How to Set Up a UK Charity 2026: Complete Step-by-Step Guide
How to Set Up a UK Charity 2026: Complete Step-by-Step Guide
From idea to registered charity in 3-5 months. The 8-step process the Charity Commission expects, with timing, costs, and the questions you’ll be asked.
Last reviewed: 13/07/2026 · Written by Ivan Siyanko, CEO, CharityIQ.
TL;DR
– Setting up a UK charity takes 3-5 months from idea to Charity Commission approval.
– Most new UK charities are CIOs (Charitable Incorporated Organisations) — see our CIO vs charitable company guide.
– Minimum requirements: annual income of £5,000+ (or planned), 3 unrelated trustees, clear charitable purposes, public benefit.
– 8 steps below cover the full process. Free apart from optional legal advice.
The 8-step process
Step 1 — Confirm your purposes are charitable
UK charity law recognises 13 specific charitable purposes, including:
– Prevention or relief of poverty
– Advancement of education, religion, health
– Advancement of arts, culture, heritage, science
– Advancement of amateur sport
– Promotion of equality and diversity
– Environmental protection
– Advancement of animal welfare
– Promotion of efficient operation of the armed forces
Your charity must have purposes that fit one or more of these categories AND deliver public benefit. The Charity Commission’s public benefit guidance sets out what this means: real benefit, reaching a sufficient section of the public, no excessive private benefit.
If your work doesn’t fit a recognised charitable purpose, consider a CIC instead.
Step 2 — Decide your legal structure
Most new small charities choose CIO (Charitable Incorporated Organisation). Some choose charitable company limited by guarantee if they need lending or trading subsidiaries. We’ve covered the choice in detail in CIO vs Charitable Company.
Step 3 — Choose your name
Charity name rules:
– Distinctive (not too similar to existing charities)
– Not misleading
– Not too generic
– Compliant with Companies Act if charitable company
– Available — check the Charity Register and Companies House
Plan a working name from day one — you’ll need it for everything else.
Step 4 — Recruit trustees
Minimum: 3 trustees, not related to each other.
Recommended: 5-7 trustees with diverse skills (finance, legal, sector, lived experience, governance). See our trustee recruitment guide.
Each trustee:
– Must be over 18
– Not bankrupt or with relevant unspent convictions (disqualification rules)
– Understands their duties — read CC3 before agreeing to serve
– Signs a trustee declaration
Step 5 — Draft your governing document
Use the Charity Commission model governing documents. Customise lightly — heavy customisation slows registration.
The governing document includes:
– Charity name
– Charitable purposes (objects)
– Trustee composition and election rules
– Decision-making procedures
– Member/trustee rights
– Dissolution arrangements
– Whether trustees can be paid (default: no)
Step 6 — Open a bank account
You need a bank account in the charity’s name with at least two unrelated signatories. Banks with charity-friendly accounts:
- CAF Bank — charity-specialist; popular with new charities
- Unity Trust Bank — charity-friendly
- Barclays, Lloyds, NatWest, HSBC — main UK banks with charity teams
Pre-registration: some banks open accounts in pending-charity-status; others require Charity Commission approval first. Plan timing.
Step 7 — Apply to Charity Commission
Apply online via register your charity.
The application asks:
– Proposed name
– Charitable purposes (use language from the model documents)
– Public benefit description
– Activities planned
– Trustee details and trustee declarations
– Annual income forecast
– Governing document
– Bank account details
Income threshold: Charities with annual income under £5,000 don’t have to register (though many choose to). Above £5,000, registration is mandatory.
Step 8 — Wait — and then begin
Charity Commission review takes typically 3-4 months. They may come back with questions; respond promptly.
When approved:
– You receive your Charity Number
– You’re listed on the public Charity Register
– You can start operating with full charitable status
Day-one obligations:
– Charity number on all materials (website, letters, leaflets)
– Annual return obligations begin (10 months after first year-end)
– Trustees subject to legal duties — see our duties guide
Realistic timeline
| Month | Activity |
|---|---|
| Month 1 | Decide purposes, structure, name. Recruit trustees. |
| Month 2 | Draft governing document. Open bank account. |
| Month 3 | Submit Charity Commission application. |
| Month 4-5 | Commission review (with possible follow-up questions). |
| Month 5-6 | Approval. Begin operating as registered charity. |
Costs
Setting up a UK charity is mostly free:
- Charity Commission registration — free (CIO) or ~£12 (Companies House for charitable company)
- Bank account — free at most charity-friendly banks; some monthly fee for high-volume accounts
- Optional legal advice — £200-£1,500 for a charity lawyer to review your governing document
Total typical: £0-£500 for the setup itself.
Operating costs (insurance, accountancy, software, premises) come later.
From CharityIQ. Once registered, CharityIQ helps you onboard fast — Charity Commission profile auto-pulled, first grant application drafted, compliance calendar set up. See onboarding →
Common mistakes
1. Drafting a custom governing document. Slows registration. Use Charity Commission models.
2. Vague public benefit. “We benefit the community” isn’t enough. Specify who, how, and why.
3. Poor trustee recruitment. 3 friends from work isn’t a board. Recruit for skills and lived experience.
4. Underestimating timeline. 3-5 months is the typical reality. Don’t promise donors a charity number you don’t yet have.
5. Starting operations before approval. Donations received before registration are technically not charitable. Plan a “pre-registration” period or hold off on fundraising.
Frequently asked questions
Q: Can I start operating before registration?
A: You can begin activities, but not as a registered charity. Money raised may not be charitable income. Best to wait — or operate as an unincorporated group during the gap.
Q: Do I need an accountant from day one?
A: For tiny charities under £25k income, you can self-manage with HMRC’s free guidance. Above that, having an accountant familiar with SORP and UK GDPR pays off quickly.
Q: What about VAT registration?
A: Charities don’t pay VAT on most charitable activities. VAT registration is needed only if you have substantial taxable trading income (currently >£90,000 of taxable supplies). Most small UK charities don’t register.
Q: When should we get insurance?
A: Day one. Trustee Indemnity Insurance, Public Liability, and (if you have staff) Employer’s Liability are essential. Cost typically £200-£600/year for a small charity.
Q: What about a logo, branding, website?
A: Useful but not required for registration. Plan for ~£500-£3,000 if outsourced; or DIY using free tools (Canva, WordPress).
What to do this week
If you’re considering setting up a charity:
1. Confirm your purposes fit a recognised charitable head
2. Recruit 3 unrelated trustees willing to commit
3. Read Charity Commission CC1 — How to set up a charity end to end
4. Draft a one-page brief of what the charity will do, who it serves, why now
Set up admin right from day one. Start a free 14-day CharityIQ trial. Start free trial →
Written by Ivan Siyanko, founder of CharityIQ. Ivan set up his own UK charity in 2024.
Related: CIO vs Charitable Company · Trustee Duties Explained · Trustee Recruitment
Sources:
– Charity Commission — Set up a charity
– Charity Commission — Charitable purposes
– Charity Commission — Public benefit rules
– Charity Commission — Model governing documents
– NCVO — Setting up a charity