Getting paid / Running a Charity ?

[Freyfreysmum]

Does anyone here have knowledge of setting up a charity - I am in the early stages of implementing the ideas and inspiratiosns I have thought of for a loing time, in setting up a retreat here in Cornwall for blind and visually impaired. I however was hoping for a small salary, and wondered how this works. Or, do I set it up as a business rather than a charity, but then would it be charities funding places for the people to come and stay?

[Wigeon]

I haven't set up a charity but I used to work for the charity regulator, and later worked in government on the Charities Act. Whether you set it up as a charity depends on whether its aims and activities are charitable.

It might be simplest to think how you would expect to raise the money to set up and run the business: are you basically aiming for this to be a business, generating all its revenue from the people staying at the retreat, or are you basically proving respite for the clients and would hope to fundraise from charitable foundations and other organisations which might fund a charity (eg local authorities?).

On the salary point: if you think about it, many many charities have paid employees (Oxfam, British Heart Foundation, plenty of local charities), and so it is perfectly legitimate for your running costs to include a salary for the director (ie you). If you were applying for grants to fund the organisation then it would be completely normal to include salary costs within the grant application.

Have you thought of trying to find whether there is already a local or national organisation (probably charitable) which does something similar, which you could piggy back on? Much much easier than setting up something from scratch. How about contacting RNIB or Action for Blind People for advice?

There is some useful advice on the Charity Commission's websitehere (they are the regulator of charities).

The National Council for Voluntary Organisations might be able to give you more advice. They have a useful website, and a helpline. Info here. Also google your local Voluntary Service Council - they may be able to offer local advice.

Hope this helps a bit; if you have any other questions then I would be happy to share anything else within my competence!

[Wigeon]

Oh, just thought of a small point - many charities are set up so that they are registered companies as well as registered charities. It's to do with the fact that a charity can take several different legal forms, one of which is a company limited by guarantee (rather than shares, like most companies you might think of). I could bore you more about this but just thought I'd mention it briefly.

[Freyfreysmum]

Wigeon this is fantastic advice, which I will take action on. There are several organisations within the Duchy ie Cornwall Blind Association, and various others, but I know there is nothing like this retreat available, and I would love the appeal to be nationwide. We would have picnics on the beach, and sensory exhibitions down on the waterfront, with shells, corals, etc, I wont even start to prattle on about it but I have several 'packages' designed at age groups, backgrounds, etc. I have a RDA horse and a PAT dog who would be the base of my therapy on the animal front, and I have spoken to many volunteers who would offer their time. However, I know set up and running costs would dictate that fundraising etc will be an emmense, and long term effort. I know, somehow, I am going to do this, and thank you very very much for your advice and links.

[Wigeon]

Glad some of it might be useful. Your vision sounds amazing - what a wonderful idea.

I think you're right that the next challenge is going to be thinking about how to make it happen, and unfortunately a lot of that boils down to money. I'd definitely start making links with other charities, both those for visually impared people, and other charities which provide breaks for disabled people who aren't necessarily visually impared. They might be able to give you more concrete ideas about how to make your vision a reality. Have you heard of Break? They provide holidays and breaks for people with learning disabilities. See www.break-charity.org. Might be interesting to talk to them.

Anyway, good luck with your fantastic plans!And happy to help on anything technical related to charities.

[Bramshott]

There are 3 models for charities AFAIK:

1. Charitable Trust (exists to make grants)
   
2. Charitable Company
   
3. Can't remember the third one - it's something quite uncommon though.
   

Sounds as though you need a charitable company - so you register first as a company with Companies House (very easy) and then as a Charity afterwards with the Charity Commission (takes longer). You need Trustees (who can also be directors of the company) and to determine the charitable objects of the charity/company.

You should be able to take a salary as long as you aren't a Trustee. As a Trustee you can only claim expenses.

The Charity Commission website has all the forms on, and their helpline is pretty helpful too.

[Wigeon]

Bramshott - good advice about charitable companies, but hope you don't mind me just clarifying some of the other things you mention:

Trustees can in some circumstances be paid (over and above expenses). Charity Commission advice here.

There are a bunch of legal structures for charities, the most common being unincorporated association, trust or company limited by guarantee. The type of legal form doesn't place limits on the activity of the charity, so a charity set up as a trust isn't necessarily one which makes grants, and conversely, a charity whcih is a company limited by guarantee could give out grants.

I think the uncommon form you are thinking of is a Charitable Incorporated Organisation? There's also some weird forms, like ones set up by Royal Charter.

Sorry for the diversion, OP - you really don't need to worry about all this detail at the moment!

Hope you don't mind me mentioning this, Bramshott - I retain a slightly geekish interest in charity law from when I worked at the Charity Commission (glad you have found the helpline useful , and later worked on the team taking the Charities Bill (now the Charities Act 2006) through Parliament!