This blog discusses the frequently asked questions regarding charity law in England and Wales.
Question 1: Do all charities need to be registered with the Charity Commission (CC)?
No. The charity only needs to be registered with the CC if:
- Its income is over £5,000 per year or it is a charitable incorporated organisation (CIO);
- It is based in England/Wales.
Some charities do not need to be registered with the CC, such as universities, as they are regulated by other regulatory bodies.
Question 2: What are the types of charity structures?
There are 4 common charity structures:
- Charitable trust;
A group of trustees managing the assets. It cannot enter into contracts or own properties in its own right but in the names of the trustees.
- CIO;
It is an incorporated structure that does not require registration with Companies House (CH). The trustees have limited or no liability for CIO debts/liabilities.
- Charitable company; or
It needs to be registered with both the CH and CC and is controlled by a group of directors.
- Unincorporated charitable association.
A group of volunteers running it for a common purpose. It cannot employ staff or own properties.
Question 3: Is there any requirement for the majority of the trustees of a charitable trust registered with the CC to be resident in England and Wales?
No, the charitable trust can appoint someone resident outside of England and Wales as a charity trustee, including non-British nationals. However, he/she must meet the eligibility criteria:
- Must not be disqualified from serving as a trustee, such as having an unspent criminal conviction or having been declared bankrupt;
- Must meet minimum age requirements – being 18 or over or 16 or over if the charity is set up as a charitable company/CIO; and
- Must undergo the Disclosure and Barring Service checks (if necessary).
Question 4: How to name a charity?
The official name of a charity is known as its main name, and it can also have a working name. Some words require permission to be used, such as the name of a famous/copyrighted work/person, trademarks or royal titles. The words ‘charity’, ‘charities’ or ‘charitable’ can be used, but they require approval from the CC.
Question 5: How many trustees should a charity have?
It should be stated in the governing document regarding the minimum and maximum number of trustees the charity is required to have.
How can we help?
Ronny Tang is an Associate in our expert Dispute Resolution team, specialising in defamation claims, contentious probate and inheritance claims, Trusts of Land and Appointment of Trustees Act 1996 claims, Equality Act 2010 claims and Protection From Harassment 1997 claims.
If you need any advice concerning the subject discussed in this article, please do not hesitate to contact Ronny or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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