Set up a charity

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1. Set up a charity

There are 6 steps to setting up a charity.

  1. Find trustees for your charity - you usually need at least 3.

  2. Make sure the charity has 鈥�charitable purposes for the public benefit鈥�.

  3. Choose a name for your charity.

  4. Choose a structure for your charity.

  5. Create a 鈥�governing document鈥�.

  6. Register as a charity if your annual income is over 拢5,000 or if you set up a charitable incorporated organisation (CIO).

There are and .

Tax relief

To get tax relief your charity needs to be recognised by HM Revenue and Customs (HMRC).

2. Charitable purposes

Your charity must have 鈥榗haritable purposes鈥� that help the public (known as being 鈥榝or public benefit鈥�).

Charitable purposes include things that contribute to:

  • relieving poverty
  • education
  • religion
  • health
  • saving lives
  • citizenship or community development
  • the arts
  • amateur sport
  • human rights
  • religious or racial harmony
  • the protection of the environment
  • animal welfare
  • the efficiency of the armed forces, police, fire or ambulance services

Read guidance on writing your charitable purposes.

You should also read about public benefit to decide if your charity鈥檚 aims are suitable.

You cannot set up a charity to help one specific person.

3. Name your charity

The official name of your charity is known as its 鈥榤ain name鈥�. Your charity may also have a 鈥榳orking name鈥� which is another name it uses.

Examples

The main name for Comic Relief is Charity Projects. Comic Relief is the working name.

The main name for NSPCC is the National Society for the Prevention of Cruelty to Children. NSPCC is the working name.

Not all charities have working names.

Your charity鈥檚 main name or working name must not:

  • be the same as or too similar to the main or working name of an existing charity
  • use words you do not have permission to use, for example a trade mark
  • use offensive words or acronyms
  • be misleading, for example suggest your charity does something it does not

Search the charities register to check the names of registered charities. Unregistered charities will not appear in the register. You should search the internet to see if other charities or organisations have similar main or working names.

You may have to change your charity鈥檚 main or working names or stop using them. This can happen if they are too similar to another charity鈥檚 name or they use words that are not allowed. This can delay your charity registration.

Words you need permission to use

You need evidence that you have permission to use:

  • the name of a famous or copyrighted work, such as a book or a piece of music
  • the name of a famous person or character
  • trade marks, such as Olympic or Paralympic
  • royal titles, such as King, Queen, Prince, or His or Her Majesty

Using 鈥榗harity鈥� in a name

You can use the words 鈥榗harity鈥�, 鈥榗harities鈥� or 鈥榗haritable鈥� in your charity鈥檚 name but you need approval from the Charity Commission if you use them when you register a company name with Companies House.

Non-English names

You must include a translation of any non-English words in your charity鈥檚 name when you register.

4. Structures

You must choose a structure for your charity, which will affect things like:

  • who runs the charity
  • how the charity is run
  • what the charity can do, for example employ people or own property

There are 4 common charity structures.

Charitable company

Your charitable companies will have to be limited by guarantees rather than shares when you register. Select 鈥榩rivate company limited by guarantee鈥� on the form.

Trustees have limited or no liability for a charitable company鈥檚 debts or liabilities.

Apply online

You can apply online to register a charitable company with Companies House.

Apply by post

Fill in form IN01 to register a charitable company with Companies House by post.

It costs 拢40.

This form is also available in Welsh.

Charitable incorporated organisation (CIO)

A CIO is an incorporated structure designed for charities. You create a CIO by registering with the Charity Commission. You do not need to register with Companies House.

Trustees have limited or no liability for CIO debts or liabilities.

Charitable trust

A 鈥榗haritable trust鈥� is a way for a group of people (鈥榯rustees鈥�) to manage assets such as money, investments, land or buildings.

Unincorporated charitable association

An 鈥榰nincorporated charitable association鈥� is a simple way for a group of volunteers to run a charity for a common purpose.

Unincorporated charitable associations cannot employ staff or own premises.

5. Governing document

You must create a 鈥榞overning document鈥� (or 鈥榬ulebook鈥�) for your charity that explains how your charity is run.

Your governing document lets trustees and other interested parties find out:

  • your charity鈥檚 purpose
  • who runs it and how they run it
  • how trustees will be appointed
  • rules about trustees鈥� expenses
  • rules about payments to trustees
  • how to close the charity

What type of governing document you need depends on your charity structure.

Read guidance on writing your governing document, including example templates.

You can create your governing document using your own templates but it may mean registration takes longer.

The trustees must meet to sign the governing document. You鈥檒l need an independent witness if you鈥檙e setting up a charitable trust.

6. Register your charity

You must if both:

  • its income is at least 拢5,000 per year or it鈥檚 a charitable incorporated organisation (CIO)
  • it鈥檚 based in England or Wales

The rules are different:

Supporting documents

When you apply you鈥檒l be asked:

You鈥檒l also need to give your charity鈥檚:

  • name
  • bank or building society details
  • most recent accounts
  • contact details, including a postal address
  • trustees鈥� names, dates of birth and contact details
  • a copy of your charity鈥檚 governing document (in PDF format)

Proof of income

Proof of income, if needed, can be any one of:

  • your charity鈥檚 latest 鈥榩ublished鈥� annual accounts (in PDF format) - they must have been approved as proof of income by an independent examiner or auditor
  • a recent bank statement (as a scanned image)
  • a formal offer of funding from a recognised funding body (as a scanned image)