Considering philanthropy?

Turn your vision into reality

In this article series, we’re looking at the steps you need to consider to make your philanthropic vision a reality. In the first part of our series we take a look at charitable structures and the questions you need to consider.

Charitable structures – choosing the best fit for you

You want to make a difference in the world and have made the decision to support charitable causes but which legal structure can best support the operation of your charity? There are a number of different structures that can be formed to further your philanthropic goals, each with their own characteristics. Choosing the right one for you will depend on the specific circumstances.

Some of the key considerations will be:

What is the purpose of the charity? Are you already involved with the arts, education or the environment? Or perhaps you wish to expand your philanthropic goals over a period of time. We can help guide you on the most practical arrangement to meet your objectives.

Who will be responsible for the day to day running of the entity? Choosing the right people to manage your charity is a key consideration for success. Our specialist team can assist with the day to day administration leaving you to focus on the causes that mean the most to you.

Will the charity employ staff? There are additional considerations to be made if staff are employed, including awareness and compliance with relevant employment law and charity commission rules.

Is there an intention to enter into any contractual agreements or own land? These types of arrangements can carry additional personal risks to the trustees and so it is essential that the structure of the charity takes into account the type of assets and work the charity will be involved with.

What are the intended assets and how will they be managed? When supporting charitable causes, asset management is an important consideration. The trustees will be responsible for ensuring that investment decisions are made to further the charity’s purposes and those managing the charity will need to take appropriate steps and advice for the benefit of the charity.

Succession planning – the future of the charity, involving future generations? Do you have friends and/or family already keen to be involved? And if so, how would you wish the charity to be managed in the long term? We can go through the options with you and provide detailed advice to ensure you make the right choice.

Once the optimum structure for you has been decided, thought needs to be given to the formal set up, registration and ongoing management of the charity. This will include applications to register with HMRC, either (or both) Companies House and The Charity Commission, putting in place suitable governance policies and ensuring the appropriate controls are in place for effective management.

The charity team at TLT can advise on every step of the process including advice for trustees, providing ongoing administration assistance, due diligence advice and professional trusteeship if required, enabling you to focus on the purposes that mean the most to you. If you wish to consider your options in more detail, please contact a member of the team.

The next article in our series will cover what to do next after choosing your charity structure.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at December 2024. Specific advice should be sought for specific cases. For more information see our terms & conditions.

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