Did you know that there are over 160,000 charities registered in the UK, and many more smaller community groups, social enterprises, and local projects? While starting your own charity doesn’t have to be difficult, securing funding to keep it running can be a lot trickier. In this blog, we’ll look at whether starting a charity is the best option.
Look For Similar Charities
One of the first things that you should do before thinking of starting a charity is to see if there is already a not-for-profit or charity that is already established. If a similar organisation already exists it might be worth discussing your project with them and working with them to help achieve the changes that you are setting out to make.
Basically, what you want to find out is if setting up a new charity is the only way that you can achieve your goal. Doing some research and taking time to speak with different organisations could help you decide on whether it is really worth starting a new charity.
Is A Charity The Right Option?
There are all types of different organisations from charities to social enterprises and not-for-profit organisations and each of these has its own advantages. A Community Interest Company (CIC) is another option that you might want to consider. It all depends on how you want to help people and what your goals as an organisation are. For a quick overview of the differences take a look at this blog (link to previous blog article).
What Are The Advantages Of Setting Up A Charity?
Some of the main advantages of setting up a charity when compared to a different not-for-profit organisation include tax breaks, a strong level of public trust, a transparent and defined purpose for the publics benefit.
So, now that we have covered the advantages let’s take a look at some of the disadvantages of a charity:
• All charities must be registered with The Charity Commission
• Charities are only allowed for certain purposes which the law recognises as being charitable.
• They can only be run by trustees who are normally unpaid volunteers.
• There are strict rules to how charities can trade.
• All charities must provide up-to-date information about their activities and finances.
Still Want To Go Ahead?
If you are still keen on setting up a charity, then the next thing that you are going to want to check is whether it is viable from a financial point of view. The majority of charities rely on public funding, donations, and grants so it best to check out the funding options. If your cause is something that resonates with donors then it will be much easier to attract funding, but if there are already several different options for potential donors then you will find it a lot harder to get funding.
Take The Next Step
With a clearly defined charitable purpose and a good chance of getting funding you’re ready to take the next steps and start a charity. You’ll need to write your governing document, find your trustees, open a bank account, and register with The Charity Commission. If you need a handwriting a grant application or with your organisational development, then get in touch with the team at Atlas NGO Solutions today.