Do you want to be a charity?
No, we don’t need to be a charity.
Your group will be a charity if your aims fit the legal definition of charitable aims. You must check this when you are writing your aims. If you have already agreed your aims, and want to be a charity, you may need to change them so that they are legally charitable.
There are certain benefits to being a charity. A main benefit is that it makes it easier to attract grant funding (although lots of small grants are available to non-charitable community groups too). Most banks offer free banking to registered charities, but not to unregistered groups. There are also downsides to being a charity. Charities must register with the Charity Commission if they have an annual income of over £5,ooo. They then have to return paperwork to the Charity Commission each year, which can be an administrative burden to small groups. Charities also have to abide by charity law, which includes regulations limiting their involvement in political or campaigning work.
More information about being a charity.
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