Starting a Charity

Starting a charity has many similarities to starting a for-profit company, and if you have been responsible for your own company formation in the past then you should find the process fairly intuitive. Unfortunately the charity sector does not have the same level of 3rd party company formations services available as in the private business world, so don't expect many shortcuts.

However, the most difficult part of setting up a new charity is not the paperwork, but deciding just how you want it to be run. Finding trustees that you can depend on and who are willing to go the extra mile for little or no fiscal reward can be nearly impossible. You can afford to give people the benefit of the doubt for the odd day volunteering here and there, but named trustees need to be people who can be trusted to maintain a consistently high level of interest over the long term. Choose wisely, as they could make or break your charity as an effective organisation

It is also important to ensure that your charity's aims are considered to be charitable by the rule of law. For example, raising money for your child's school sports team may be considered by the vast majority to be a charitable act, and should they contribute to the process they would consider it on too, but because the beneficiaries are a specific, limited group, you could not legally form a charity for this purpose.

Full details on what can and can't serve as a charity's purpose can be found on the government's Charity Commission website, and are highly recommended reading before you go any further.