There is a lot of confusion about who can fundraise and what status you need to be able to gather funds for a good cause. There are strict rules around accepting donations in the UK, primarily because of the tax benefits that come from being a charitable organisation.
These rules are also in place to protect the generous people who donate to charity. By ensuring that the charity sector is well-regulated, members of the public can donate their money with confidence, knowing that it is going to a good cause.
Who can start a charity?
Anyone can start a charity, provided they follow the rules set out by the charity commission and can clearly demonstrate their charitable aims. In order to qualify for tax relief from HMRC, you will need to be a registered charity.
To register as a charity in the UK, you’ll need trustees to be responsible for the day-to-day operations. You’ll also need to choose a legal structure for your charity. It’s also important that you can clearly show a public benefit for the existence of your charity.
If there is another charity with very similar goals and objectives, you will need to demonstrate how your charity is different. Otherwise, you might consider joining forces with an existing charity to expand their efforts.
Who can ask for donations?
In order to collect donations as a charity, you will need to be registered. When collecting charitable donations, it’s common for organisations to include information about their charity registration in order to ensure individuals feel confident giving to your charity.
There’s no shortage of scammers in the UK that will seek to take advantage of the generosity of the general public by collecting donations for a fake charity. The easiest way to fill people with confidence when they donate to your charity is to be open and transparent about your intentions.
Using online platforms such as GoFundMe can also help to boost confidence, as this is a platform that people know, and scammers will have a harder time accessing the money if they are pretending to be from a well-known charity.
Who can raise money for charity?
Anyone can raise money for charity in the UK, but it’s important to follow a few rules in order to keep everything above board. You’ll need to keep track of your donations and keep the money separate from your own money. You can’t keep any of the donations for yourself, even to cover your expenses.
The best way to manage this is to use an online platform to collect donations. When doing this, remember that the platform will likely take a percentage of your donations. This should be made clear to donors so that they can make an informed decision about whether or not to donate.
If your donations are reliant on you completing a challenge – for example, running a marathon – then you can delay the release of the funds until you have completed the challenge. If you fail to complete the challenge or back out, the donations will be returned to the individuals.
If you are collecting cash donations, it’s a good idea to open a bank account specifically designed for charity work. You will usually need two signatories on the account, as this helps to ensure transparency and oversight. Once you have collected all of your donations, you can then direct these towards your charity of choice.
Can you fundraise without being a charity?
It is certainly possible to fundraise for yourself in the UK, without registering as a charity. This is most commonly done to raise money for things like medical treatment, travel for medical treatment, or treatment for pets.
The important thing to remember is that you cannot claim to be a charity when asking for donations. Although you are asking people to be charitable, it’s vital that you don’t mislead people into believing you are a registered charity.
If you are using an online platform like GoFundMe, claiming to be a charity could make it difficult to claim the money and it could lead to your donations being returned.
Conclusion
There is a big difference between starting a charity and raising money for a charity. If you want to choose how the money is spent, you’ll need to start your own charity. If you just want to raise money for existing charities, you can inspire trust in your efforts by using online fundraising platforms or keeping money raised separate from your own money in a special bank account.
