Starting a charity is a great way to make a positive difference in the world. If you have a cause you’re passionate about and want to help others, setting up a charity might be the right path for you.
What is a Charity?
Before we dive into the steps, let’s understand what a charity is. A charity is an organization that works to help people, animals, or the environment. It doesn’t make money for its owners. Instead, it uses its money to do good things for its cause.
Step 1: Define Your Charity’s Purpose
The first stage in setting up a charity is to distinctly determine its purpose. Define:
- What problem do you want to solve?
- Who or what do you want to help?
- How will your charity make a difference?
For example, your charity might aim to:
- Help homeless people find homes
- Protect endangered animals
- Clean up local parks and beaches
- Support children’s education in poor areas
Write down your charity’s goals. This will help you stay focused and explain your mission to others.
Step 2: Research Existing Charities
Before starting your own charity, it’s important to check if there are already charities doing similar work. You can:
- Search online for charities in your area or with similar goals
- Look at charity directories or government listings
- Talk to people involved in similar causes
If you find charities doing similar work, you have two options:
- Join or volunteer with an existing charity
- Make sure your charity offers something different or serves a unique need
Step 3: Create a Business Plan
Just like a regular business, a charity needs a plan. A business plan for your charity should include:
- Mission Statement: A short explanation of your charity’s purpose
- Goals: What you want to achieve in the short and long term
- Services: What your charity will do to help its cause
- Target Audience: Who will benefit from your charity’s work
- Funding Plan: How you’ll raise money for your charity
- Budget: How you’ll spend the money you raise
- Team Structure: Who will run the charity and what they’ll do
Your business plan doesn’t have to be perfect, but it should give a clear picture of how your charity will work.
Step 4: Choose a Name for Your Charity
Picking a name for your charity is an important step. A good charity name should:
- Be easy to remember
- Clearly relate to your cause
- Be different from other charities’ names
- Not be offensive or misleading
Once you have some name ideas, check if they’re already being used. You can search online and check with your local charity regulator.
Step 5: Decide on Your Charity’s Structure
Charities can have different legal structures. The most common are:
- Charitable Trust: Good for charities managed by a small group of people
- Unincorporated Association: Suitable for small, membership-based charities
- Charitable Incorporated Organization (CIO): Offers protection to trustees and members
- Charitable Company: A good choice for larger charities that will have staff and own property
Each structure has its own rules and responsibilities. It’s a good idea to set up a charity legally by talking to a lawyer or charity expert who can help you choose the best structure for your organization.
Step 6: Find Trustees or Directors
Trustees (sometimes called directors) are the people who will run your charity. They make important decisions and make sure the charity follows the law. When choosing trustees:
- Look for people who care about your cause
- Find individuals with different skills (like finance, marketing, or legal knowledge)
- Make sure they understand their responsibilities
- Choose people you trust and can work well with
Most charities need at least three trustees. They don’t usually get paid for this role.
Step 7: Write Your Charity’s Governing Document
A governing document is like a rulebook for your charity. It explains:
- Your charity’s purpose
- How it will achieve its goals
- Who the trustees are and how they’re chosen
- How decisions are made
- What happens if the charity needs to close
The type of governing document you need depends on your charity’s structure. It might be called:
- A constitution
- A trust deed
- Articles of association
You can find templates online, but it’s a good idea to get help from a lawyer to make sure your document covers everything it needs to.
Step 8: Open a Bank Account
Your charity will need its own bank account. This keeps the charity’s money separate from personal funds. To open a charity bank account:
- Choose a bank that offers accounts for charities
- Gather necessary documents (like your governing document and trustee details)
- Decide who will be able to use the account (usually at least two trustees)
- Visit the bank or apply online to open the account
Having a separate bank account makes it easier to keep track of your charity’s money and show how it’s being used.
Step 9: Register Your Charity
In most countries, you need to register your charity with the government. This usually involves:
- Filling out application forms
- Providing your governing document
- Giving details about your trustees
- Explaining your charity’s purpose and how it will operate
- Showing your financial plans
The registration process can take several weeks or even months. Be patient and make sure you provide all the information asked for.
Step 10: Set Up Your Charity’s Operations
Once your charity is registered, you can start setting up its day-to-day operations. This includes:
- Finding a place to work from (this could be an office, a community center, or even someone’s home)
- Setting up systems for managing money and keeping records
- Creating a website and social media accounts
- Designing a logo and other marketing materials
- Recruiting volunteers or staff if needed
- Planning your first fundraising activities
Remember to keep good records of everything your charity does. This will help you report to supporters and the government about your work.
Step 11: Start Fundraising
Charities need money to do their work. There are many ways to raise funds:
- Apply for grants from foundations or the government
- Ask for donations from individuals
- Hold fundraising events (like concerts, auctions, or sponsored walks)
- Sell products or services related to your cause
- Set up online donation pages
Make sure you follow the rules about fundraising in your area. Always be clear about how you’ll use the money people give you.
Step 12: Review and Adapt
As your charity grows, you’ll learn what works well and what doesn’t. Regularly review your charity’s work and be ready to make changes. This might mean:
- Adjusting your goals
- Trying new fundraising methods
- Expanding your services
- Bringing in new trustees or volunteers
Stay focused on your charity’s purpose, but be flexible in how you achieve it.
Conclusion
Setting up a charity takes time and effort, but it can be very rewarding. By following these steps and staying committed to your cause, you can create an organization that makes a real difference in the world.
Running a charity is an ongoing process. Keep learning, stay passionate about your cause, and don’t be afraid to ask for help when you need it. With dedication and hard work, your charity can become a powerful force for good in your community and beyond.
