Setting up a charity in Scotland

Understand OSCR and charity regulation in Scotland

Charities in Scotland are regulated by the Office of the Scottish Charity Regulator (OSCR) under the Charities and Trustee Investment (Scotland) Act 2005. OSCR maintains the Scottish Charity Register, monitors charity compliance, and can take enforcement action against charities that fail to meet their legal obligations. If your organisation will operate in Scotland and describe itself as a charity, you must register with OSCR -- regardless of whether you are also registered with the Charity Commission for England and Wales.

This learning path guides you from understanding the regulatory framework through to maintaining ongoing compliance after registration.

Check whether your organisation meets the charity test

To register as a Scottish charity, your organisation must pass the charity test set out in the 2005 Act. This means your purposes must fall within one or more of the 16 charitable purposes listed in the Act, and you must provide public benefit. OSCR assesses every application against these criteria. If your purposes are unclear or your governing document does not adequately restrict private benefit, OSCR will refuse registration. Review your proposed purposes carefully before applying.

Register with OSCR

OSCR registration is submitted online through their portal. You will need a governing document (constitution, trust deed, or articles of association) that meets OSCR requirements, details of your charity trustees, and a description of your planned activities. OSCR aims to process straightforward applications within 60 working days, but complex cases can take longer. There is no application fee. Once registered, your charity appears on the publicly searchable Scottish Charity Register with a unique SC number.

Understand your duties as a charity trustee

Charity trustees in Scotland have specific legal duties under the 2005 Act. You must act in the interests of the charity, manage its resources responsibly, and exercise reasonable care and diligence. Trustees who fail in their duties can face personal liability. OSCR expects trustees to understand their responsibilities from the outset, including managing conflicts of interest, safeguarding charity assets, and ensuring the charity operates within its stated purposes.

Meet annual reporting and accounts obligations

Every Scottish charity must submit an annual return and accounts to OSCR. The financial reporting requirements depend on your charity's income and whether it is also a company. Charities with income over 250,000 pounds must have their accounts independently examined or audited. The annual return confirms your charity's details and must be filed within nine months of your financial year end. Late filing or failure to file can result in OSCR taking regulatory action, including removal from the register.

Maintain ongoing compliance

Registration is not a one-off event. You must notify OSCR of significant changes such as amendments to your governing document, changes to trustees, or any reorganisation. OSCR conducts rolling reviews and may make inquiries if it has concerns about a charity's activities or governance. Keeping your compliance in order from the start reduces the risk of regulatory intervention and builds public trust in your charity.