How to raise enough money to become a charity

devilady

Hi

I am a volunteer for an animal rescue group and we are desperately trying to raise £5,000, to be able to register the group as a charity.

The problem is as quick as we are raising any money it is being spent on vet bills, kennels, foster, transport, etc.

All of the volunteers donate time and whatever they can to the costs of these animals, but although we are working hard, we don't seem to be able to get the pennies in the bank.

If anyone has any ideas to get a lump sum injection into the bank account I would be very grateful. If we can get charity status it will make it easier for us to be able to ask for funds to help save these animals lives.

Thank you for reading

booma_mitch

Hi, the £5,000 is income, not profit or money in the bank. So if as a charity you have received £5,000 this year, before you have taken any expenses off, then you can register. Hope that helps

Katiehound

Please may I put in my two penneth?

I have been told it is hard work for a very small charity to be registered due to the amount of paperwork, for example all finances will need to be audited so unless you have a tame financial whizz kid you may find that your cash flow increases both ways! Income up, red tape expenditure up too. I have no experience of this but remember the founder of a small charity saying it simply wasn't worth the effort.

rachie_2011

devilady wrote: »

I am a volunteer for an animal rescue group and we are desperately trying to raise £5,000, to be able to register the group as a charity.

I've always said that if I won a big amount on the Lotto, one of the things I would do is donate a large sum of the money to my local RSPCA so they can build a branch (we don't have one here you see....) So if I win and still have enough left over after my donation to the RSPCA, I'll give you and your rescue group £5,000 so you can register as a charity!

Now, if anyone knows the winning numbers please message me!

Savvy_Sue

Katiehound wrote: »

Please may I put in my two penneth?

I have been told it is hard work for a very small charity to be registered due to the amount of paperwork, for example all finances will need to be audited so unless you have a tame financial whizz kid you may find that your cash flow increases both ways! Income up, red tape expenditure up too. I have no experience of this but remember the founder of a small charity saying it simply wasn't worth the effort.

It is true that setting up a charity is not to be undertaken lightly. Devilady, one option is to see if there are any national or regional charities which you could become a branch of. That's also not to be undertaken lightly, but it could be more cost-effective.

silkcutblue

I've never heard of grants being available to allow you to create your own charity up. Grants are normally for projects with goals that fit the aims and objectives of the grant making entity.

Worth noting is the fact that you don't need to be a charity to apply for many grants. Whatever happens, if you go for money from foundations/trusts/etc, then you will have to have accounts at the end of it.

More info on what you need: http://www.volresource.org.uk/briefing/fin_acs.htm

Sayaka

Katiehound wrote: »

Please may I put in my two penneth?

I have been told it is hard work for a very small charity to be registered due to the amount of paperwork, for example all finances will need to be audited so unless you have a tame financial whizz kid you may find that your cash flow increases both ways! Income up, red tape expenditure up too. I have no experience of this but remember the founder of a small charity saying it simply wasn't worth the effort.

If you have more than £5000 turn over per year I think you HAVE to register, there's no choice in the matter.

If you're under £5000 you can register as "Charity for Tax Purposes" which mean you can still claim Gift Aid etc. However you still need a formal committee, accounts, hold minuted meetings etc

It is right that you don't need a lum sum in the bank to become registered, it's that the money you've taken in must total £5000, it doesn't matter if you've spent it. So if you've taken over £5000 you're set - well, as long as you've kept accounts etc.

kingfisherblue

Sayaka wrote: »

If you have more than £5000 turn over per year I think you HAVE to register, there's no choice in the matter.

If you're under £5000 you can register as "Charity for Tax Purposes" which mean you can still claim Gift Aid etc. However you still need a formal committee, accounts, hold minuted meetings etc

It is right that you don't need a lum sum in the bank to become registered, it's that the money you've taken in must total £5000, it doesn't matter if you've spent it. So if you've taken over £5000 you're set - well, as long as you've kept accounts etc.

You don't have to register if you have more than £5000. I am a member of a small group which would fit charitable aims very well. Our income is in excess of £10,000, mainly from grants but with some self generated income. One large grant making trust advised us that we could consider becoming a charity, but when we looked into it further, the amount of red tape (and the increased workload that would result) meant that it just wasn't worth it. We did take professional advice, and there was nothing to say that we had to become a charity. Some large grant making organisations will give grants to groups such as ours, without us being a charity (Children in Need is one example - we're through to the final round and are just awaiting their decision).

We apply for grants that are available for community groups, and as long as you fulfill the criteria and complete the paperwork, it is possible to run this way. Of course, there are many more organisations that you can apply to if you are a charity, but it depends on whether you want the paperwork and if you can cover the costs of auditing.

Sayaka

kingfisherblue wrote: »

You don't have to register if you have more than £5000.

This page http://www.direct.gov.uk/en/HomeAndCommunity/Gettinginvolvedinyourcommunity/Charities/Startingacharity/Becomingaregisteredcharity/DG_194965 would suggest that you do, perhaps things have changed?

Unless you are one of the exempted organisations? (or don't live in England or Wales?)

Savvy_Sue

I haven't read the link but I suspect it's fine not to register as long as you don't describe yourself as 'a charity'. And not being a charity does give you more flexibility, eg if you had set up 'A Charity to care for elderly female greyhounds' and then found a young male spaniel which for some reason you felt you wanted to take on, that would be wrong because it's outside your charitable aims. Obviously these days you're unlikely to limit yourself to elderly female dogs of any description, but getting your charitable aims right first time - broad enough to do what you want, not so broad you can do anything - is key.

Sayaka

I agree about being careful with the charity's aim's wording.

However, re registering at all, this is what the Charity Commission's website says:

Charitable organisations based in England and Wales have to register with us if their income is over £5,000 a year. If you think your organisation may be charitable or you want to set up a new charity, our Start a new charity section has more information about what you need to do.

Charities are accountable to the public, so charities registered with us have to provide certain information about the way in which they operate and how they use their resources. We make this information available online so everyone can see how each charity’s money is used.

There are some exceptions/exemptions are listed here:

http://www.charity-commission.gov.uk/Start_up_a_charity/Do_I_need_to_register/Excepted_charities_index.aspx