If you start to find that not being a registered charity is limiting your fundraising options, then it’s worth considering making the move to become one.

Here's where to look for advice across the UK. Then below, we speak to two creative groups (the Thames Head Singers and Kirrie Connections) that have gone through the process.

England and Wales

The National Council for Voluntary Organisations (NCVO) has a range of helpful resources on its website in its ‘Running a Charity’ section. Here you’ll find information on the legal obligations of charities, charity finance, compliance and much more. Visit www.ncvo.org.uk/help-and-guidance/running-a-charity

NCVO also maintains a handy toolkit originally created by the Small Charities Coalition (now closed) which steers you through the logistics of setting up a charity, including lots of useful checklists. You can find the toolkit here: www.charitysetup.org.uk 

The Charity Commission for England and Wales has information on setting up and registering a new charity, what you need to send to them for your annual return, the roles of trustees and much more. Visit them at www.gov.uk/government/organisations/charity-commission 

On the UK Government website you’ll also find a handy ‘step by step’ guide to becoming a charity in England or Wales: www.gov.uk/set-up-a-charity 

Northern Ireland

The 'Starting a charity guidance' created by the Charity Commission for Northern Ireland provides an introduction and overview of factors to consider when setting up a new charity. 

It highlights aspects of the law that governs charities in Northern Ireland and signposts to detailed guidance on specific areas. Visit www.charitycommissionni.org.uk/start-up-a-charity to find out more.

Scotland

The Scottish Council for Voluntary Organisations (SCVO) has a range of helpful resources on its website taking you through the entire process and helping you decide what kind of charity to become (e.g. a social enterprise, a charitable incorporated organisation). They also have templates for writing your constitution. https://scvo.scot/support/setting-up-a-charity

OSCR, the Office of the Scottish Charity Regulator, has a number of helpful resources on its website including ‘10 questions to ask yourself if you’re thinking about becoming a charity’. www.oscr.org.uk

Your local ‘Third Sector Interface’ (volunteer centre) can also provide help and support with becoming a charity, or simply deciding what shape your group should take. You can find the office closest to you here: https://tsi.scot

You can download Creative Lives’ free information briefing, ‘Getting Charitable Status’ at www.creative-lives.org/getting-charitable-status

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How was it for you?

We speak to Thames Head Singers in Stroud, Gloucestershire about their experience of registering as a charity in England.

How long had Thames Head Singers been going before you became a registered charity? What prompted you to do so?

"We formed in 1980, and in 2017 we registered as a charity with HMRC for Gift Aid purposes.  In 2023 we then applied to the Charity Commission to become a Charitable Incorporated Organisation (CIO) and were registered in January 2024.

Our initial registration with HMRC in 2017 was prompted by the opportunity to use Gift Aid.  Gift Aid is a long-standing tax break that allows charities to treat donations (in a broad sense) as if they had been paid net of basic-rate tax, and claim the tax from HMRC. That means that a donation of £80 attracts a tax benefit of £20.

Our subsequent registration with the Charity Commission in 2023/24 was prompted by the need either to register or to cease being a charity due to our growing turnover. This is because charities with turnover in excess of £5,000 must register with the Charity Commission.  We had been close to the limit before, but then Covid meant that we were able to wait."

How did you find the process of registering with the Charity Commission? Did they help guide you through the process?

"We decided that if we had to register, we would take the opportunity to convert to a CIO. We were lucky in having a trustee who had been through the process with another organisation, so he led us through it. 

The process of setting up a CIO is not that complicated, but nor is it intuitive. It’s definitely one of those things that is much easier when you have done it before.  We had limited contact with the Charity Commission - they just made a couple of helpful suggestions for changes to our draft CIO constitution."

What responsibilities did you take on when you became a charity? And how much time does this take you, as an organisation?

"As part of the process of registering with HMRC in 2017, we adopted a Making Music model charitable constitution. That was not massively onerous. The jury is still out on the extra work generated by being a CIO - it has not been too bad so far, but we have yet to go through our first year-end reporting process. Fortunately our trustees have connections with other longer-established CIOs, and can learn from them."

