Website of the UK government

What you need to be a charity

If any of the activities or ‘purposes’ of your organisation are not charitable you will not be able to become a registered charity. 

A charity must also be set up for the ‘public benefit’ – this means an organisation’s activities benefit a sufficient section of the community and not just a few selected people.

• More information about charitable purposes and public benefit from the Charity Commission Opens new window

An organisation must register with the Charity Commission if:

• it is set up in England and or Wales
  
• the majority of charity trustees live in England and Wales
  
• the majority of the assets are in England and Wales
  
• it is registered as a company in England and Wales

and, one or more of the following apply:

• the organisation has permanent endowment (land, buildings, investments or cash which may not be spent)
  
• the organisation has a total income of more than £1,000 a year
  
• the organisation has land, including buildings that qualify for business rates

Organisations in Scotland must register with the Office of the Scottish Charity Regulator.

• Office of the Scottish Chariy Regulator Opens new window

If you are setting up a charity you will have to consider all aspects of running the charity. In some aspects this is similar to running a business, and some of the responsibilities are the same.

• Find out about running a charity
• Advice on the responsibilities of trustees from the Charity Commission Opens new window
• Government advice on business rates Opens new window

Depending on to the aim of your charity– there are three main forms a charity can take. Find out about the different types of charity and what they can do by reading the ‘Types of charity’ article from the link below.

• Types of charity

Advantages and disadvantages of being a registered charity

Some of the advantages of becoming a charity are:

• people are more likely to offer time, energy or money to a registered charity
  
• many grant-makers and other funders only give to charities
• many organisations offer free or discounted help and advice to charities
  
• charities receive a wide range of tax breaks
  

• The tax advantages of being a charity Opens new window

There are also restrictions and rules that you must follow if you become a charity:

• your organisation must operate strictly within the limits set out in the governing document
  
• the organisation cannot benefit anyone you have a relationship with – eg family members, friends or members of a group or club
  
• your ability to take part in political activities and trading with other companies will be limited
  
• your organisation can’t have a political purpose or support a political party
  
• your organisation can’t be set up for the benefit of a specific named individual or individuals
• trustees cannot usually be paid or gain financially from the work of the charity

• Campaigning and political activities advice for charities Opens new window
• Search the public Register of Charities Opens new window

If your organisation does not meet the minimum requirements there are alternative to setting up a charity. To find out more, read ‘Alternatives to setting up a registered charity’ from the link below.

• Alternatives to registering as a charity