Forming a Charity
The Structure of your Charity
Charities can have different structures. The one best suited to an individual charity will depend largely on the charitable purpose, the volunteers and trustees involved and the day-to-day running of the charity. We can help you to understand the varying structures and discuss which may be more suitable for your purposes although of course, the tax implications of each structure will also have to be considered.
Trusts:
Usually a charity formed by way of trust is governed by one or more deed or declaration of trust. It may also be governed by a Charity Commission Scheme. Sometimes the trust has been created by a Will. It could also be possible that a trust is created where for example property has been devoted to a charitable purpose for a long time but the original deed or document creating the trust cannot be found.
Unincorporated Associations:
These are usually governed by a written constitution or set of rules. These form a type of contract between the members. Again it is possible for this type of charity to be formed even where there is no written set of rules. Often the people who carry out the day-to-day management of the charity and are referred to as the board or committee are the trustees.
Companies:
Although set up as a company limited by guarantee, charitable companies are run by directors, have articles of association and are bound by all the same rules as ordinary profit making companies (save those relating to tax.)
In addition to the various legal forms that a charity may take, there are also Social Enterprises which give rise to further structures.
Charitable Incorporated Associations (CIO's):
This is the future of charity structures! As such, we have devoted a whole page to it - please
click here for more information.
