How to Start a Charity in 2026

Starting a charity can be a rewarding way to support a cause you care about while creating a meaningful impact in your local community.  But where do you even start? Arguably there is more to consider when setting up a charity compared to a high street business, but don’t let that put you off – equipped with the right facts, you can get well on your way to setting up a successful charity for a meaningful cause in 2026/27. To give you the best chance of success, you need to understand the ins and outs of how to start a charity organisation in 2026/27.  

This guide explains exactly how to start a charity in the UK, including the legal and financial considerations to the practical steps you need to take in 2026 to launch your charitable organisation. Once you’ve got your not-for-profit organisation up and running, you should consider what insurance you might need, more info the type of cover you may need can be found on our charity insurance page. 

Why start a charity? 

Many individuals and groups choose to start up a charity to tackle social, environmental or community challenges. You probably know exactly why you want to start a charity, but some common reasons could include: 

• Supporting a cause or community you care about 
• Raising funds for research, relief or education 
• Providing services for vulnerable groups 
• Creating long-term social or environmental change 

If you’re thinking about how to start a foundation for charity or a charitable organisation, it's important to remember that charities must operate for public benefit and follow governance rules set by the regulator. In England and Wales the regulator is the Charity Commission. In Scotland, this is the Scottish Charity Regulator (OSCR). 

Key steps to starting a charity in the UK 

The following steps outline how to start a registered charity properly and meet regulatory requirements. 

Find trustees for your charity 

Every charity must have a group of trustees responsible for overseeing how it operates and acting in the best interests of the charity. It’s an important job - trustees make sure the charity fulfils its mission and complies with legal obligations. When selecting your trustees, choose people with different skill sets, ensure they understand their responsibilities and aim for at least three trustees to help with all the decision-making.  

You might want to consider the following skill sets: 

• Experience in your charities area 
• Strategic leadership experience or long term decision making skills 
• Team work and negotiation  
• Experience in charity fundraising 

Ensure your charity has ‘charitable purposes for the public benefit’ 

To become an approved charity, your organisation must have clear charitable objectives that benefit the public. In the UK, recognised charitable purposes include areas such as: 

• Relieving poverty 
• Education 
• Religion 
• Health 
• Saving lives 
• Citizenship or community development 
• The arts 
• Amateur sport 
• Human rights 
• Religious or racial harmony 
• The protection of the environment 
• Animal welfare 
• The efficiency of the armed forces, police, fire or ambulance services 

Choose a name for your charity 

This might be an obvious step, but you will need to name your charity. The official name of your charity is known as its ‘main name’. Your charity may also have a ‘working name’, which is another name it uses. 

Both these names must not: 

• Be the same as or too similar to the main or working name of an existing charity 
• Use words you do not have permission to use, for example, a trademark 
• Use offensive words or acronyms 
• Be misleading, for example, suggest your charity does something it does not 

You can search the charities register to check the names of registered charities. 

Choose a structure for your charity 

The legal structure of your charity can affect things like who runs the charity, how the charity is run and what the charity can do, so it’s an important consideration when learning how to start up a charity. 

There are four common charity structures in the UK: 

• Charitable company 
• Charitable incorporated organisation (CIO) 
• Charitable trust 
• Unincorporated association 

The type of charity you opt for is up to you, but we’ve broken down suitability of each, so can you make an informed decision. 

Different charity types 

Charity type	Charitable Incorporated Organisation (CIO)	Charitable Company	Charitable Trust	Unincorporated Association
Best for	New/medium-sized charities	Large charities/employment	Grant-making/simple assets	Small voluntary groups

Create a ‘governing document’ 

This sounds very formal – but it is essentially a large document explaining how your charity works and runs. This document should include: 

• Your charity’s purpose – what's your mission? 
• Who runs it and how they run it – Who are your trustees? How do they fund it? 
• How trustees will be appointed – How did you decide on your trustees 
• Rules about trustees’ expenses – What is and isn’t considered an expense 
• Rules about payments to trustees – If trustees are ever paid, these rules should be in the best interest of the charity 
• How to close the charity – If you decide to stop your charity, note down the steps to do so. 

Register as a charity  

If your charity is based in England or Wales and generates at least £5,000 in annual income per year, you must apply to register your charity. 

How much does it cost to start a charity? 

The cost of starting a charity can vary depending on its size and structure, but it’s a good idea to consider what might make up your costs. Typical costs may include: 

• Legal advice or registration support 
• Website development and branding 
• Marketing and outreach 
• Office or operational expenses 
• Insurance policies 

If you are just starting up, you may be working with a small pot of donations – so it’s a good to consider what you can launch with and without. Some marketing activities you might want to leave until you’re a few months in, while fees for professional advice and employers’ liability insurance might be essential from the start. 

Insurance considerations 

Like any small business or organisation, charities still face operational risks that could lead to legal or financial issues.  

Charities in the UK that employ any staff are legally required to have employers’ liability insurance. This type of cover can help protect the organisation if an employee becomes ill or is injured as a result of their work, this also includes volunteers, helpers or even part-time staff.  

