Charitable trust

A charitable trust is one of the oldest charity forms and still the simplest to set up — a trust deed and trustees willing to act. That simplicity comes with a structural cost.

A trust has no legal personality of its own. It cannot own property, employ staff or enter contracts in its own name, and the trustees are personally liable for its obligations. Property is held by the trustees, or by a custodian trustee, on the charity’s behalf.

Trusts suit grant-making charities and endowments where there are few contracts and no employees. If you hold premises or employ anyone, read choosing a legal structure — see also unincorporated.