Charity legal structure

The legal environment for Charities in the UK

Unit 2

Charities exist for purposes that benefit the public.

Therefore must:

  • Follow charity law
  • Only do things that are charitable by law
  • Be run by trustees who do not usually benefit from the charity
  • Be independent

Charities may benefit from:

  • Certain tax reliefs
  • Reduced business rates
  • May receive grants and funding

charity-benefits-and-responsibilities

The most common legal forms for charities and not for profit entities in the UK are trusts, charitable incorporated organisations (CIO), company limited by guarantee and unincorporated associations. Community Interest Companies (CIC) or a Community Amateur Sports Club (CASC) cannot be Charities.

A social enterprise is a business that has social, environmental or community-based objectives and can have non-charitable purposes.

In each part of the UK all charities are regulated and subject to charities law, with three regulators and three sets of legislation.

The Regulator in England and Wales:

Charities Commission (CC)

Charity Law: Charities Act 2011/22

The Regulator in Scotland:

Office of the Scottish Regulator (OSCR)

Charity Law: Charities and Trustee Investment (Scotland) Act 2005

The Regulator in Northern Ireland:

Charity commission for Northern Ireland (CCNI)

Charity Law: Charities Act (Northern Ireland) 2008 and 2013

Choose your region and specify turnover below. You will be able to find out what is the current (2022) accounting compliance framework for Charitable Trusts / Charitable Companies / Unincorporated Associations / Charitable Incorporated Organisations (CIO/SCIO)

Select options below to see your legal requirements
Jurisdiction:
Annual gross income:
  • Annual Return - Income and Expenditure only
  • For CIO only:
    Annual Accounts - choose between Receipts and Payments or Income and Expenses (Accruals) basis
  • Annual Return
  • Trustee Report
  • Annual Return
  • Annual Accounts - choose between Receipts and Payments or Income and Expenses (Accruals) basis. Charitable companies must use Income and Expenses basis
  • Trustee Report
  • Independent examination or audit certificate
  • Annual Return - Income and Expenditure
  • Notes and comments if applicable on:
    • Fundraising
    • Income / contracts with Government
    • Non-UK Activity
    • Serious Incidents
  • For CIO only:
    Annual Accounts - choose between Receipts and Payments or Income and Expenses (Accruals) basis
  • Annual Return
  • Trustee Report
  • Annual Return
  • Annual Accounts - choose between Receipts and Payments or Income and Expenses (Accruals) basis
    Charitable companies must use Income and Expenses basis
  • Trustee Report
  • Independent examination or audit certificate
  • Annual Return
  • Annual Accounts - Income and Expenses (Accruals) basis
  • Trustee Report
  • Independent examination or audit certificate
    Over £1m. an Audit
Journal end flourish


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