How to Set Up a Charity

Step-by-step guide on how to set up a charity, including how to register it and what type of legal structure to choose.

Checkout this video:

The first step is to choose the type of charity you want to set up

There are many different types of charities, each with its own rules and regulations. The type of charity you set up will determine how you can operate and what your obligations are.

The four main types of charity are:
– trusts
– charitable companies
– unincorporated associations
– charitable incorporated organisations (CIOs)

You may also hear about special case charities such as:
– churches
– schools
– hospitals
– political parties

Each type of charity has different rules about how it must be set up and run. You will need to decide which type of charity is right for you.

The second step is to find the right people to help you with the set-up process

The second step is to find the right people to help you with the set-up process. This may include hiring a solicitor, an accountant and/or a financial advisor. You should also consider contacting your local Chamber of Commerce or Business Link for advice.

Once you have assembled your team, you will need to decide on the legal structure of your charity. This decision will be based on a number of factors, including the size and nature of your charity, your charitable objectives, and the way you intend to operate. The three most common legal structures for charities in England and Wales are:

-Charitable companies
-Charitable trusts
-Unincorporated associations

You can find more information on each of these legal structures on the Charity Commission website.

The next step is to draft your governing document. This is a document which sets out the rules for running your charity. It will need to be approved by the Charity Commission before you can register as a charity. Once you have registered, you will be required to comply with the terms of your governing document at all times.

The third step is to register your charity with the relevant authorities

Before you can start fundraising or spending any money, you will need to register your charity with the relevant authorities. Depending on your country or region, this may be the government, a charity regulator, or both. You will also need to decide on a legal structure for your charity. The most common structures are trusts and companies limited by guarantee.

Trusts are the most common type of charitable organization in many countries, including the United Kingdom, Australia, and New Zealand. A trust is an arrangement whereby property (often money) is held by one person (the trustee) for the benefit of another (the beneficiary). Trusts can be either ‘express’ trusts, where the terms of the trust are set out in a written document, or ‘implied’ trusts, where the terms are inferred from the actions of the parties involved.

Companies limited by guarantee are common in Ireland and Canada. A company limited by guarantee is a company that does not have share capital (i.e. it is not owned by shareholders). Instead, it has members who agree to pay a fixed amount in the event of the company being wound up. This type of structure is often used by clubs, societies, and other membership organizations.

Once you have decided on a legal structure for your charity, you will need to register it with the relevant authorities. In most countries, this will involve preparing and submitting a constitution or articles of association, as well as an application form and fee. The registration process can be complex, so it is advisable to seek professional advice before proceeding

The fourth step is to set up a bank account and start fundraising

The fourth step is to set up a bank account and start fundraising.

When you have incorporated your charity, you will need to set up a bank account in the charity’s name. This is so that you can start collecting donations. You will need to provide the bank with your charity’s registration number, as well as the names and addresses of your trustees.

It is a good idea to open a business account, as this will give you some extra features such as a debit card and online banking. You may also be able to get a reduced rate on transaction charges.

Once you have set up your bank account, you can start fundraising! Remember to keep track of all the money coming in and going out, so that you can update your rusty books (see step 2).

The fifth step is to promote your charity and get the word out there

There are a number of ways to promote your charity and get the word out there. You can use traditional methods like print and broadcast media, or you can use online methods like social media and email marketing. You can also use a combination of both offline and online methods.

Here are some ideas for promoting your charity:

– Use social media to get the word out about your charity. Create a Facebook page or Twitter account for your charity, and post regular updates about your work.

– Make a website for your charity, and include information about your work, how to donate, and how to get involved.

– Use email marketing to keep in touch with supporters and update them on your work. Send out regular newsletters or appeal for donations.

– Organize fundraising events like bake sales, car washes, or sponsored walks/runs. Advertise these events in local newspapers or online.

– Contact local businesses and ask if they would be interested in supporting your charity through donations or sponsorship.

Scroll to Top