Setting up a charity: getting started

In this article, we’re going to take a closer look at the detail around regulatory requirements for setting up a charity. See our previous article for more information on charitable structures and choosing the best fit for you.

Points to consider: How do you want to manage your charity?

This will include deciding on who should be trustee and how many trustees there should be. It’s important to consider suitability to ensure your charity benefits the most from the trustees’ expertise and you may wish to give thought to succession planning to encourage future generations to become involved. You should also consider the appointment of a professional trustee and the benefits that can provide from freeing up time to providing regulatory reassurance and guidance.

How involved do you want to be in the general administration?

You may want to be involved in every aspect, or you may prefer to hand over the day to day so that you can focus your attention on the causes that need your help. An important step in the general administration of the charity is putting policies in place to meet your requirements whilst also complying with the Charity Commission guidance. Your charity will need formal policies to cover matters such as investments, grant making, due diligence and more.

Will you be inviting grant applications?

If so, you may need assistance creating application forms, setting application deadlines, setting criteria, collating responses, responding and dealing with due diligence regarding payments.

What assets will your charity hold and how will they be managed?

Is there a lump sum that needs careful investing? Is it intended that the charity hold property? We work closely with banks, investment advisers and property agents to ensure a measured approach is taken, weighing the needs of the charity against the trustees’ duties and views.

Does your charity need to be registered with the Charity Commission?

Did you know only 48% of applications to register a new charity were successful in 2022-2023. The Charity Commission’s recent Annual Report stated that it received 8,583 applications to register a new charity during 2022-2023. Just under half of these were successful (48%). You may be surprised how low this is, given the time and effort which goes into completing the application form.

There are varying requirements for registration with the Charity Commission depending on the structure of your charity and careful consideration of the criteria is a key aspect when setting up your charity.

Our charity team understand that every charity is different and can help you through every step from setting up, to making those first all important grants that will change lives. We can provide you with bespoke governing documents to ensure your charity meets all regulatory requirements whilst fitting with your vision of what your charity will become.

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at February 2025. Specific advice should be sought for specific cases. For more information see our terms and conditions.

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