How to Start a Charity

By  //  November 22, 2019

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Want to set up your own charity but you aren’t sure how to go about it? While there’s lots of information available for business start-ups, those looking to set up a charitable organization can often feel lost as to where to begin. 

Want to set up your own charity but you aren’t sure how to go about it? While there’s lots of information available for business start-ups, those looking to set up a charitable organization can often feel lost as to where to begin. 

Here, we’ll look at the basic steps you’ll need to take to set up a charity and some of the challenges and obstacles you’ll face.

What steps do you need to take?

In order to set up a charity, there are some important steps you’ll need to take. These include:

  • Consider trustees
  • Decide upon the company structure
  • Create a rulebook
  • Register your charity

Once you know what type of charity you want to set up and you’ve thought of a name, it’s time to think about trustees. These are the people who will be managing how the charity is run. As a general guideline, you’ll want to appoint at least three trustees. 

You’ll also need to decide the company’s structure. The structure you choose will determine who can run the charity and whether you can have premises for example. The Gov UK website offers great advice on charity structures.

You’ll also need to create a rulebook for the charity, also known as a governing document. This sets out the rules that need to be followed and has to be signed by your trustees and a witness. 

Once you have all of this information, it’s time to register the charity. You’ll only need to register if you’re brining in over £5,000 a year. 

What are the challenges and obstacles?

The steps for setting up a charity are fairly straightforward. However, that doesn’t mean you won’t face a number of challenges and obstacles.

Firstly, you’re going to face a lot of competition no matter what type of charitable business you’ve set up. You’re also going to need advice from Withers professionals to ensure you understand the legalities.

Then there’s the finance to take into account. You’ll need to organise a fundraiser to get the money together to start the charity if you don’t already have the funds.

As you can see, setting up a charity isn’t a complicated task, but there are challenges you’ll need to be aware of.

The government website has a lot of useful information for those looking to start a charity so it’s worth doing a little research first before registering your charity business. 

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