How to Start a Charity

Learn how to start a charity in the UK, from choosing a structure and finding trustees to registering with the Charity Commission and raising funds.

Starting a charity is a meaningful way to make a difference – whether you’re tackling poverty, supporting mental health, promoting education, or helping the environment. In the UK, charities must meet strict legal requirements, but with the right preparation, anyone can set up and run a successful charitable organisation.

This guide walks you through everything from choosing the right structure to registering your charity and managing it responsibly.

What Is a Non-Profit Organisation?

A non-profit organisation (NPO) is an entity that does not exist to generate profit for owners or shareholders. Instead, all income is reinvested into its mission. In the UK, not all non-profits are registered charities, but all charities are non-profits.

You can run a community group, CIC (community interest company), or social enterprise without registering as a charity – but becoming a registered charity gives tax advantages and public trust.

Can You Make Money from a Non-Profit?

Yes – a non-profit can generate income, and employees, including directors and staff, can be paid a salary. What you can’t do is distribute profits to individuals. All surplus must be reinvested to support the charity’s stated aims.

How Does a Non-Profit Generate Revenue?

Non-profits and charities generate income through:

  • Public donations

  • Grants and funding from local councils or national bodies

  • Gift Aid on eligible donations

  • Events and fundraising campaigns

  • Trading activities (e.g. charity shops)

  • Membership fees or service charges

Most charities rely on multiple income streams to stay sustainable.

Types of Non-Profit Organisations

Before starting a charity, it’s worth understanding the types of organisations available:

  • Charitable Incorporated Organisation (CIO) – a legal entity with limited liability and charity status

  • Charitable Company (limited by guarantee) – a company registered with Companies House and the Charity Commission

  • Unincorporated Association – simple to set up but offers no legal protection

  • Trust – managed by appointed trustees, often used for grant-making charities

  • Community Interest Company (CIC) – not a charity, but used for social enterprises

Each structure has pros and cons depending on your size, aims, and level of risk.

Eligibility to Register as a Charity

To register as a charity in England and Wales, your organisation must:

  • Be established for charitable purposes only

  • Exist to benefit the public

  • Have an income of over £5,000 per year, unless you're applying to be a CIO

  • Not exist to make profit for private individuals

Common charitable purposes include education, poverty relief, religion, animal welfare, health, and amateur sport.

How Do I Start a Non-Profit or Charity Organisation?

  1. Define your charitable purpose – Be specific. It must fit within the list of purposes recognised by the Charity Commission.

  2. Choose a name – Make sure it’s not offensive, misleading or already taken.

  3. Decide your structure – CIOs are popular as they offer legal protection without needing to register with Companies House.

  4. Create a governing document – This is your constitution or articles of association. Templates are available from the Charity Commission.

  5. Recruit trustees – You’ll need at least three unrelated trustees. They must be over 18 and not disqualified (e.g. bankrupt or criminally convicted in some cases).

  6. Register with the Charity Commission – You’ll need to submit details about your charity’s structure, finances, trustees and objectives.

How to Choose a Charity Structure

The right structure depends on:

  • Whether you want to own property or employ staff

  • If you need legal protection (limited liability)

  • How much money you expect to raise or manage

A CIO is the most popular modern option for small-to-medium charities. If you already have a company, you might consider a charitable company instead.

How to Find Trustees

You’ll need a group of people who are:

  • Committed to your cause

  • Willing to give their time

  • Responsible and trustworthy

You can find trustees through:

  • Personal and professional networks

  • Trustee recruitment websites like Reach Volunteering or Getting On Board

  • Local volunteering centres or community networks

You must provide their full names, dates of birth and addresses when registering.

Where to Register Your Charity

  • In England and Wales, register with the Charity Commission at www.gov.uk/charity-commission

  • In Scotland, register with OSCR (Office of the Scottish Charity Regulator)

  • In Northern Ireland, apply via the Charity Commission for Northern Ireland (CCNI)

Registration can take several weeks and you’ll need to provide supporting documents, including your governing document and financial plan.

Final Thoughts

Starting a charity in the UK takes time and planning, but it’s a powerful way to support a cause you care about. Choosing the right structure, recruiting trustees, and following the legal process are crucial steps.

Once registered, you’ll benefit from tax reliefs, public trust and access to charitable funding. If you’re not sure whether a full charity is right for your project, consider starting small with a non-profit group and scaling from there.

Always refer to the Charity Commission’s official guidance or seek legal support if your plans are complex or involve substantial assets.