Journey

Set up a charity

Establish a registered charity in England and Wales - from charitable purposes to ongoing compliance

Starting a Business Updated 15 September 2026

8 milestones references 4 guides

Is a charity the right structure?

Charities benefit from tax reliefs and public recognition, but must exist exclusively for charitable purposes and provide public benefit. The Charity Commission regulates charities in England and Wales - registration creates ongoing compliance obligations.

This journey covers establishing a registered charity. If you're considering a Community Interest Company (CIC) or other social enterprise structure, those have different rules.

Check your purposes are charitable

Your organisation must have purposes that fall within one of the 13 statutory descriptions in the Charities Act 2011. Having a worthy aim is not enough - it must be legally charitable.

Public benefit requirement

Alongside having charitable purposes, you must demonstrate public benefit. This means there must be an identifiable benefit available to the public, or a sufficient section of it, and any private benefit must be incidental.

gov.uk
Charitable purposes guidance (opens in a new tab)

Detailed Charity Commission guidance on the 13 charitable purposes and how to demonstrate public benefit.
Choose your charity structure

The legal structure you choose affects registration requirements, trustee liability, and governance complexity. Consider your charity's activities, assets, and risk profile.

Charity structures compared

Each structure offers different levels of liability protection and regulatory requirements.

Charitable Incorporated Organisation (CIO)

Incorporated, register with Charity Commission only, limited liability, must register regardless of income

Charitable company (limited by guarantee)

Incorporated, register with Companies House AND Charity Commission, limited liability, register charity if income over £5,000

Unincorporated charitable association

Not incorporated, personal liability for trustees, register if income over £5,000, cannot employ staff or hold property in own name

Charitable trust

Not incorporated, personal liability for trustees, register if income over £5,000, trust deed requires independent witness

Incorporated structures (CIO, charitable company) provide limited liability protection for trustees. Unincorporated structures (association, trust) are simpler but trustees have personal liability for debts.

Choose a charity structure (opens in a new tab)

Which structure suits your charity?

Charitable Incorporated Organisation (CIO) - best for most new charities. Single registration with Charity Commission only, limited liability for trustees, can hold property and employ staff.

Charitable company (company limited by guarantee) - dual registration with Companies House and Charity Commission. Well-understood structure, limited liability, but more compliance burden.

Charitable trust - simplest for small, grant-making charities. No separate legal personality, so trustees have unlimited personal liability.

Unincorporated association - flexible for small charities with minimal assets. No limited liability protection.

gov.uk
Model governing documents (opens in a new tab)

Charity Commission provides template constitutions for CIOs and other structures - using these speeds up registration.
Check if you need to register

Not all charities must register with the Charity Commission. Whether registration is mandatory depends on your structure and income level.

Registration thresholds

CIOs must always register. Other structures only need to register above income thresholds.

England and Wales threshold

£5,000 annual gross income (CIOs must register regardless of income)

Scotland threshold

No threshold - all charities must register with OSCR

Northern Ireland

No threshold - all charities must register with CCNI. A proposed exemption threshold (£20,000 income and £100,000 assets) is enabled by the Charities Act (Northern Ireland) 2022 but no regulations have been made, so registration remains mandatory regardless of size

Excepted charity threshold

£100,000 - excepted charities above this must register (England and Wales)

Excepted charity exception end date

31 March 2031 (religious charity exceptions expire)

Register your charity (opens in a new tab)

CIOs must register regardless of income - they only exist as legal entities once registered. Charitable trusts and unincorporated associations with income under £5,000 can choose whether to register.

Even below thresholds, registration has benefits: public recognition, ability to claim Gift Aid, and protection of the word "charity" in your name.
Appoint trustees

Every charity needs trustees - the people legally responsible for running it. They must act in the charity's best interests and ensure it delivers public benefit.

Trustee requirements

The Charity Commission requires a minimum number of trustees and sets eligibility rules.

Minimum trustees (recommended)

3 trustees recommended by Charity Commission

Minimum trustees (legal)

1 for charitable trusts, 2 for CIOs (foundation model), 3 for CIOs (association model)

Public benefit duty

Trustees must ensure charity provides public benefit and have regard to Charity Commission guidance

Governing document

Required - must include charitable purposes, trustee appointment rules, dissolution clause

Who cannot be a trustee: Certain people are automatically disqualified - including those with unspent convictions for dishonesty, undischarged bankrupts, and people previously removed as trustees by the Charity Commission. Acting while disqualified is a criminal offence.

gov.uk
Trustee disqualification rules (opens in a new tab)

Check who is automatically disqualified from acting as a charity trustee.
Register with the Charity Commission
Registration confirms your organisation is a genuine charity. You'll need your governing document, trustee details, and information about your planned activities.

