensive experience here.
Acting for trustees of existing registered charities
Our partners act as professional trustees for charities.
We provide advice to trustees of existing charities who wish to change their structure from a charitable trust to a CIO.
We also provide on-going advice to trustees including removing and appointing new trustees, dealing with retired trustees, assisting with policies and guidance about how trustees should act. All are specific to each charity.
Please contact of our dedicated philanthropy team should you wish to form your own charity or require advice relating to an existing charity.
Frequently asked questions
Do I need a solicitor to set up a charity?
The application is open to members of the public to complete. However, we have found that having a solicitor to prepare the application is invaluable as we are able to use our experience to prepare the papers and also to liaise with the Charity Commission post-submission.
We set out our top tips for forming your own charity and how to satisfy the Charity Commission based on our extensive experience here.
Can I run a charity on my own?
It is recommended that a registered charity has a minimum of three trustees. Whilst there may be one main person who is the founder of the charity, it is important that there are other likeminded people on the trusteeship board to help achieve the charitable objects. It is also recommended that the trustees change from time to time to ensure that new ideas are brought to the charity.
What is a charitable gift?
A person can make a gift to charities during their lifetime or in their Will. Gifts could be made to a person’s own charity which they have registered.
Should you wish to leave a charitable legacy in your will, you may find it helpful to review our blog about charitable legacies here.
Is there a limit on how much I can give to charity?
There is no limit on how much you can give to a registered charity.
Are charitable gifts tax free?
Gifts left to charities during lifetime or in a Will are not subject to Inheritance Tax (“IHT”).
Charitable gifts made through Payroll Giving will not be subject to Income Tax, but National Insurance contributions will still apply to the donated amount.
