If your group receives donations
totalling more than £5,000, you’re required by law to register as a
charity with the Charity Commission.
Charities are organisations set up for the benefit of the
community. They enjoy some tax advantages from the government.
In certain circumstances, they can trade for profit, but they
must use any such profit for the purposes of the charity.
To qualify as a charity, an organisation has to meet strict
conditions about its overall purposes, also referred to as its
objects, including demonstrating that its purposes are for the
public benefit. The organisation also has to be set up with a
constitution or rules that meet certain conditions. These rules are
usually referred to as a charity’s governing document.
Trustees are the people who serve on the governing body of a
charity. They may be known as trustees, directors, board members,
governors or committee members. Charity trustees are responsible
for the general control and management of the administration of a
charity. The majority of trustees are volunteers and receive no
payment.
The Charity Commission provides a wide range of advice and
guidance to charities and their trustees, and can often help with
problems. Registered charities with an annual income over £10,000
must provide annual information and accounts to the commission. The
commission has wide powers to intervene in the affairs of a charity
where things have gone wrong.
Although children and young people under the age of 18 cannot
become trustees of trusts or unincorporated charities (i.e. a
charity that is not a company limited by guarantee), they can still
be part of the group or be involved in other ways. You should
consider how they could be involved in the governance of your group
or how their views will be represented when you are making
decisions.