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Many people who establish a business do so primarily to benefit themselves – they want to achieve financial independence, be their own boss or work in a field that they are passionate about.

Those who establish a charity, on the other hand, do so with the best interests of others in mind; defined by the Charity Commission as an organization established for the benefit of a charitable purpose, a charity’s objectives must be entirely altruistic.

With more than 160,000 registered charities in England and Wales, as well as a countless number of smaller funds, establishing a charitable organization is becoming an increasingly popular option for those who want to make a difference in the world and are willing to put their own financial interests on the back – burner in order to accomplish their goals.

The majority of people who start a charity do so in response to an incident or situation that is personal to them, such as the death of a loved one or the need to support a worthwhile community project that is in need of support.

Here, we briefly look at some of the things you need to think about when starting a charity.

What are your objectives and goals?

When establishing the goals of your prospective charity and developing your charity business plan, you should consider how your organization can have the greatest possible impact. To do this, sit down with your prospective beneficiaries and talk with them about how they could most practically benefit from your efforts. When it comes to doing good, understanding the true needs of the end-user is more important than trying to do good yourself.

You must be well-versed in the broader environment and possess exceptional political acumen. When you grasp the true nature of the need, you can direct your resources, your fundraising efforts, and the overall impact of your organization’s efforts toward it.

Working out where your cash will come from is just as critical as the first step. As a charity, you will rely on the generosity of others to keep your organization afloat, so you must determine at this point who or what you will target to benefit from this generosity. When it comes to fundraising, a charity has a plethora of options, including grants from the government and other organizations such as the National Lottery, wills and bequests, and direct fundraising from members of the public. Grants from the government and other organizations such as the National Lottery are just a few examples. Remember, you may require a Specialist auditor for UK charities. 

Research the rules and regulations

For obvious reasons, there are many rules and regulations around charities, and we won’t go into every single one here – there are too many.  The most important thing to start with is to register. You must register as a charity with the Charity Commission if your organisation generates more than £5,000 in revenue; there is no getting around this requirement, which is mandated by law. The Charity Commission expects charities to meet a rigorous set of standards, which are detailed in the following sections.

You will need to start planning far in advance of the registration process because most people who form charities have raised or plan to raise an amount that is significantly greater than the requirement. Before you may register a charity with the Commission, you must have settled on a name and structure for the organization, approved a governing document, and chosen a board of trustees.

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