Start Here: Charity or Not-for-Profit?

This is the starting point if you are thinking about setting up a charity or are not sure whether the organisation you have in mind should be a charity at all. It is written for people who know what they want to achieve but may not yet know the legal names for the options open to them.

Charity or not-for-profit: why does the distinction matter?

Not every organisation that does good is a charity. A charity must exist only for purposes that the law recognises as charitable and must operate for the public benefit. In return it is regulated by the Charity Commission and its trustees take on specific legal duties. A members' club, a community group or a social enterprise can be run on a not-for-profit basis without being a charity and many are.

Getting this decision right at the outset matters because it determines which governing document you need, who regulates you, what you must file each year and how much freedom you have over the use of funds.

Where do I go next?

The Choosing Whether and How to Set Up a Charity section contains the guidance notes and formation checklists for deciding whether a charity is right for you and, if it is, which legal structure to use.

Once you have chosen a structure, the governing documents themselves are in the Set Up Your Charity section. If your organisation will be a members' club or another not-for-profit body rather than a charity, use the Clubs and Other Not-for-Profit Organisations section instead.

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