Charity idea, help please.

redmel1621

Hi

I am after some advice please.

My husband has been considering setting up a charity. He is currently out of work, and with 4 kids I am badgering him to find work.

He seems to think that even as a charity you are allowed to take some kind of wage, but I can't see that.... how could you, where would the money come from?

I am all for him setting up a charity, but after he has found work...

please can someone clarify the position on this x

Murtle

People do take a wage from charities, you only have to look at the larger ones to see that. But starting one from scratch, it will be a long long time before he is fundraising enough to take a wage - because that is after all where the wage comes from, people's donations.

PlutoinCapricorn

Setting up a charity just to get some kind of income is not only not the right approach, it demonstrates a lack of understanding of what charities are about.

You start by thinking about what good cause you want to support, and why a new charity is necessary. You need to know about how to market and fundraise, also charity law: see https://www.charitycommission.gov.uk

New charities often operate with volunteers until they can prove that if they could appoint paid, professional staff, they would get more funding. It is unethical to use donations for salaries until you are established and can demonstrate that doing this will result in an increase in income.

lincroft1710

There are already far, far too many charities, even some of the big ones seem to overlap one another. Also there are some very dubious ones.

Redmel, you appear to have grasped the reality, unfortunately your husband does not. Like you, I hope it isn't too long before he gets a job, but as others have said this is a complete non starter.

redmel1621

Thanks Guys..

To be honest I think he was just saying it to 'appease' me lol.

Since posting he has actually said he wasn't wanting to set up a charity to 'earn' money from it.... I am obviously on his back a bit and he was trying to shut me up so he can get his own way. He has said he genuinely wants to help people and he has been thinking about it for a while.

Whilst I am not against him starting a charity and will gladly help/support him, I do think we need to sort out our own dire financial situation first.

I am encouraging him to look into maybe social enterprise, or just setting up as a small business but charge not much above cost prices... that way we would have a small income at least, and he gets to keeps fees very low for the people he is wanting to help

Thank you all for your replies xx

PlutoinCapricorn

In your case, charity definitely does begin at home: dependants come first.

There is a sticky about setting up a new charity on the Small Biz and Charity Organisers thread, but I would advise anyone who wants to do this to be absolutely sure that they really understand what is involved. For example, three trustees are the minimum you should have, and if you want to register with the Charity Commission you need £5,000. You need to understand data protection and Gift Aid.

It is important to understand that starting a new charity may not actually achieve anything extra: it might just divert money that people would have given to a similar charity.

redmel1621

Thanks for all your help everyone. Yes looking into it there does seem to be a lot strings attached, although he does really want to do something to help children from disadvantaged areas and from poor backgrounds, by providing a specific service. I also understand that there are many, many charities already and it states clearly on the charity commision website to check for similar charities etc...

ikati5 - I find your comments a bit hurtful to be honest. I asked on here because My husband (and I) were unsure if there were grants or some other kind of funding available to help, not because either of us want to take money from people to line our pockets... if we wanted to do that we would have already set up a charity with every intention of fleecing people...and I would not have been stupid enough to splash my idea/name/area etc about first would I! My husband specifically wanted to AVOID having to take money from anyone in order to provide a much needed service, which is why he was considering a charity over a business.

I have been pointed in the direction of social enterprise, as apparantly any fees charged are pretty much at cost. I think it is meant that those who are well off pay a regular rate and then you use that income to fund those who are in poverty etc...

Kind regards

lincroft1710

I can only again echo PlutoinCapricorn's post.

Your husband has 6 mouths to feed, these are his priority. Once he has a job and steady income, he can think about putting right the wrongs in the world. But when he does get to this stage, I would strenuously urge him to support one or more existing charities, rather than start another one.

ikati5

He seems to think that even as a charity you are allowed to take some kind of wage,

This is offensive! Why should I donate money to a charity to keep you and your kids? And the scam you are looking for is this: If you collect money for charity you only have to give them 5% of your takings , the rest is yours, kids charities are great because they really tug at the heartstrings and you could make fortune!

redmel1621

Without wanting to get into an argument, I did explain above that he basically said about taking a 'wage' as an attempt to stop my apparant nagging (oops) although I am sure you can undestand my own concerns about my kids welfare.... which is why I was wanting him to find work to bring in some money for us first! He however, seems to think we are managing just fine (thanks to my constant budgetting attempts) and so wants to use his passion in other areas and help families/their kids who are in a far worse situation than we are.

eta - He has been trying to find work, not he thinks we are fine so isn't bothering. S I think this was something to focus while/aswell as finding some kind of work.

I had no idea about the 5% rule, and I personally am in absolute disbelief that it could ever be the case....It is absolutely beyond disgraceful!!! I would never dream of collecting for a charity and only passing on 5% of peoples hard earned money, that they have given through their own kindness and generosity.

I am sorry that I worded my op so badly that is has given you (and possibly others) such a low opinion of myself and my husband.

I am not sure whether he has completely given up on the whole idea, because looking into it there is nothing identical in our area, although there are kind of similar charities within travelling distance so he is looking into them, and how genuine they are...then he may consider helping out there.

kind regards
xx

PlutoinCapricorn

I know that volunteering for a charity is an excellent way to gain experience, which may lead to paid work with an existing charity. Becoming a trustee can be rewarding too, although ideally candidates have relevant experience, knowledge and skills to contribute.

People who start charities because they genuinely want to make a difference often put their own money in, and know many people who will make donations to keep things going.

I just hope that educating potential donors will stop them supporting charities run by people who see them as their personal bank accounts and main source of income.