Charity Setup: How to Start a Trust or Non‑Profit in Simple Steps

Thinking about turning your good idea into a real charity? You don’t need a law degree or endless paperwork. Follow these clear steps and you’ll have a legal, tax‑benefit‑ready charity that can start making a difference fast.

First Steps – Planning and Legal Basics

Start with a solid mission statement. Write one sentence that tells exactly who you help, what you do, and why it matters. This sentence becomes the backbone of every form you file.

Next, check whether a charitable trust or a charitable incorporated organization (CIO) fits your goals. Trusts are good for holding assets and controlling how they’re used, while CIOs give you a separate legal identity and protect board members from personal liability.

Once you’ve chosen a structure, pick a name that isn’t already taken. A quick search on the Charity Commission website will save you time later. Then gather the core team – you need at least three trustees for a trust and three directors for a CIO. Choose people who bring different skills: finance, fundraising, and the cause you’re tackling.

Now comes the paperwork. For a charitable trust, you’ll need a trust deed that outlines the trust’s purpose, how trustees are appointed, and how funds are managed. For a CIO, you’ll file articles of association that cover similar ground but also address how the organization can own property and enter contracts.

After the deed or articles are drafted, register with the Charity Commission. You’ll submit the mission statement, governing document, trustee details, and a projected budget for the first year. If your annual income is under £5,000, registration is optional but still recommended for credibility.

Keeping It Running – Governance and Funding

Good governance keeps your charity safe and effective. Hold an initial meeting to adopt the governing document, set up a bank account in the charity’s name, and record minutes. Use a simple spreadsheet to track income, expenses, and the value of any assets you hold.

Fundraising is the lifeblood of any charity. Start with low‑cost methods: a community bake sale, a crowdfunding page, or approach local businesses for sponsorship. Show donors exactly how their money will be used – transparency builds trust and encourages repeat giving.

Don’t forget tax benefits. Register for Gift Aid so you can claim an extra 25% on UK donations. Keep receipts and a clear audit trail so the Charity Commission can see that funds are spent on your mission.

Finally, review your progress every six months. Ask yourself: Are we reaching the people we said we would? Are trustees meeting their responsibilities? Adjust the mission statement if needed, but keep the core purpose clear.

Starting a charity doesn’t have to be overwhelming. With a focused mission, the right legal structure, and a practical plan for governance and fundraising, you can turn a good intention into a lasting impact. Ready to get going? Grab a notebook, write that mission sentence, and take the first step today.

Gareth Sheffield

Charitable Trust Basics: Essential Requirements to Get Started

Thinking about setting up a charitable trust but don't know where to start? This article covers everything from defining what a charitable trust is to the key requirements needed for its establishment. Learn about legal factors, trustee roles, and common pitfalls in setting up a trust. Make sure your charitable intentions are backed by solid structures. Grab tips on how to maintain compliance and security.