Setting Up & Managing a Charity

Our charity lawyers have decades of experience in setting up charitable organisations and advising trustees on running charities and not-for-profit organisations across a wide range of sectors.

Our aim is always to provide information to trustees that enables them to decide what is the most optimal type of charitable entity for them to set up. After determining the most appropriate legal entity type, we assist with registration with the Charity Commission and day-to-day charity governance and management. We always aim to take a practical approach when providing legal support to make the process of setting up and running a charity as straightforward as possible for the trustees.

We have strong links with the Charity Commission, Privy Council Office, Department for Education, and HMRC, enabling us to better represent the needs of our clients and keep fully up to date with policy developments.

We have experience in advising charities working across the entire spectrum, including:

animal welfare;
arts, heritage and theatre;
community development;
educational;
environmental;
grant-making;
heritage and arts;
medical;
public sector services;
recreation and sports;
regeneration;
religion;
science and research;
welfare, aid and the relief of poverty.

Our outstanding expertise is also recognised by Legal 500. The legal directory ranks LBMW as a leading Charity and Not for Profit law firm, and the head of our team, Khalid Sofi, is also recognised as a Leading Partner by the directory.

Contact our expert charity lawyers today

If you require any assistance with setting up a charity or running a charity, contact our expert charity lawyers:

Phone no.: 0207 222 5381

Email: khalid.sofi@lbmw.com.

You can also make an enquiry by filling out the Enquiry Form on www.lbmw.com.

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How Lee Bolton Monier Williams's Charity Law Solicitors can help you to set up and run your charity

Setting up and registration with the Commission

Setting up and registering a charity is a complex legal process. A charity's legal structure, as well as its constitutional and governance provisions must be effective to enable it to function at optimal ability in an often challenging regulatory and commercial environment.

Our experienced team of charity lawyers have a depth of knowledge of regulatory and compliance requirements and support clients through each stage of setting up and registering a charity, including:

Determining the most appropriate legal structure for a charity;
Drafting the charity's governing document, including the formulation of charitable objects;
Advising on governance, trustee duties, conflicts of interest and safeguarding;
Assisting with understanding and demonstrating the 'public benefit' requirement;
Advising on tax exemptions and reliefs available, including Gift Aid;
Applying for charity registration with the Charity Commission;
Providing ongoing support with running a charity, including governance, risk management and compliance with the law.

Managing a charity

With the regulatory and compliance requirements in this sector constantly developing, we understand how important it is for charity trustees and staff to understand their duties and responsibilities when running a charity.

We offer a full range of legal services to help charities in their day-to-day functions as well as when specific issues arise, including advice relating to:

Charity land and property;
Commercial interests;
Compliance and regulatory requirements;
Handling conflicts of interest;
Constitutional structures and amendments;
Data protection and freedom of information;
Dispute resolution;
Employment;
Fundraising and legacies;
Intellectual Property;
Mergers and winding-up;
Policies;
Public benefit criteria;
Restricted funds and permanent endowment;
Safeguarding;
Gift Aid;
Trading companies;
Trustees working internationally.

We also offer a charity secretarial service, such as filing returns or preparing resolutions.

Why choose LBMW as your charity lawyers?

We are recognised as one of the leading charity law firms in the country.

All our charity lawyers are members of the Charity Law Association and are engaged widely in the sector either as members of CLA working groups, trustees, school governors or advisors.

We also have strong links with the Charity Commission, Privy Council and other stakeholders and run seminars throughout the year examining the latest challenges and opportunities posed by the ever-changing legal and regulatory landscape.

Therefore, our depth of knowledge, long-standing expertise in the field, our full-service approach, and our strong engagement with the sector makes us stand out.

Frequently asked questions about setting up a charity

What is involved in setting up a charity?

Creating a charity or nonprofit organisation consists of several important steps:

As a first step, trustees must be recruited. A trustee board should consist of at least 3 or more individuals who will be able to fulfil a trustee's duties and responsibilities.
The trustees need to identify the organisation's charitable purpose, which must be for the 'public benefit', as defined by the Regulator.
The trustees then need to choose a name and a structure for the charity. A charity's legal structure is crucial in making sure that the organisation functions at optimal ability.
Once the charity's structure has been chosen, a governing document needs to be drafted.
The charity then can register on the Charity Commission's public register.

What is a registered charity?

A charity, which is registered with the Charity Commission, the Regulator of charitable organisations in England and Wales, is a registered charity.

While certain exempt or excepted charities don't need to register with the Charity Commission, generally, a charitable organisation must register if its income exceeds £5,000.

Once the organisation is registered, its details appear on the register of charities maintained by the Commission. The trustees of the registered organisation have a duty to notify the Regulator about changes to the organisation, including changes to its governing document or details entered onto the register.

How to register a charity in the UK?

All charities with an income of over £5,000 must apply to register with the Charity Commission by using the Regulator's "Apply to register a charity" service. The application form asks a number of questions relating to the charity's activities, its trustees, income and its governing document.

In the application, the applicant must satisfy the Commission that the charity operates for the public benefit, and that the trustees understand their duties and responsibilities.

Our experienced charity lawyers can provide tailored legal advice to assist with the application to register a charity, as well as with understanding why an application got rejected, addressing the reasons for rejection and then re-application.

What are the alternatives to setting up a charity?

If setting up a charity is not exactly what you had in mind, there are several alternative options which would still enable you to benefit a certain cause.

Our expert charity lawyers can provide advice in relation to each of these options, including: