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Starting a new charity is an exciting time to make a positive difference, but the legal side of things can sometimes feel overwhelming – especially with the evolving regulatory landscape as we approach 2025. It pays to be well informed to ensure your charity is built on a solid legal foundation from the start.
Charities here in the UK are regulated by the Charity Commission. In addition, the Charities Act 2011 remains one of the main pieces of legislation governing charities – though there have been updates and refinements in its interpretation and enforcement as of 2025. If you’re ever in doubt, don’t hesitate to reach out to us for support!
Whether you’ve just got an idea or are already making a difference in your community, if you’re looking for guidance on getting your legals right, you’ve come to the right place. Our expert team is here to help you navigate these challenges smoothly.
Part I of the series covered how to choose the right legal structure for your charity. If you haven’t seen it yet, we highly recommend you take a look to understand your options fully.
Now that you’ve chosen a legal structure, in this Part II we’ll take you through how to get your charity registered and fully operational in a way that is compliant with the latest 2025 requirements.
1. Assemble The Team For Your Charity
Your charity’s constitution sets out the rules for the organisation and is a vital document covering its mission, purpose, members’ rights and responsibilities, appointment of officers, meeting procedures, winding up, and other operational matters.
It is crucial that the constitution is clear on the charity’s purpose and uses precise language. This clarity not only helps in achieving your mission but also simplifies compliance with regulatory guidelines. For further guidance on drafting robust legal documents, please see our article on what is a company constitution.
We highly recommend you seek professional advice if you are unsure about the suitability or wording of your constitution – please get in touch with us if you need help drafting or reviewing your document.
2. Hire Trustees
In order to establish a charity, your organisation will need to appoint trustees. There are important legal requirements regarding who can serve as a trustee, as well as clear guidelines on their rights and responsibilities. You can learn more about these requirements here.
Trustees are typically individuals who generously volunteer their time without expecting monetary compensation. Their expertise and commitment play a crucial role in ensuring the success and credibility of your charity – making the selection of trustees one of the most important decisions for your organisation.
3. Incorporate Your Charity
Once you’ve finalised your constitution and appointed your team, the next step is to incorporate your charity by registering it with the appropriate government body. It’s often a good idea to hold a kick-off meeting with prospective members to discuss the process, organisational structure, and the roles each member will undertake.
The incorporation process generally involves agreeing on your constitution, completing the relevant registration forms, and paying the required fees. Once these steps are completed, you will need to register your charity with the Charity Commission. Do note that if your charity is a Charitable Incorporated Organisation (CIO) or has an annual income (largely from donations) exceeding £5,000 – a threshold reviewed and confirmed in early 2025 – registration with the Charity Commission is mandatory.
4. Register Online
If your charity is not structured as a CIO, you may still register online via Companies House. The process is straightforward, can be completed online, and requires a fee – the same portal used for company registration. This method remains a popular option for charities that operate under different legal structures.
You will need to provide personal details along with comprehensive information about your organisation during the registration, so have your constitution and trustee details on hand.
5. Charity Tax Concessions
There are several tax concessions, grants, and funding opportunities available to charities. To benefit from these, your charity must be recognised by HM Revenue and Customs (HMRC). Your eligibility for tax relief depends on your legal structure, charitable purpose, and the precision of your constitution’s wording.
Keep in mind that if your charity uses income for non-charitable purposes or receives funds that do not qualify for tax relief, it may still be liable for tax. We strongly recommend consulting professional advice to ensure that you maximise available concessions while remaining fully compliant.
6. Ongoing Charity Reporting
Once your charity is established and registered, it is imperative to meet all ongoing corporate governance requirements. This includes holding Annual General Meetings (AGMs), maintaining accurate records, and submitting regular reports to the relevant government bodies. Updated guidelines in 2025 now place an increased emphasis on digital reporting and transparency.
The specific reporting obligations often depend on your charity’s structure and size. For more detailed advice on maintaining compliance after registration, feel free to ask us or consult our broader guide on legal requirements for starting a business.
7. Embrace Modern Governance
In 2025, charities are encouraged to adopt modern digital systems that enhance transparency and accountability. Many organisations now implement online tools for board meetings, electronic document signing, and automated reporting, which not only streamline operations but also assist in meeting the most recent Charity Commission guidelines. Investing in such technological solutions can save time and minimise administrative errors.
Utilising secure digital platforms for your internal processes also aligns with best practices for data protection and can improve stakeholder confidence. For additional insights on effective digital transition in legal processes, our article on how to change your business structure offers some useful tips.
Conclusion
Ready to launch your charity in 2025? We hope this series has provided clear guidance on the legal steps needed so that you can concentrate on driving your cause forward. With well-drafted documents, a committed team, and modern governance processes, you’ll be well placed to make a lasting impact.
If there’s anything you’re unclear about, remember that Sprintlaw has expert lawyers specialising in advising charities and not-for-profits. We’re here to help you through every stage of your charity journey.
For more information about charities and not-for-profit legal requirements, feel free to contact us. Reach out at [email protected] or call 08081347754. You can also explore our additional resources such as choosing the right legal structure for your charity and our detailed guides on meeting legal requirements for starting a business to bolster your charity’s success.
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