How to Start a Charity in the UK: A Step-by-Step Guide
Every charity starts with wanting to make a difference, whether that’s supporting a cause close to your heart or turning an idea into something real. Figuring out how to start a charity can be a little daunting at first, as you’ll need to tick off a few official boxes.
You’ll need to show your purpose is charitable and for public benefit, recruit at least three trustees, and choose a structure, like a Charitable Incorporated Organisation (CIO), a charitable company, or a trust. From there, it’s a case of writing a governing document and picking a name. Once your income passes £5,000, you’ll also need to register with the Charity Commission, or straight away if you’re a CIO.
That might all sound complicated, but don’t worry. In this guide, we’ll walk you through how to set up a charity in the UK, from your idea to officially registering it and creating real impact. Everything here follows the guidance of the Charity Commission and Gov.uk and applies if you’re setting up your charity in England or Wales.
The six steps to set up a charity
The Charity Commission lays out six official steps for how to start a charity in the UK, and they apply across England and Wales. Work through these in order, and you’ll have everything covered before you register. Here’s how to set up a charity, step by step.
1. Find trustees
You’ll need trustees before anything else; these are the people who’ll help bring your charity’s mission to life. Most charities have at least three, and together they guide decisions and keep things running in the charity’s best interests.
2. Make sure the purposes are charitable and for public benefit
Your charity will need a clear purpose. Whether that’s supporting your local community, improving wellbeing, or protecting the environment, it has to benefit the wider public, not just a private group of people.
3. Choose a name
Choose a name that’s clear, memorable and reflects what your charity stands for. It can help people connect with your cause and is something the Charity Commission will check when you register.
4. Choose a structure
Decide whether a CIO, charitable company, trust, or unincorporated association fits best. This affects how your charity is run, the responsibilities involved and the legal protection available to trustees.
If you’re not sure on this part yet, don’t worry; we’ll break down exactly what each of these structures means a little further down.
5. Create a governing document.
This will set out your charity’s purpose and aims, how it’s run, and what your trustees can and can’t do. It works as a kind of rulebook for your charity.
6. Register if required
If your income is over £5,000 a year, or you’ve chosen a CIO structure, you’ll need to register with the Charity Commission.
Charity structures compared
There isn’t a one-size-fits-all rule when it comes to choosing your charity’s structure. Some structures are built for charities that want to grow and take on staff; others suit smaller, simpler setups perfectly well. The right fit depends on things like your charity’s size and mission.
None of these choices are permanent either, and plenty of charities change structure as they grow. Here’s a quick rundown of the four main options:
Charitable incorporated organisation (CIO)
A CIO is a structure built specifically for charities, and it’s only regulated by the Charity Commission, not Companies House. That means less duplicate reporting. You’ll need to register a CIO regardless of your income, and it’s become the most common choice for new charities because it’s straightforward to run and is only regulated by the Charity Commission.
Charitable company
A charitable company is limited by guarantee, and it answers to both the Charity Commission and Companies House. It gives your trustees limited liability, but comes with more admin than a CIO, as you’ll file separately with each regulator.
Charitable trust
A charitable trust is a simpler setup, often used for grant-giving rather than running services day to day.
This structure can work well for smaller charities that won’t employ staff or own property. Just keep in mind that trustees don’t get limited liability with this option.
Unincorporated association
This is the simplest, lowest-cost option, and it works well for small community groups run by their own members. There’s no separate legal identity, though, so members can be personally liable, which is worth weighing up before you commit.
Trustees: who runs the charity
Trustees help steer your charity in the right direction. They hold ultimate legal responsibility for the charity and make sure it stays focused on its purpose and beneficiaries, even if they aren’t involved in its day-to-day activities.
Most charities need at least three, though your governing document will set out the exact number you’re working with. Understanding how to set up a charity starts with getting the right trustees in place. Trustees are often:
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Unpaid volunteers
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Legally responsible for the charity’s decisions and strategy
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Required to act in the charity’s best interests at all times
When you must register with the Charity Commission
You may be wondering, ‘Do I need to register my charity?’, the answer depends on your circumstances.
If your income is over £5,000 a year, you will need to register with the Charity Commission for England and Wales. If you’ve set up a CIO, you will need to register straight away, regardless of your income.
Charities based in Scotland register with OSCR instead, while charities in Northern Ireland register with the Charity Commission for Northern Ireland. The rules differ slightly by nation, so check which regulator applies to you before you start the process.
Starting a charity with little or no money
You don’t need money in the bank to start a charity. What you do need is a clear charitable purpose, a group of committed trustees, and a governing document.
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A charitable purpose that benefits the public
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At least three trustees willing to commit
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A governing document, even a simple one will do
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A plan for how you’ll raise funds once you’re set up
Many charities start small, build support through fundraising and only register once they’re required to do so. You can set up a fundraising page to bring in your first donations, and once you’re registered, Gift Aid means every eligible donation to your cause will go further at no extra cost to your supporters.
Ready to turn your idea into action? Create a fundraising page today and start building support for your cause.
When to set up a charity vs when to crowdfund?
If you’re supporting a one-off cause or a short-term need, crowdfunding is usually faster and simpler than setting up a charity from scratch.
Starting a charity is usually the right choice if you’re working towards a long-term mission rather than a single fundraising goal, like providing a service or supporting a long-term cause. If you’re committed to supporting that cause for years to come, a charity may be a good option for you. Crowdfunding tends to suit more specific, short-term goals, like funding a single project. Both can create meaningful change. The best option depends on whether you’re supporting a long-term cause or funding a specific need.
Starting a charity: your questions answered
If you’re keen to set up a charity of your own but still have some questions, take a look below:
There’s no set amount you need to start a charity in the UK, and starting a charity with no money is absolutely possible. You only have to register with the Charity Commission once your income passes £5,000 a year (or immediately for a CIO), and plenty of charities start small and fundraise in their early years.
Most charities need at least three trustees, and your governing document sets the exact number for yours. Trustees are usually unpaid volunteers and are in charge of running the charity.
A CIO is regulated only by the Charity Commission, which usually means less reporting. A charitable company must report to both the Charity Commission and to Companies House.
Yes, if your income is over £5,000 a year, or straight away if you’ve set up as a CIO. Charities in Scotland must register with OSCR, and those in Northern Ireland go through the Charity Commission for Northern Ireland instead.
Yes, all you need is a charitable purpose, trustees, and a governing document. Many charities start small and fundraise before ever needing to register.
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