Expert advice on creating a charitable trust
Setting up a Charitable Trust, or a charitable company limited by guarantee, are ways of creating a charity so you can:
- Support your chosen cause in a tax-efficient way; and
- Leave a lasting legacy, as a Charitable Trust can run indefinitely.
A Charitable Trust is run by Trustees according to the Trust deed. This is suitable for simple Trusts involving a few people in the decision-making process. Trustees are jointly and severally liable to the charity’s creditors.
If the charity is more complex, then personal liability may be unattractive to the Trustees so you can establish a charity as a company limited by guarantee, whereby:
- Members give a small token sum guarantee;
- The Directors (the Trustees) control the running of the charity; and
- Members can also be Directors.
A charitable company has to:
- Be registered at Companies House and at the Charity Commission;
- Report to the Charity Commission and to Companies House; and
- Comply with both charity law and company law.
The Charity Commission:
- Charities with an annual income over £5,000 must be registered.
- Smaller charities need not register but will need a tax reference from HMRC to enable donors to claim Gift Aid.
Charitable Trusts – How we can help
At Nelsons, we have an expert team of Trust solicitors who can help you in setting up a Charitable Trust.
Our team of Trust solicitors in Derby, Leicester and Nottingham is recommended by the independently-researched publication, The Legal 500, as being one of the top teams of experts in the UK.
Additionally, we can also provide you with tailored advice on a full range of other legal services with support from our Employment Law, Corporate services, Dispute Resolution and Investment Management teams.