Although not a legal requirement, if your charity hosts any events, it’s a good idea to look into public liability insurance. This can help in the event visitors injure themselves during your event and make a claim.  

Other types of insurance to consider include trustee management liability insurance, commercial building insurance, business interruption insurance, legal expenses insurance and business equipment insurance. For more information on insurance for charity or your non-profit organisation needs, read up on charity insurance or start a quote online to see what your options are. Our UK-based team are on-hand to help.

Energy considerations 

VAT exemption for charities and non-profits 

Charities in the UK may be eligible for reduced VAT on energy used for qualifying non-business activities. Eligibility depends on how the energy is used and confirmation from the supplier. 

In many cases, VAT on energy can be reduced from the standard 20% rate to 5% when used for non-business purposes. Charities may also qualify for an exemption from the Climate Change Levy (CCL), an environmental tax applied to business energy usage. 

The reduced VAT rate and CCL exemption are designed to help charities lower their operating costs, so they can direct more of their funds toward their services for the public. However, they are not always applied automatically by energy suppliers, meaning many charities across the UK may be paying more for their gas and electricity than necessary.  

To apply for the reduced VAT rate and CCL exemption, charities usually need to contact their energy supplier and complete a VAT declaration form. In some cases, charities may also be able to claim back overpaid VAT or CCL from previous bills, depending on the supplier’s policies and how long the organisation has been eligible for the relief.  

Legal and financial considerations 

As a charity, you are required to comply with  several laws and regulations, so it’s important to brush up on them, or hire someone to help talk you through all the legal jargon. You’ll need to comply with the Charities Act, the Charities (Protection and Social Investment) Act, the Trustees Act and any laws on political activity and fundraising. 

Here is a breakdown below: 

• The Charities Act - The Charities Act is the main piece of legislation that affects charities. It determines how charities are registered and regulated.  
• The Charities (Protection and Social Investment) Act 2016 - The Charities (Protection and Social Investment) Act gives charities the power to make social investments, increase controls on fundraising, increase the threshold for automatically disqualifying potential trustees and increase the powers of the Charity Commission.  
• The Trustees Act - The Trustees Act provides the rules, duties and responsibilities of trustees. These are key pieces of legislation and should be on the reading list of all charity trustees. 

You can find up-to-date and legal guidance on the Charity Commission website.

Tips for growth 

Once your charity is up and running, the next step is to ensure it can grow so you can help those you’re supporting. 

Building awareness and outreach 

Getting your name out there is key for any charity. Setting up a website and social media pages will help you create an online presence for your cause. Make sure to engage with your community on social media, communicate your mission and share updates about your work. 

Hosting community events is another great way to raise awareness while connecting with people locally. Collaborating with local organisations, small businesses and community groups can help get your charity known in your local area and introduce your cause to new people who could potentially volunteer. 

Ongoing fundraising tips 

Fundraising and getting donations is key for keeping a charity healthy – without this vital support you may find it difficult to grow your charity or keep it running smoothly. Finding different and creative ways to get funding will help you achieve this. 

Many organisations rely on several fundraising approaches to keep donations coming in. Online donation campaigns are a popular option, making it easy for supporters to contribute quickly and securely. Corporate sponsorships can also be valuable – this is where a corporate business chooses to support you by actively fundraising on your behalf. Or you may find some corporations have foundations for charity grants – like the

If you want more information on this, Charity Excellence may be able to help. 

Applying for local grants can also be an option, particularly for charities working in areas such as education, helping the local community or health services. It’s a good idea to do your own research, check if your local council offers any support or contact any big businesses in your area to see if they can help. To kick off your fundraising, consider hosting a large community event or even a sponsored challenge to help raise funds while increasing spreading your mission. 

Get your charity up and running with help from Bionic 

Starting a charity is a rewarding venture! But it’s important you get the right support to help you on your way. At Bionic, we help with your business essentials like energy, insurance, broadband and finance. We work with a panel of regulated suppliers and providers, helping you compare what’s available to you. Our UK-based team are also on help to support you through the process, so you can focus on what’s most important - running your charitable organisation. 

Ready to start your not-for-profit? Get a quote for your business essentials today.

How to start a charity FAQs 

Can I run a charity for profit? 

It depends how you are looking at it. You can’t run a charity for personal profit. This means you can’t take an income from your charity. But the charity can still make a profit, but profit must be put back into the charity to help fund it. It can’t be given to owners, trustees or directors for personal income. You can sell goods, services as a charity, but any profit must be reinvested. 

What if I want to get paid?  

If you want to generate a profit but contribute toward a charitable cause, then you might want to consider setting up as a Community Interest Company (CIC) or a social enterprise, as these structures do allow for limited profit distribution. You can find more information on CICs on the government site. 

I don’t have money to start a charity, what should I do? 

Don’t let that put you off. As long as you have time and people willing to support and help you, you can still get it off the ground. If you put yourself out there, you might be surprised at the funding opportunities that come your way. Have a read through the government advice to funding for charities.