How to register a charity in the UK: A complete guide

Starting a charity is a noble cause that allows the spread of kindness and impacts society on a transformative tide. While the requirements for setting up a UK charity might seem simple, navigating the minefield of registration can be complex, ranging from different structures to choose from and the criteria to meet, it can be overwhelming.

This guide would take the sting out of the charity registration process. Let’s dive in!

Understanding the different types of charities in the UK

You need to decide on your charity’s legal structure before entering the registration requirements, there are various options, and each has pros and cons. It is essential to distinguish between unregistered charities, also called unincorporated associations, and registered charities. 

If you decide to register your charity,  you must register with the relevant regulator, which is location-dependent. For England and Wales, it’s the Charity Commission; for Scotland, it’s the Office of the Scottish Charity Regulator (OSCR); and for Northern Ireland, it’s the Charity Commission (CCNI).

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For many years, the leading choices for registered charities were charitable trusts and charitable companies. However, the 2006 Charities Act introduced a new structure tagged Charitable Incorporated Organizations (CIOs). The Scottish Charitable Incorporated Organizations (SCIOs) is the similar structure for Scotland.

Charitable companies are registered with Companies House and the Charity Commission, and several charities still operate under this long-established structure. Charitable trusts are becoming less popular because they are unincorporated, which means trustees have personal liability.

Many new charities prefer Foundation CIOs because of their simplicity and limited liability. Association CIOs, on the other hand, are great for charities that want active member involvement and allow members to vote.

Even though charitable foundations do not have a distinguishable legal structure, the term is usually used to describe charities established by individuals or companies. You can call your charity a foundation if you deem it fit, but its legal status remains unchanged. 

Many charities go for a CIO because of legal protection and simplicity. However, the specificity of your needs would determine the choice that is best suited to you.

Key requirements for UK charity registration

To register your charity smoothly, you must submit the following information to the Charity Commission: First, your charitable purposes and goals; there are thirteen philanthropic purposes, but falling under either of these categories doesn’t guarantee approval. 

Your charity’s goals must be clearly defined and aligned with the thirteen official charitable purposes. If your goals are ambiguous, you could encounter delays.

Public benefit requirements must be incorporated into your charity’s activities. The Charity Commission thoroughly examines potential benefits to trustees, so financial transactions involving trustees must be well-documented and justified.

Your charity must have at least two unconflicted trustees who are not close family members or business partners. A trustee with a personal or financial interest in the charity’s operations must be excluded from related discussions, and all decision-making processes must be recorded in meeting minutes.

You must appoint not less than three trustees, even though many charities have between three and twelve; a trustee declaration form must be completed to ensure all details are accurate; otherwise, you may encounter rejection. 

You must check your trustee’s eligibility, and if you are working with vulnerable people such as children, adults with disabilities, or older people, trustees must understand the safeguarding responsibilities. Disclosure and Barring Service (DBS) checks may be required; this background check shows a person’s criminal history, including convictions, cautions and warnings; this is a metric for assessing an individual’s suitability to work with vulnerable individuals.

Every charity requires a constitution, a governing document with guiding rules and objectives. The Charity Commission provides model templates, but you’ll need to tailor some sections, including your charity’s name, goals, trustees’ roles and responsibilities, and decision-making process. 

The fewer objects you include, the less complex the application process. You should also avoid listing fundraising as an object because it’s a means to an end, not a charitable purpose.

How much does it cost to register a UK charity?

There is no Charity Commission charge to set up a UK charity, but expect to pay about £1000 or more for someone to do it for you, although some charge rates are way higher. Make your findings and ask the company to disclose all costs, including VAT and additional fees, such as providing policies, and check what the service includes.  

The Commission almost always comes back with further questions, so you may need to submit a decision review to appeal if your initial application to set up your charity is rejected.

