There are several steps you should follow in setting up a charity:
1. Find trustees who will be willing to take responsibility for administering the charity.
2. Make sure the charity has charitable purposes for public benefit.
3. Choose a name for your charity.
4. Choose a structure for your charity (unincorporated association, company limited by guarantee, trust, etc.).
5. Create a governing document (constitution, bye laws, trust deed etc.) which includes:
- a dissolution clause stating that if the charity is wound up, its net funds and other property will be given to another registered charity with similar aims and purposes;
- a bank mandate requiring financial transactions to be approved by two independent directors, one of whom should be the Treasurer.
6. Ensure you are familiar with the additional requirements for charities:
- Annual reporting requirements;
- Anti-Money Laundering and Anti-Terrorist Financing requirements;
- Vulnerable Persons Policy for charities that work with youth, seniors, or disabled persons.
There are many laws and regulations involved with starting and running a charity. If you are thinking about starting a charity, you need to be familiar with everything that will be expected of you if you do.