Setting up a Charitable Trust or setting up a Charitable Company Limited by Guarantee are ways of setting up a Charity so you can:-
- Support your chosen cause in a tax-efficient way
- Leave a lasting legacy because a Charitable Trust can run indefinitely
A Charitable Trust is run by Trustees according to the Trust Deed:-
- This is suitable for simple Trusts involving a few people in decision making process
- Trustees are jointly and severally liable to the charity's creditors
If the charity is more complex then personal liability may be unattractive to the Trustees so you can establish a charity as a Company Limited by Guarantee:-
- Members give a small token sum guarantee
- The directors (the trustees) control the running of the charity
- Members can also be Directors
A charitable company has to:-
- Be registered at Companies House and at the Charity Commission
- Report to the Charity Commission and to Companies House
- Comply with both Charity Law and Company Law
The Charity Commission:-
- Charities with an annual income over £5,000 must be registered
- Smaller charities need not register but will need a tax reference from HMRC to enable donors to claim Gift Aid
Please contact us to discuss how our Trusts Team can help you in setting up a Charitable Trust.
