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Starting A Charity

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Myself and a close friend are wanting to start a charity.

We have been reading on the Charity commision web site.

Am I reading it correctly that you need to have generated £5000 in income before you can register?

I don't quite understand this as...surely in order to generate the 5k you need to go out fundraising, most people surely wont be comfortable in donating to an organisation which isnt a registered charity?

Thanks in advance :)

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I think it's that you don't NEED to register as a charity until you've generated that much. I think.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Franki wrote: »
    I think it's that you don't NEED to register as a charity until you've generated that much. I think.


    Ahh, cheers. Im trying to find the bit i read, im sure it said you have to send a bank statement/audited accounts/proof of funding in order to proof it will generate at least 5k pa.

    I may have read it wrong tho. Thanks agin.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    63. The minimum requirement for registration is that a charity must have an income of more than £5000 a year.

    64. Organisations with an annual income not exceeding £5000 from all sources will be able to seek voluntary registration when the part of the Charities Act 2006 that permits this comes into effect. We will publicise this on our website before it happens. Until then the Commission’s priority is to complete the programme of registering previously excepted and exempt charities: we are not required to register a prospective charity that cannot demonstrate that it has already achieved the minimum income.

    65. We will only consider an application for registration from an organisation below the minimum income in exceptional circumstances. Examples of when we might do this are:

    high profile organisations likely to receive significant funding in a very short time and where public confidence in charity would be diminished if we were not seen to be exercising our regulatory function;
    where the organisation can provide specific evidence that significant grant funding rests upon it being a registered charity.
    66. We will not consider an application simply because the trustees think they will have difficulty in attracting funding without a registered charity number. There are other ways in which the organisation can establish its credibility. For example, for small charities HMRC will assess whether tax relief can be given. An HMRC number will provide the evidence of charitable status. Alternatively you may wish to set up a named account with an existing charity until you have achieved the required level of income.

    67. If your organisation has less than the minimum income do NOT submit an application until you have checked that we are prepared to consider this. You can email the Registration Unit or write to Charity Commission Direct explaining why you think we should look at your application.

    68. If you submit an application, and do not have either:

    the necessary evidence of income; or
    a letter or email from us confirming that we have agreed to assess the application;
    your application will be sent back to you to hold until such time as the charity has an income of more than £5000.

    69. For evidence of income we normally require one of the following:

    latest annual accounts;
    a bank statement; or
    a formal offer of funding
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