How to register a charity in the UK

What is a charity?
• An organisation established exclusively for charitable purposes
• A group may well be a charity in the eyes of the law even if they are not yet a registered charity

Charitable purposes
An organisation will almost certainly be a charity if it meets the following four conditions:
• It must fall within one of four criteria, the relief of hardship, the advancement of education, the advancement of religion or certain other
purposes for the benefit of the community.
• It works for the public benefit
• It has not been set up to undertake political or propaganda activities or regular trading activities (though charities may carry out some trading in order to raise funds).
• It has not been set up to personally benefit the trustees or employees.

Categories of charitable purpose
• The relief of hardship: this is not defined by a specific sum of money, but there must be a genuine financial need on the part of the people who receive help from the charity. Help may include money, food, housing, advice or other services.
• The advancement of education: this is not limited to formal education, but can include playgroups, organisations providing work-related training and some recreational activities which are considered educational.
• The advancement of religion; the general assumption is that the advancement of religion is charitable (with one or two exceptions).
• Certain other purposes for the benefit of the community: a wide range of activities are considered charitable including
• Promoting urban and rural regeneration
• The relief of old age, sickness and disability, where there is no financial hardship
• Promoting racial harmony
• Promoting community capacity building, by developing skilled members of a community
• The provision of recreational facilities open to everyone
• The provisional of recreational facilities for a particular beneficiary group Public Benefit
• A charity operating within a geographical area must demonstrate that it provides a benefit to the whole area
• A community of interest, for example, disabled people or members of an ethnic group, this group must be open to anyone within that particular community of interest
• Charities who work for the relief of financial hardship may define their beneficiaries in a more restricted way Objects
• The Charity Commission will look carefully at the Objects clause in your constitution to determine whether your group is charitable
• If your objects clause allows your group to do something which the law does not recognise as charitable, your group will not be considered as a charity, even if your main objects are charitable
• The Charity Commission provides examples of charitable objects on its website,
www.charitycommission.gov.uk/registration/ex objhome.asp

• The example objects are
• Advancement of Education
• Advancement of Religion
• Animal Charities
• Carers
• Community Amateur Sports Clubs
• Community Capacity Building
• Community Transport
• Conciliation and Mediation
• Disasters
• Elderly People
• Family Planning
• The Establishment and Maintenance of a Museum and/or Art Gallery
• Promotion of the Law, Police and Crime Prevention
• Recreational Charities Act 1958
• Refugees/Those seeking asylum
• Relief of Financial Hardship
• Relief of Sickness
• Relief of Unemployment
• Urban or Rural Regeneration

Which Charities need to register? By law (with a few exceptions) every charity must register with the Charity Commission if:
• The group has a gross annual income of over £1,000
• The group occupies or uses rateable land
• The group has a permanent endowment

A charity that is not required by law to register may do so voluntarily. There is no deadline for registering or penalties for not registering Main advantages of being a registered charity
• It is easier to raise funds. Many funders will only give grants to charities
• You are entitled to tax relief on several taxes and reduced business rates on your premises. You may also reclaim the tax on covenants and other donations by individuals
• Registration lets the public know you are a legitimate organisation and are being monitored

Obligations of a registered charity
• A charity must keep to its charitable purposes at all times
• A registered charity must follow the Charity Commission rules concerning its annual report and accounts
• A registered charity has the same general obligations of any community or voluntary organisation; to follow the aims and rules of its
constitution; to be well run; to act within the law

How to register
You will need to send the Charity Commission
• A completed application form
• A copy of your constitution or other governing document
• A form signed by all of your committee members declaring that they are willing to act as charity trustees
• A copy of your accounts, or other financial information if you are a new group
• Background information, such as publicity material or newspaper articles, which give a picture of your group’s activities To help you to provide all of the information they need, the Charity Commission have issued a Registration Application Pack. It contains an application form; a trustee declaration form; guidance notes; and advice on the responsibilities of trustees.

The Pack is available from Charity Commission Direct on 0845 300 0218 or can be downloaded at www.charitycommission.gov.uk/registration/regpack.asp

If the Charity Commission accepts your application, your group should be registered within 3 weeks. If you are turned down the Commission will explain in writing why your group is no considered a charity and you will have the right to ask for a review of the decision.

England and Wales
If you plan to set up a charity, call the contact centre on 0845 300 0218. More information can be found on www.charitycommission.gov.uk/registration/default.asp

Scotland
In Scotland, recognition of charitable status is a function of the Inland Revenue Charities Office.
Revenue Charities Office
Meldrum House
15 Drumsheugh Gardens
Edinburgh
EH3 7UL
0131 7774147
www.hmrc.gov.uk/charities/
Any group in Scotland wishing to represent itself as a charity must be
recognised by the Inland Revenue as charitable for tax purposes.