How to set up a charity
England and Wales. Scotland registers with OSCR, Northern Ireland with the Charity Commission for Northern Ireland.
Before you start: three checks
- Is it charitable? Not everything that helps a community is. A charity needs purposes the law recognises, and nothing else. A community interest company (CIC) or a community amateur sports club (CASC) registered with HMRC can't be a charity.
- Is someone already doing it? Search the register of charities and the internet. The Commission suggests working with an existing charity instead. For raising money for one cause, such as a one-off appeal, a named fund with a community foundation saves setting up a charity.
- Know the restrictions. Trustees are normally unpaid. Trustees, founders and people connected to them can't usually benefit unless it's authorised. No campaigning for a change in government. Registered charities publish up-to-date information about their work and finances.
Before applying
The Commission says to apply only once the charity is set up: purposes decided, structure chosen, governing document written, name chosen, trustees recruited, funding worked out.
| Step | What you end up with | Where it goes wrong |
|---|---|---|
| 1. Purposes | One or more purposes, each saying what, who, where and how | Vague words like "community benefit" or "welfare" on their own |
| 2. Structure | CIO, charitable company, association or trust | Overlooking that in a trust or association the trustees sign leases and contracts personally |
| 3. Name | A main name, and any working names | Too close to an existing charity; a CIO name with a sensitive word that needs Companies House approval |
| 4. Trustees | Eligible people; the Commission recommends at least three, unrelated | A trustee who turns out to be disqualified, such as by an undischarged bankruptcy |
| 5. Governing document | A model document (the Commission's, or an approved one from your umbrella body), completed using its notes | Edited model wording with no explanation of why |
| 6. Money | A funding plan; for non-CIOs, normally evidence of annual income over £5,000 | A non-CIO applying under £5,000 with no exceptional reason |
| 7. Application | Online form, PDFs attached | Generic answers; electronic signatures on the trustee declaration |
1. Purposes
Each purpose must fall under one of the 13 descriptions in the Charities Act 2011 and be for the public benefit. Write what the charity will achieve, for whom, where, and by what means. Writing purposes, with examples.
2. Structure
Decide two things: do you need a body that can employ, own and sign contracts in its own name, and will anyone besides the trustees vote? Structures compared.
A non-CIO with annual income under £5,000 can't register except in exceptional cases, such as a significant funding offer that needs a charity number. A CIO must register whatever its income. So a CIO is the usual route to a charity number before income reaches £5,000.
3. Name
Search the register, and the internet for unregistered charities, for names that are the same or too similar. You need evidence of permission for the name of a famous person or work, a trade mark, or a "Royal" word. Explain acronyms and translate non-English words. The Commission can't reserve or suggest a name.
4. Trustees
The Commission recommends at least three unconnected, unrelated trustees with a range of skills. Minimum age: 16 for a CIO or charitable company, 18 for others. Check each one against the disqualification rules before they sign. Trustee rules.
5. Governing document
Use a model: the Commission's, or an approved template from a national body. Write your own only if none fits. A CIO's constitution has to follow a Commission model as closely as circumstances allow. Work through the model's notes: they say which clauses the law requires, which are good practice and which are optional. Fill every blank, remove only the options you're not using, and renumber. Hold a meeting to agree the document and minute it. Then:
- CIO: it doesn't exist until registered. The constitution's date is the date of registration.
- Charitable company: incorporate at Companies House, then apply with the certificate of incorporation. If the name includes "charity", "charities" or "charitable" and the company doesn't exist yet, apply to the Commission first and ask for a Statement of Non-Objection. Incorporate using the statement, then send the Commission the certificate and articles. Setting up the company, section by section.
- Trust: an independent person witnesses the trustees' signatures.
- All but CIOs: all trustees should sign.
6. Money and the bank account
The application asks how you'll be funded, with follow-up questions for each source: donations, grants, fees, sponsors, loans. Non-CIOs normally prove annual income over £5,000 with their latest accounts or a recent bank statement. A formal offer from a recognised funding body may be accepted.
The question list asks for bank details if the organisation has an account. The trustee declaration covers funds that "are held (or will be held)" in the charity's name with a bank or building society in England or Wales. So a new CIO can apply before it has an account. It will still need one in its own name: the Commission says even a small charity needs a bank account.
7. The application
Online. You get a reference number and can return to it for 3 months. Have these ready:
- governing document as a PDF, signed or witnessed where needed
- company only: certificate of incorporation and memorandum; or, with "charity" in the name and not yet incorporated, a request for a Statement of Non-Objection (the governing document is still needed)
- non-CIO only: evidence of income over £5,000, unless you have exceptional grounds
- public contact details with a postal address (not usually a PO box)
- each trustee's full name, address, previous names, date of birth and contact details, with an email address if they have one
- the trustee declaration, signed in ink by every trustee and scanned to PDF
- minutes of the meeting that agreed any job or purchase involving a trustee, the founder, a relative or a connected organisation; for premises owned by any of them, the lease or agreement and the minutes
- if you work with children or vulnerable adults: confirmation the trustees follow the Commission's safeguarding guidance and have done the checks the law requires
Then the explanations: your activities, the benefit they bring, who can benefit, and how the trustees will choose who and what to support. Every question explained.
8. After you apply
The Commission checks the basics within 48 hours, including trustee eligibility. It then registers, registers with conditions, returns the application, or rejects it. Its CIO model guidance says it can normally decide in 40 working days if you use its model objects and governing document, show your activities match your objects, and show any private benefit is incidental and properly managed. It received a record 11,759 applications in 2025-26, so apply well before any deadline. Timings in detail.
Gift Aid needs separate recognition from HMRC. If you have to register with the Commission, do that first. Applying to HMRC.