Structuring Not-for-Profit Operations in the UK by Jones Elizabeth & Smith Julian

Author:Jones, Elizabeth & Smith, Julian [Jones, Elizabeth]
Language: eng
Format: epub
Publisher: Social Partnership Marketing LLP
Published: 2012-04-30T16:00:00+00:00

4

STATUTORY REGISTRATIONS

Overview – The Charity Commission – HMRC - Others

Overview

Charitable status is determined by whether an organisation has objects that are charitable. Registration with the Charity Commission does not confer charitable status, it merely confirms it. Although this is the strict legal position, in practice if an organisation is not registered with the Charity Commission it will find it extremely difficult to raise money and almost impossible to claim charitable tax reliefs.

Consequently, registration with the Charity Commission is usually a first step prior to undertaking any fundraising or other activities as a charity.

The Charity Commission

The Charity Commission is the regulator of charities and has extensive powers over both registered charities and those few charities (which are mainly universities, some maintained schools and colleges, providers of social housing and national museums and galleries) that are exempt from registration. Registration as a charity is only required once a charity’s income exceeds £5,000 a year. The Charity Commission requires evidence to be supplied at registration showing the charity’s income will exceed this level.

Prior to applying to register it is advisable to read the Charity Commission’s Guidance CC21 – Registering as a Charity (available on its website), which provides further details on the registration process and charitable status.

Registration is undertaken online via the Charity Commission’s website 7 . The Charity Commission requires information to be provided on:

(a) Objects

(b) Activities

(c) Public benefit that will be provided in pursuing those activities

(d) Estimated income in the first year and the means by which the charity will raise funds

(e) The trustees (each must provide their name, residential address, phone number, email address (optional), date of birth, details of other trusteeships)

(f) Confirmation of whether the charity will work with children or vulnerable adults, and if so whether the trustees will be vetted (in the UK this is usually undertaken through a Criminal Records Bureau check but other regimes may be available for trustees based outside of the UK)

(g) Details of any benefits provided to trustees (e.g. any intention to pay trustees to provide services to the charity or any person connected to a trustee who may be employed by the charity or otherwise provide services to it).

When applying for charitable status via the Charity Commission’s website the following documents will need to be scanned in and provided to the Charity Commission.

(a) A copy of the governing document

(b) Certificate of Incorporation (for companies only)

(c) Trustee declaration signed by each of the first trustees

(d) Copy of the bank statement showing a balance exceeding £5,000 or a pledge for at least £5,000.

HMRC

Registration with HMRC enables charities established in the UK to reclaim gift aid and claim other charitable tax reliefs. Registration is also possible for charities (that would qualify as such were they set up in the UK) established elsewhere in the European Economic Area (EEA). Further information on registration of charities set up elsewhere in the EEA is in Part 7.

Charities registered with the Charity Commission will usually find securing registration with HMRC to be straightforward.

Registration is undertaken through completing HMRC form CHA1 8 .

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