Anyone can set up a charitable foundation if he/she decides to set a part of their income or assets for charity purposes. A registered charitable trust is especially suitable if you wish to donate regularly for a variety of causes. Setting up a charitable foundation helps in the systematic planning of contribution either solely or by assisting others in gifting a trust fund. To start a philanthropic foundation, you need to have enough resources and the right motivation.
The process of jump-starting a charitable organization isn’t for the faint-hearted. It requires research and careful adherence to legal procedures. Below is a guide on how to set up a charitable organization:
Get trustees
The trustees are responsible for the running and governing the foundation. They give the direction on its management. The least number of trustees should be three.
Have a purpose that benefits the public
A charity organization must have a charitable purpose. The reason may be saving lives, eradicating poverty, promoting arts, saving lives, and animal welfare. It’s important to note that a charity cannot be standard to benefit one particular individual.
Choose a name for the foundation
There are several guidelines for the naming of a charity organization. For instance, the use of the name charity needs the approval of the charity commission. The name can be generic, charitable purposes, or even your family name. Once you have thought of a name, use the gov.uk’s.com pointers link to check if your name is acceptable or taken.
Provide a structure
The structure involves providing a guideline on how and who runs the charity. It also states whether the charity can offer employment to people or even own property.
Develop a governing document
The governing document is said to be the rulebook. It lays down the rules on the running and guidelines that govern the charity. It also has the funding plan and the plan for the foundation’s investment plan. The trustees need to sign this governing document in the presence of independent witnesses.
Registering the charity
This final step requires you to undergo a registration process for a foundation with an over $5,000 annual income. The good news is that there is no registration fee.
A charitable organization is an effective way of ensuring proper channeling of philanthropic activities. If you love to give to charity, the above guide can help you take the bold step of starting a charitable foundation.