Creating and running a charity

There are a number of methods of creating a charity from the large incorporated company to a local trust, perhaps set up under a will or to further a specific community aim. After the charity has been created, there are obligations that it must comply with emanating from charity law, company law and common law as well as from their own governing document.

Setting up a charity

Charities are established for a number of reasons—some for a one-off purpose and others for a long term project, possibly to fulfil a charitable need that is perceived to exist or to have missed by existing charities.

The following points will need to be considered when setting up a charity:

•
objects—what is/are the purposes(s) of the proposed charity? Unless an institution is established for charitable purposes only, it will not be a charity. See: Charitable purposes—quick guide for further information about charitable purposes
•
structure—there are a number of structures that are available. See Overview: Charitable and community companies for information about charitable companies, unincorporated associations, community interest companies, unregistered companies, co-operative and community benefit societies

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