Register your charity

Step-by-step guide to registering with the Charity Commission, including governing document requirements.
Tips for faster registration
- Use model governing documents - applications using Charity Commission templates are processed faster
- Be specific about purposes - vague or overly broad charitable objects cause delays
- Provide complete information - missing details result in queries
Understand trustee duties

Once registered, trustees have six key legal duties under the Charities Act 2011. These are not optional - failure to comply can result in personal liability and Commission action.

The six trustee duties

All trustees must understand and follow these duties from Charity Commission guidance CC3.

Charity trustees are persons having the general control and management of the administration of a charity. They may be known as directors, board members, governors, or committee members. The Charity Commission's CC3 guidance sets out six key duties that all trustees must follow.

Duty 1

Ensure your charity is carrying out its purposes for the public benefit

Duty 2

Comply with your charity's governing document and the law

Duty 3

Act in your charity's best interests

Duty 4

Manage your charity's resources responsibly

Duty 5

Act with reasonable care and skill

Duty 6

Ensure your charity is accountable

Duty 1 - Purposes and public benefit
Trustees must understand and keep to the charity's stated objectives. Activities must serve an identifiable public benefit.
Duty 2 - Compliance
Trustees must follow the governing document (constitution, trust deed, or articles) and comply with the Charities Act 2011, employment law, health and safety, data protection, and other relevant legislation. Annual returns and accounts must be filed with the Charity Commission.
Duty 3 - Best interests
Decisions must be made solely benefiting the charity. Trustees must avoid conflicts of interest, put the charity's interests before personal interests, and act collectively as a board.
Duty 4 - Resource management
Trustees must protect charity assets (money, property, reputation), use resources only for charitable purposes, avoid undue risks, and implement appropriate financial controls.
Duty 5 - Care and skill
Trustees must use reasonable care and skill in decision-making. Those with professional expertise (solicitors, accountants) are expected to apply their specialist skills. Trustees should take appropriate professional advice when necessary.
Duty 6 - Accountability
Trustees must submit annual returns and accounts, make information available to the public, and report serious incidents to the Charity Commission.

CC3 - The Essential Trustee guidance (opens in a new tab)

Charity trustee duties

Full guide to trustee responsibilities including eligibility, conflicts of interest, liability, and remuneration.

gov.uk
CC3 - The Essential Trustee (opens in a new tab)

The Charity Commission's core guidance on trustee duties - essential reading for all trustees.
Set up financial management
Charities must prepare annual accounts and file them with the Charity Commission. Requirements depend on your income level - smaller charities can use simpler receipts and payments accounts.

Prepare charity accounts using SORP

How to prepare accounts following the Statement of Recommended Practice, including audit and examination requirements.
Ongoing financial obligations
- Annual accounts - due within 10 months of your financial year end
- Annual return - update the Charity Commission on your activities
- Trustees' annual report - explain what you've achieved and how
Claim Gift Aid on donations
Once registered, you can claim Gift Aid to boost donations by 25%. This is a separate registration with HMRC - not automatic with Charity Commission registration.

Gift Aid rates

Gift Aid lets you reclaim basic rate tax on donations from UK taxpayers.

Basic rate reclaim

25p per £1 donated (25% gross-up)

Calculation basis

20% basic rate / 80% net = 25% gross-up

Example - £100 donation

Charity claims £25 from HMRC, receives £125 total

Effective date

Current (ongoing scheme)

Claim Gift Aid (opens in a new tab)

Claim Gift Aid on donations

How to register with HMRC, collect valid declarations, and claim Gift Aid including GASDS for small donations.
Other tax reliefs for charities

Registered charities can also benefit from:
- Business rates relief - mandatory 80% relief on premises used for charitable purposes
- Corporation Tax exemption - on income applied to charitable purposes
- Stamp Duty Land Tax relief - on property purchases for charitable use
- VAT reliefs - some supplies to charities are zero-rated
gov.uk
Charities and tax (opens in a new tab)

Overview of all tax reliefs available to registered charities.

Ongoing compliance

Running a charity creates continuing obligations. Missing deadlines or failing to report serious incidents can result in Charity Commission action.

Key annual requirements

File annual return - due within 10 months of financial year end
Submit accounts and trustees' report - with the annual return
Keep register entry updated - report changes to trustees, contact details, or governing document

Serious incident reporting

You must report serious incidents to the Charity Commission promptly - including fraud, significant financial loss, safeguarding concerns, and criminal activity affecting the charity.

gov.uk

Report a serious incident (opens in a new tab)

What counts as a serious incident and how to report to the Charity Commission.

Set up a charity

Is a charity the right structure?

Check your purposes are charitable

Public benefit requirement

Choose your charity structure

Which structure suits your charity?

Check if you need to register

Appoint trustees

Register with the Charity Commission

Tips for faster registration

Understand trustee duties

Set up financial management

Ongoing financial obligations

Claim Gift Aid on donations

Other tax reliefs for charities

Ongoing compliance

Key annual requirements

Serious incident reporting

Related journeys

Set up a community interest company (CIC)