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Setting up a Charity and Charity Constitutions

What key issues relate to setting up a charity?

The first steps when planning to set up a new charity are to:

  • decide whether it is necessary and appropriate to set up a charity
  • check whether what you intend to set up will in law amount to a charity
  • how to set up a charity 
  • the particular circumstances and factors that you should take into account when planning to set up your charity 
  • the type of legal structure you should adopt for that purpose
  • the particular legal requirements that apply (under charity, trust, and/or company law) to the structure that you choose to adopt

It is essential for founders of a charity to consider and resolve all of these issues at the outset. The documents in this group include guidance notes which can assist.

Types of legal structure for a charity

The different legal structures which a charity can adopt are as follows: charitable company limited by guarantee, unincorporated association, charitable trust, or charitable incorporated organisation (CIO).

This group of documents includes checklists for each type of structure to: 

  • help you decide on the appropriate structure
  • guide you through the legal requirements applicable each type of structure 

Constitutions for each of type of structure 

This group contains a range of template constitutions for the various types of structure. 

Once you have decided on the type of structure to be adopted, select the appropriate template, and then adapt it as necessary. 

We recommend, however, that before you decide to use any particular template, you should read its document description to ensure that it will be suitable for your purposes. The various constitution template document descriptions accompanying each template consider some of the factors to be considered in thatr connection. 

We also recommend that you take legal advice before finally deciding on the type of legal structure to adopt, the template to be used, and how it should be adapted.

Amending a charity’s constitution

If your charity intends to amend its constitution at any time, it will need to pass the necessary resolutions in order to do so. Template forms of minutes of such resolutions for this purpose are included in this group of template documents.

Setting up a Charity and Charity Constitutions is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.

Frequently Asked Questions

I want to start a charity. What is the first thing I need to decide? +
Decide first whether a charity is the right vehicle at all, then whether what you plan to do is charitable in law, and only then which structure to use. To be a charity an organisation must have exclusively charitable purposes for the public benefit. The four structures are a charitable company, a charitable incorporated organisation (CIO), an unincorporated charitable association and a charitable trust. Simply-Docs provides guidance notes and a formation checklist for each route.
What are the four types of charity structure and how do I choose between them? +
A charitable company and a CIO are incorporated, so the charity is a separate legal body and trustees have limited liability. An unincorporated association and a charitable trust are not incorporated, so trustees can be personally liable and the charity cannot hold property in its own name. Choose an incorporated structure if the charity will employ staff, hold property or enter contracts, and an unincorporated one for a smaller, simpler charity. Simply-Docs has a constitution template for each.
Do I have to register my new charity with the Charity Commission? +
Usually yes if it is based in England or Wales and its annual income is over £5,000, but a CIO must register whatever its income because it only exists once registered. Some charities are excepted or exempt from registration. Registering brings public benefit and reporting duties. Simply-Docs provides formation checklists that walk you through what the Charity Commission needs for each structure.
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