The decision to create or form a new charity is a big decision to make, but in certain scenarios it might not be the best option available to you and there might be other options that you need to consider first.
Is creating a new charity the best option for you?
The Charity Commission has issued new guidance which provides advice to members of the general public on whether creating a new charity is the best option for their circumstances.
The guidance, which was published on 12th September 2018, has provided the following advice which people or organisations need to consider before setting-up a charity:
- Consider all the alternative options available, such as a Community Interest Company (CIC) or a different type of social enterprise. Additionally, look into any provisions provided by any established charities, whereby you can raise funds via a named fund for a single fundraising initiative, e.g. raising money for an illness, or national or international disaster.
- Look to see if there are already any registered charities who are already doing what you are looking to achieve.
- Check over the legal restrictions that registered charities need to abide with and ascertain whether these restrictions will stop you from achieving your charities objectives.
Whilst the guidance issued is not trying to stop members of the general public from forming new charities, it appears to be raising awareness of the intricacies of creating a new charity, which can often be costly and time-consuming, and is encouraging people, if possible, to work with existing registered charities.
How can Nelsons help?
Our Charity Solicitors have specialist and in-depth experience in advising and acting for a broad range of charitable organisations. We can advise on the formation of a new charitable organisation or change an existing organisation to the new form of a charitable entity.
If you require any advice, please call a member of the team on 0800 024 1976 or contact us via our online form.