Fundraising and Charity Law
The Charity Commission
The Charity Commission is a very valuable resource, for charities which are UK based particularly. The Charity Commission is the regulatory body which registers all charities within the UK.
Helping charities to enhance their accountability is one of their aims, along with encouraging effectiveness and impact; ensuring legal compliance; and promoting the public interest in charity. Their site is a mine of information and really worth looking at. As a fundraiser, it is also important for you to be familiar with the legalities of fundraising. Wherever you are in the world, find out from your charity authority what fundraising law is in your country.
If you are thinking of setting up a charity, the Charity Commission can guide you step by step. In England, you are required to have raised £5000 before your organisation can be formally registered. You are able, however, to raise money prior to this, provided you have complied with all the current legislation, and have a proper constitution and suitable, trustworthy Trustees in place. You are also required to ensure that your accounts are properly kept. » Full information is given on the Charity Commission website
Help from the HMRC for Small Charities
If your new charity has not yet raised the required £5000
or if your charity is exempted by statute, such as universities,
recognition of charitable status by the Inland Revenue is
sufficient proof of your charitable operation. This may be useful
if your charity is applying to Trusts and Foundations, which would
otherwise generally not support unregistered charities. An
application form is available, with information on how to apply, at
HMRC (Department of Revenue and Customs):
http://customs.hmrc.gov.uk
Good accounting practice
Good accounting practice, whether you are a small charity or a large one is also expected by the Charity Commission, which publishes each charity's accounts annually on their website. Employing a good book-keeper or accountant, or finding a retired accountant or banker as a volunteer to do your book-keeping is essential to ensure accountability. Your local volunteer centre would also be a good place to contact if you are looking for such volunteers.
Teresa Harrington has written a book
specifically for charities on this topic -
Accounting and Reporting by Charities
(the link to this book is via Amazon where reviews of the book may
be seen and the book purchased. The book is also available through
other reputable booksellers).
Submitting your accounts to the Charity Commission
If you are a registered charity, it is essential each year to submit your audited accounts to the Charity Commission. The Charity Commission has a system which publishes whether or not a charity is late in submitting its accounts to them. The credibility of a charity can be at stake if supporters view the information and discover that it has regularly submitted its accounts late!
Books and useful links about Charity Law
Voluntary But Not Amateur: A Guide to the Law for Voluntary
Organisations
by Ruth Hayes
(the link to this book is via Amazon where reviews of the book
may be seen and the book purchased. The book is also
available through other reputable booksellers).
»
www.cabinetoffice.gov.uk
The Cabinet Office is the UK government office which is responsible
for charity law. Their site has some useful information on it.
The
Charity Law Association
A member association offering charities and lawyers opportunities
to discuss charity law and related issues, and to receive updates
on charity law as they occur. Charities can become members.
Where there are legal issues within charities, it may be necessary to employ solicitors who specialise in charity law to resolve any problems or disputes. Look in your local area, where there are likely to be well respected solicitors firms or ask other charities in your area who they may have used.
