How much money do I need to start a charity?

Well, that’s a good question. We receive many enquiries about how much money is required to start a charity. The answer is, as much money as you can raise. The difficulty comes when trying register with the Charity Commission, as the Charities Act 2006 requires that to become a registered charity you need to have an income of £5000.

This doesn’t stop you starting a charity though and receiving all the financial benefits of a registered charity. As long as you have a suitable “governing document” and objectives that are “exclusively charitable” and demonstrate “public benefit” then, in law, you are a charity.

HMRC (the tax man) will then recognise you as a charity and you can receive all the tax benefits as a registered charity. Once you have started your charity you will be able to claim Gift Aid.

So, what is Gift Aid. Well, it’s money from the tax man, for free!! For every pound that is donated to you by your supporters , the charity can claim the tax back that person has paid, which means for your charity every £10 that is given to you, the tax man will give you and extra £2.50.

There are also other tax breaks available to charities.

So, what happens after we have started our charity and we achieve the magical £5000? Well, the good news is you can then apply to the Charity Commission to register as a charity with your own registered number. In fact, not only can you apply, the law says you have to apply.

So, how do you start your charity? Well, quite simply you can contact us and we can do it all, making it very simple for you. We can provide your governing document, with exclusively charitable objects that demonstrate public benefit. And what does this cost you? Well, we can provide a thoroughly professional and expert service for just £295, and the even better news is once you have raised £5000 we will deal with the fiddly application process with the Charity Commission for just another £100.

10 Responses to How much money do I need to start a charity?

  1. Khurram mushtaq February 14, 2013 at 3:13 pm #

    I am not of uk residence. I am interested in opening up my own charity, to help the community. Am I allowed to open up a charity here in the uk.
    Thanks

    • Andrew February 15, 2013 at 9:54 am #

      You can register a charity in the UK if the charity is based in the UK, it can carry out charitable activities anywhere in the world, but the charity must be managed from the UK.

  2. Dean April 20, 2013 at 1:18 pm #

    I’m looking to set up a charity in the UK for homelessness unemployed single mums parents who struggle to get by autism ect. Sohow will I go about that tostart with

    • Andrew April 21, 2013 at 7:42 pm #

      Hi Dean,

      I sent an email to the Miltonstreet email address, did it come through to you?

      This is basically what it said.

      Hi,

      many thanks for contacting us. I think that is a great idea you have to help homeless mothers and I think we should be able to get you registered as a charity.

      Before I go into details of how we can help, I thought it would be useful if I explained what is involved in becoming a charity.

      What makes a charity:

      In order to become a charity registered with the Charity Commission there are a few key legal requirements that need to be fulfilled:

      1. The charity must have “exclusively charitable objects”
      2. The charity must have a suitable “governing document”
      2. The charity must be for the “public benefit”
      4. If possible, £5000 in a bank account in the charity’s name.

      What we can do to help:

      We can provide advice on all matters relating to registration, many of which are legally complex.

      1. We have model “governing documents” to give your charity the right legal framework.
      2. We can provide just the right wording for your “charitable objectives”.
      3. We know how to demonstrate “public benefit” to meet the Charity Commission’s scrutiny.

      Finally, we can complete the application form and deal with all the correspondence from the Charity Commission.
      If you have less than £5000:

      Alternatively, if you do not currently have £5000 then we can still set you up as a charity, just not yet registered with the Charity Commission. We can register you HMRC (the taxman) and they will make Gift Aid payments despite you not being registered with the Charity Commission as long as you have “exclusively charitable objectives” in your “governing document”. Effectively, this means you are a charity, just one not yet registered.

      As mentioned above we can provide all the necessary documentation and correct legal wording to get you started with HMRC.

      You will not yet be able to open a “charity” bank account, however you can open a “Community” or “Treasurer’s” account and I have details of Banks that offer such a product.

      Next Steps:

      I have also attached a form for you to complete so we can get the ball rolling if you wish to take out one of our Packages.

      I appreciate that there is a lot to consider so please let me know if there is anything else I can help with.

      Yours sincerely

      Kind regards

      Andrew Butler
      Member of the Charity Law Association

      http://www.charityexpert.net

      Telephone 01823 420140 07530 143700
      © 2013 Charity Expert. All Rights Reserved : Registered Company No. 829231

  3. john April 23, 2013 at 10:35 am #

    hi, i wont to open my ong from here and in rep.demo. of congo for help the children and women how lost the husbund and parent during all this war in congo what should i do?

  4. Sally August 6, 2013 at 3:27 pm #

    Hi

    I wanted to know if I could set up a sister charity? The charity i support is abroad and I wanted to get it registered in the UK. How do I go about doing this?

    Thanks

    Sally

  5. Aishaa October 1, 2013 at 3:15 pm #

    I want to raise money from family and friends in my local community who are all happy to give. It’s for syria children and my county in Pakistan for a flood appeal can I do this. I hav a recite book too.

  6. Deborah December 10, 2013 at 2:47 pm #

    Hi

    I want to set up a charity helping all homeless people better their life, being it getting them back into education, a job or simply helping them help themselves to better their lives everyone deserves. This is something I want to start. Any help?

  7. Mina January 7, 2014 at 3:11 pm #

    Hi, I want to open a charity for the artists, like people who are not able to sell their paintings in the UK or other countries. Can I do that?
    Regards
    Mina

  8. John February 17, 2014 at 5:23 am #

    I am in planning process of setting up a charity. I have to do this as i wont be able to get the funding without it.
    However there is a problem.
    To be able to run the charity properly i will have to give up my current job which i enjoy.
    Therefore i will need a wage.
    Everyone i have spoken to from banks, CCG’s, Counselors, NHS colleagues all think it’s a brilliant idea but the information on the website of the charity commission looks as if it’s going to stop me from setting up the charity just because i want to commit myself to making sure it runs successfully for all concerned.
    How can i get a wage whilst still running the charity.

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