What do you feel are the benefits of being a charity? Have you found more fundraising opportunities?

"Gift Aid was the big one for us. We were also then able to participate in our local community good-causes lottery. However, we believe that it probably also brings some intangible benefits in our public perception. Our potential audience and potential members may be more likely to support an organisation that has the official confirmation of being for good causes rather than making money."

If a group is thinking of taking the plunge and becoming a charity, what advice would you give them?

"Ideally, find someone to help you who has been through the process already with another group or organisation. It’s not that difficult, but it seems rather daunting for those who have not seen it before. It may well not be practical to recruit a trustee just because they have done a charity incorporation before, but it may be possible to find someone who has done it and would be prepared to give some advice through the process."

Is there anything you wish you'd known before starting the process of becoming a charity?

"No, I don’t think there is. It has delivered the benefits we were looking for and (so far!) has not given us any cause for regret. We are glad we did it."

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And we speak to Graham Galloway, former Chair of youth music project DD8 Music and Chief Executive of Dementia support hub Kirrie Connections (pictured) about his experience of registering as a charity in Scotland.

How long had DD8 Music and Kirrie Connections been going before they took the decision to become a registered charity?

“Each organisation had a very different route to becoming a charity. DD8 Music formed in 2005 as an unincorporated association, and for the first 12 years that suited the scale of  things the organisation was doing – and we were able to apply for some small grants to support the work we were carrying out locally. 

The biggest driver to becoming a charity was our annual music festival, Bonfest. This festival grew in size significantly, leading up to 2016 which was the first year we held one on a really large scale. We realised at this point that we really needed the additional safeguards that charitable status would bring, and in 2017 the decision was taken to become a Scottish Incorporated Charitable Organisation (SCIO).

Kirrie Connections started in 2015 and was initially a project under another charity, The Kirriemuir & Dean Area Partnership. But what started as a project very quickly became something more substantial, and in 2018 Kirriemuir & Dean Area Partnership decided that Kirrie Connections should also become a SCIO. Kirrie Connections is what’s known as a ‘2-tier’ SCIO, which means it has a wider membership, made up of people who use the charity's services, local people and other stakeholders, plus a  board of trustees which is elected by the membership and is directly accountable to them.”

How did you find the process of registering with the Office of the Scottish Charity Regulator (OSCR)? Did they help guide you through the process?

“Once the decision had been made to become a charity, both organisations found the transition process to be relatively straightforward. There is a lot of great information on the OSCR website on everything from governance structures through to trustee roles and responsibilities. We also received some great advice from other local charities who had already been through the process.

The main support both DD8 Music and Kirrie Connections got was through SENScot Legal, a social enterprise that provided affordable legal services to the third sector in Scotland, which helped both charities draw up constitutions and get registered with OSCR. Unfortunately SENScot wound down at the end of June 2022, but a new social enterprise called Àrachas³ offers the same service.”

What responsibilities do you take on when you become a charity? How much time does this take you, as an organisation?

“The main responsibilities are around the annual report and financial reporting back to OSCR. While this is more onerous than the level of reporting an incorporated organisation has to do, it definitely brings benefits in ensuring your organisation has rigorous financial systems in place.

Once these become part of your day-to-day working, they really don't add a huge amount of extra work and the benefits far outstrip any disadvantages. The level of reporting increases with the amount of income, with additional information required at turnovers of £25,000 and £250,000, and with a full audit being required over £500,000.”

What are the benefits of being a charity and have you found more fundraising opportunities?

“The key benefit is the fact that charitable status does open you up to a much wider pool of funding. Many funders will only offer their grants to charities. Also, once registered with HMRC, you are able to claim Gift Aid on eligible donations, potentially adding 25% to every donation.” 

If a group is thinking of taking the plunge and becoming a charity, what advice would you give them?

“Don't be scared! The benefits of becoming a charity vastly outweigh any negatives. You do need to ensure that you have the right trustees on board to take things forward, but once you do, charitable status will open up many more doors. If you do have any concerns I would approach a local charity to ask about their experiences – most small charities will be happy to chat and offer advice.”