Common mistakes to avoid

Many applicants encounter unnecessary delays due to common mistakes. It is essential to watch out for incomplete trustee declaration forms, double-check that all details are correct and all boxes are ticked, be precise about what your charity will do, and keep your goals concise. More goals mean more scrutiny, so keeping them concise is in your best interest. 

Lastly, ensure your constitution aligns with the required format.

Future-proofing your charity

When defining your charitable goals and objectives, consider the long term. If you aim to “provide music lessons for disadvantaged children in Liverpool,” you may be unable to expand to other arts programs or locations.

A broader objective, such as “to promote arts education for disadvantaged young people in Liverpool, primarily through music lessons, but not exclusively” or “to advance arts education for disadvantaged young people in Liverpool, through such means as the trustees determine,” gives you more flexibility. This way, you can adjust to changing circumstances and opportunities with time, such as expanding to other arts programs like drama or visual arts or serving disadvantaged young people in different locations.

 Let your objectives be specific to satisfy the Charity Commission’s requirements and broad enough to accommodate your future developments. You must anticipate operational changes, including language permission with in-person and digital delivery options.

As your understanding of community needs develops, consider supporting additional vulnerable populations. Also, ensure that your charity’s constitution allows collaboration with other organizations that could be valuable for funding and expanding impact.

Let your purposes be structured to accommodate various funding streams like donations, grants and social enterprise activities. Implementing robust data protection policies that scale with your operations is critical to ensuring that charitable purposes permit investing in necessary technology systems. 

Remember that even though the Charity Commission allows amendments to your governing documents, formal approval that aligns with charitable purposes is required. By mindfully drafting your initial objectives with future flexibility, you’ll minimize the need for complex amendments later while preserving your ability to innovate and respond to changing social needs.

Final steps and submission

Before submitting your application, gather all necessary documents, including your constitution, trustee declaration forms, and additional policies, such as safeguarding if applicable. On the online system, remember timeouts and permanently save your progress to avoid data loss. 

Once submission is made, the Charity Commission will review your application, and processing times will differ. However, providing clear and accurate information can help hasten your approval.

Charity registration FAQs

• How much does it cost to register a UK charity? There is no Charity Commission charge to set up a UK charity, but expect to pay about £1000 or higher when you outsource it.
• How much income do you need to register as a charity? Registering a charitable trust or company requires an income of £5000 or a grant offer.  You do not need any income to register as a Charitable Incorporated Organization. (CIO)
• What is the duration of the registration process? You should plan for four months to register your charity. One month to gather all the required documents and information, make your application, and wait three months for its approval, although the approval can be quicker or take more time.
• What are the different types of charities? The four legal types of registered charities are charitable trusts, charitable companies, Foundation Model CIOs, and Association Model CIOs.
• What’s the best charity structure? The majority choose a Foundation CIO, although there are circumstances when a charitable company or Association CIO might be best.
• What does it mean if a charity is incorporated? An incorporated charity is a legal entity with a separate identity from the trustees who run it, which gives them better protection from personal liability.
• Which charities are incorporated?  Charitable companies and CIOs are incorporated, giving their trustees limited liability protection.
• Why would you register as a charity?  Registered charities are the best type of non-profit for fundraising, and there are significant charitable tax benefits to being a registered charity.
• Can I run a charity without registering?  You can set up an unregistered charity by creating an unincorporated association. However, you must register if your annual income reaches £5000.
• What charities are exempt from registration? Institutions of further and higher education, universities, industrial and provident societies, friendly societies, or national museums established by Act of Parliament or Royal Charter are largely exempt charities.

Action plan

Registering a charity in the UK requires careful planning, but you can demystify the navigation process with the right approach. By choosing the right structure, crafting clear charitable objectives, ensuring proper governance, and submitting a thorough application, you’ll be on your way to profoundly impacting society. 

This comprehensive guide is the light that will walk you through the charity registration maze, and by incorporating these processes one after the other, your charity will be up and running and ready to change lives.