Structure and features of a charity

Charities are organisations set up for the exclusive purpose of carrying out activities for the benefit of the community. 

Registration with the Charity Commission acknowledges charitable status.

The legal structures that can have charitable status include:

• An Association. Small associations with work for the benefit of the community are not normally able to register with the Charity Commission but must operate within the rules of guidelines of the Charity Commission.They must register with the charity commission when their income exceeds £5000 per annum. They are an organisation with members with a constitution.
• A Charitable Trust  – is usually set up to manage money or property for a charitable purpose.
• A Charitable Company - a limited company with charitable aims. Registered and makes returns to Companies House as well as the Charity Commission.
• A Charitable Incorporated Organisation (CIO) – has the advantages of a Charitable Company but is registered and makes returns to the Charity Commission only.

The key features of a charity are:

• Has objectives which are for the public benefit and fall into one of the 13 descriptions of purpose listed in the Charities Act.
• Trustees are normally unpaid for fulfilling their role as a trustee. However, they can claim appropriate expenses and may do some sessional work in a self-employed capacity to deliver the organisation’s activities.
• Employed staff are not normally trustees, but may attend the management committee to report and advise
• Charities do not get involved with Party Political campaigning or support, but they may campaign on issues such as; improving people’s quality of life, inequality or having better opportunities, improving the environment, animal rights etc.
• Charities carry out only primary purpose trading – where they sell donated items or goods/services that derive from the primary purposes tax-free. HMRC also allows a limited amount of other trading such as selling Christmas cards etc.