Understanding How a Charity Works Essay

262 WordsMar 23, 20152 Pages
To be a charity, your organisation needs to be run by more than one person. It must: • Follow charity law • Only does charitable work • Use all the money it makes or receives to help it do its charitable work CHARITABLE WORK: WHAT COUNTS AND WHAT DOESN’T Your charity can only do work which the law says is charitable. The following work is said to be charitable if it's for public (not private) benefit: • Advancing education • Advancing religion Examples of ways in which charities can advance religion include: • The provision of places of worship; • Raising awareness and understanding of religious beliefs and practices; • Carrying out religious devotional acts; • Carrying out missionary and outreach work. HOW LONG DOES IT TAKE TO REGISTER A CHARITY? It takes an average of 30 days for a charity registration application to be processed. It will take longer if you have not supplied all of the information we need to make a decision, eg: • A signed trustee declaration • Your organisation’s governing document • Proof of that your organisation’s income is £5,000 or more • Certificate of incorporation (if applicable) UNREGISTERED CHARITIES You can call your organisation an unregistered charity if: • its yearly income is less than £5,000 • You can apply to HM Revenue & Customs (HMRC) to ask that it be recognised as a charity for tax purposes. This lets you claim the same tax advantages as a registered charity. • Your charity can stay unregistered as long as its annual income is less than £5,000. Unregistered charities don’t have to send information to the Charity Commission every

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