Expert advice on creating a charitable trust

Creating a charitable trust or 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 the 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

Contact us to discuss how our Trusts Team can help you in creating a charitable trust.

Find out how Nelsons can help you. Contact our friendly team for a guaranteed fast response.

For advice and support 0800 024 1976