How to Set Up a Community Charity

How to Set Up a Community Charity - How to Set Up a Community Charity

Community charities are vital for the world we live in today. Throughout the UK, various communities are struggling with poverty, housing, and other serious conditions. Although a lot needs to be done to change their circumstances, small fundraisings and charity events can do wonders in helping different communities thrive and become less prone to negative factors.

Setting up a community charity is easily done and will mean a lot to those it will benefit in the community.

Setting up a Charity

Setting up a Charity - How to Set Up a Community Charity

The first step in setting up a charity in the UK is to find trustees. This is a group of people who will be trusted with all legal and business-related aspects of the charity. Trustees should be experienced in their responsibilities and have a passion for the community.

Charitable Purposes

Secondly is to make sure that your charity is fully established to benefit the community. Any charity needs to legally benefit the public or the community; otherwise, it cannot be registered as a charity.

Name your Charity

Name your Charity - How to Set Up a Community Charity

A charity name will need to be decided on before the structure, and governing documents are processed. Without an official name, your charity cannot register. No acronyms or offensive words may be used in your name and should not be misleading from what the charity does.

Structures

A structure needs to be chosen for your charity. The structure in which you choose to register should correspond with how the charity will be operating. These are the categories of structures available.

  • Charitable incorporated organization – This structure is designed for charities. This structure needs to be registered with the charity commission and does not need to be registered with the Companies House.
  • Charitable trust – Charitable trust is a charity organization’s method of managing assets such as the finances, investments, buildings, and land of a charity.
  • Unincorporated charitable association – This is the perfect structure for volunteers and those who are passionate about helping the community. It’s a simple structure for a common purpose. This is solely for volunteers as an Unincorporated charitable association is not allowed to employ staff.
  • Charitable company – This structure is limited by guarantees rather than shares. Trustees have limited to no liability for charitable companies’ debts or liabilities which makes this structure better for small community charities yet also riskier.

Governing Document

Governing Document - How to Set Up a Community Charity

The last step before registering your charity is to create a governing document for your charity that explains how your charity organization will be operated and who it will benefit from. How you will be getting initial funding is also important.

Register your Charity

Register your Charity - How to Set Up a Community Charity

Registering the charity is the final step and needs to be done differently for each structure of the charity category.

By following these details, it will be easy to set up your dream charity to promote and support your community with what they need to thrive.