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Written by Brad Askew
Legal Tech Founder
Civil & Commercial Law background · Founder of LegalDocuments.co.uk
We’re not a law firm — we help you find the right legal support. For advice on your situation, speak to a legal adviser or find a solicitor.
Updated April 2026 · England & Wales
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Charity & NFP Law
BA
Written by Brad Askew Legal Tech Founder
Civil & Commercial Law background · Founder of LegalDocuments.co.uk
Updated May 2026
·
England & Wales
Running a charity in England or Wales means juggling far more than a good cause. Trustees carry personal duties, governing documents must be followed to the letter, fundraising activities fall under specific rules, and the Charity Commission expects reporting, transparency and proper stewardship of funds.
Get it wrong and the consequences land on the trustees personally, not just the organisation. I'm Brad Askew, Legal Tech Founder at LegalDocuments.co.uk, and this page is here to help charity trustees, founders and staff understand the legal landscape their charity sits within.
Below you'll find a plain-English overview of the main legal questions charities face, from choosing a structure through to handling disputes, along with pointers to the official bodies that regulate the sector. If you'd rather talk a specific question through with someone experienced, you can book a telephone call with a legal adviser from the CTA on this page.
Overview
Charities in England and Wales operate inside a legal framework that is narrower and stricter than most people expect. A charity must exist for purposes the law recognises as charitable, it must deliver public benefit, and the people running it (the trustees) sit under duties that resemble those of company directors but often go further.
Unlike a private business, a charity's income and assets cannot be used for private gain, and decisions must be made collectively, carefully, and in the charity's best interests. The main regulator is the Charity Commission, though fundraising is overseen separately by the Fundraising Regulator, and charities operating as companies also answer to Companies House.
The rules touch on everything: how the charity is set up, what its governing document says, who can be a trustee, how trustees make decisions, how funds are held, how donations are received, how employees are treated, how data is handled, and how the charity wraps up if it closes. This page gives an overview of the key touchpoints and signposts where to go for verified information.
Key steps
01
Choose the right legal structure for what the charity will do. Charities can take several forms, including a Charitable Incorporated Organisation (CIO), a charitable company limited by guarantee, an unincorporated association, or a trust. The right choice depends on whether the charity will employ staff, hold property, enter contracts, or carry risk. Incorporated forms limit trustee liability; unincorporated ones do not.
02
Draft a governing document that matches the charity's purposes. Every charity needs a governing document, constitution, articles, trust deed or similar, setting out its charitable objects, trustee powers, decision-making rules and what happens on dissolution. The wording of the objects clause is particularly important because it defines, and limits, everything the charity is legally allowed to do.
03
Register with the Charity Commission where required. Most charities with annual income above the current registration threshold must register with the Charity Commission, and CIOs must register regardless of income. Check gov.uk for the current threshold. Registration involves submitting the governing document, trustee details and evidence that the purposes deliver public benefit.
04
Put trustee duties and governance practices into day-to-day operation. Trustees must act in the charity's best interests, manage resources responsibly, avoid conflicts of interest, and comply with the governing document and charity law. In practice this means regular trustee meetings, proper minutes, a conflicts of interest policy, financial controls, reserves policy and clear delegation where staff are involved.
05
Meet ongoing reporting, fundraising and compliance obligations. Registered charities file annual returns and accounts with the Charity Commission, and charitable companies file separately with Companies House. Fundraising activities should follow the Code of Fundraising Practice, and charities handling personal data must comply with UK GDPR and the Data Protection Act. Employment, safeguarding, VAT and premises rules may also apply depending on the activity.
Common questions
QDo all charities need to register with the Charity Commission?
Not automatically. Charitable Incorporated Organisations must register from the outset regardless of income. Other charities generally need to register once their annual income crosses the threshold set by the Commission, check gov.uk for the current figure. Some charities are exempt or excepted by specific rules. Even where registration isn't required, the organisation still needs to behave as a charity and meet charity law duties.
QWhat liability do charity trustees carry personally?
It depends on the charity's structure. Trustees of unincorporated charities (trusts and associations) can be personally liable for debts and contracts entered into on the charity's behalf. Trustees of incorporated charities (CIOs and charitable companies) generally have limited liability, though they can still be held personally responsible for breaches of trustee duty, wrongful trading, or acting outside the governing document.
QCan a charity pay its trustees?
The default position is that trustees act voluntarily and are only reimbursed for legitimate expenses. Payment for serving as a trustee, or for providing services to the charity, is tightly controlled and usually requires express authority in the governing document, Charity Commission consent, or a specific statutory power. Conflicts of interest must be managed carefully whenever any trustee benefit is in play.
QWhat rules apply to charity fundraising?
Fundraising in England and Wales is overseen by the Fundraising Regulator, which maintains the Code of Fundraising Practice. Specific activities like street collections, lotteries, raffles and public charitable collections have their own licensing and legal requirements. Charities must also handle donor data in line with UK GDPR, and must not make misleading claims about how donations will be used.
QWhat's the difference between a CIO and a charitable company?
Both offer trustees limited liability and a separate legal personality, but a CIO is regulated only by the Charity Commission, while a charitable company limited by guarantee is regulated by both the Charity Commission and Companies House. CIOs generally mean less dual reporting, whereas charitable companies are a more familiar structure for those who've worked with standard limited companies before.
QDoes a charity need a written safeguarding policy?
If the charity works with children, young people, or adults at risk, safeguarding is treated as a core trustee duty by the Charity Commission, and a written policy is strongly expected. Even charities that don't work directly with vulnerable groups should consider safeguarding for staff, volunteers and beneficiaries. The Commission publishes guidance on what a reasonable safeguarding approach looks like.
QWhat happens if a charity wants to close down?
Closure is governed by the charity's dissolution clause in the governing document and by charity law. Remaining assets generally must be transferred to another charity with similar purposes, they cannot be distributed to trustees or members. The Charity Commission must usually be notified, final accounts filed, and, for CIOs and charitable companies, separate dissolution steps followed before the entity is formally removed.
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Brad Askew Legal Tech Founder
Brad has a background in civil and commercial law and founded LegalDocuments.co.uk to make clear, reliable legal information accessible to everyone. This site is not a law firm and does not provide regulated legal advice.
Legal disclaimer
This article is for general information only and does not constitute legal advice. We are not solicitors. For advice on your specific situation, please consult a qualified solicitor.
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