Charities
Charitable organisations exist for the benefit of the public and often do not make a profit. In order to be recognised as a charity it is necessary to show that your organisation has ‘charitable purposes’ and that these purposes have a public benefit. To be recognised as having a charitable purpose, your organisation’s aims must fall within those categories of charitable purposes as detailed in the Charities Act 2006.
Below is a non-exhaustive list of charitable purposes:
- the prevention or relief of poverty;
- the advancement of education or religion; and
- the advancement of the arts, culture, heritage or science.
We can advise you as to whether your organisation will meet these requirements.
Having identified that your organisation has a charitable purpose, it is necessary to consider whether it also has a public benefit. The concept of ‘Public Benefit’ is underpinned by two key principles:
1. There must be an identifiable benefit or benefits; and
2. The benefit must be to the public, or a section of the public.
Whatever its aims, the principles of public benefit will apply to your organisation and you will be expected to demonstrate that its aims meet these principles. It is important to note that public benefit decisions are about whether an individual organisation is a charity and not about whether particular types of charity or groups of charities as a whole are for the public benefit.
Having shown that your organisation’s charitable purposes have a public benefit, you will be required to produce governing documents. These are the formal documents which contain information such as:
- what the charity’s objectives are;
- how the charity will achieve those goals;
- who will run the charity (the trustees);
- how it will be run; and
- what happens if the charity wishes to be wound up.
Once your governing documents are prepared, we can assist you with having all your paperwork registered with the Charities Commission. Once successful, you can begin your work as a registered charity.
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