Forming a Charity

In order to be recognised in law as a charity, an organisation must demonstrate that its objectives fall within one or more of the 13 'Charitable Purposes' and that it operates for the benefit of the public.

 

It must be clear what the benefits of the charity to the public are, the benefits should be related to the aims of the charity, any beneficiaries should be appropriate to the aims of the charity, any section of the public that is not intended to benefit from the charity should not be unreasonably restricted by geography or ability to pay fees from benefiting and those in poverty should not be excluded from the opportunity to benefit.

 

In practice, this can seem a bit difficult to comprehend but, the duties of trustees to show the public benefit aspect of their charity upon formation and their ongoing obligation to report on the public benefit of the charity are very real. We can advise upon your organisations objectives and whether they will meet the public benefit test. For example, if the beneficiaries of your charitable work are too narrow it is possible that a private trust may be created rather than a charitable trust.