To set up my own charity

[Ballstothislark]

I would like to set up a charity. One that would provide work for my DS who has autism and hopefully for others who find it hard to find work through the usual channels.
Im not sure what this would look like yet..... Perhaps a cafe community hub type place where people in need of some support could come. Has anyone set up their own charity and how difficult is it? Appreciate all experiences good and bad.

Why can’t you just open up a cafe and hire your DS to work there?

It's not a charity then, is it?

No, but OP said it’s for her son to work in. I own my own shop, which takes about 60 hours a week to run. If I also wanted to get charitable donations and do fundraisers, I would need to put in the same amount of time again. What would the OPs donations go towards paying that the turnover of the cafe wouldn’t?

One of the biggest challenges would be how to fund it, I guess. The initial funding to get it started and the ongoing funding to keep it going. Would you envisage it being self-funding (e.g. like a social enterprise) or would you need to rely on fundraising?

Apart from that, you'll need to look into registering with the Charity Commission, appoint a board of trustees, look into any compliance requirements that might be relevant, get the appropriate insurances in place, write any required policies etc. You'll probably need to produce some sort of business plan setting out what you're trying to do and how you're going to go about it etc.

The support that op says the cafe would provide?

It could potentially be run as a social enterprise, rather than a charity. Ie not for profit.

Ah, sorry. I forgot that bit. I just thought it was for giving people jobs and work experience.

Thats how I read it as well, so not to worry as I too skim read

If in Scotland, the charity would be registered with OSCR and everything you need to know for that process is on their website. I have a set up a charity in Scotland. It was pretty straightforward so long as you have ither people preparedto be trustees.

I think the setting up a cafe might be more challenging. It is a risky business. You need to invest in stocks, much of which will have a short shelf life. If you can find premises for free or next to nothing and with a captive audience that would be a big gead start. In Scotland there are government funded advisors who can help with a business plan for a charity. Possibly also in rest of UK.

I would suggest if you struggle at the research stage, avoid the whole thing as you will need to be determined and resilient. I have been in tears over filing the annual accounts on more than one occasion. Might just be me!

Are you certain there isn't already something like this anywhere near you?

Look into community interest companies, this would be a model for what you propose. There's plenty out there for you to see if it would work in your area.

My ASD son would really struggle with working in a cafe. Too much face-to-face stuff. He needs rest breaks when we have people round as he can't cope with too much noise / too many people.

OP

Would it not be easier for your son to volunteer in one that is already set up?

Question. Those that set up charity shops, do they get paid, and if so how much and is there an independent person looking over the charity?

I still believe it may be easier and less stressful for OP to get son into some charity, volunteer setting to gain experience/confidence etc.

It’s up to charities whether they pay their staff or hire volunteers.

Charities are regulated by the Charity Commission.

I assume that the idea is that some people might struggle to access work in a standard working environment, and they need more support to be able to do this.

I think such a venture could be run as a social enterprise, but I guess it might depend on how much support would be needed, and whether the "business" would generate enough income to support this. I suspect that some fundraising would probably be needed to supplement earned income.

If the OP wants to go down the social enterprise route, she will need to consider whether to set up as a charity or as a CIC (community interest company) or a charity. Different governance and regulatory arrangements for each.

Hi OP, I founded and run my own charity. It's not at all easy and takes over your life but if you've got the time and energy then go for it! However, in your case it sounds like a Community Interest Company might be more suitable.

As a charity trustee you wouldn't be able to draw a salary and you would most likely be prohibited from employing a relative - good governance of charities require there to be lots of hoops and red tape to avoid conflict of interests with trustees, making it extremely difficult and unlikely you would get permission to do this. Setting up a charity, finding trustees, registering it and getting approval takes months, maybe up to a year.

A CIC however is basically just like a limited company but with the proviso it exists for the benefit of the community and not the shareholders. Since it is a company you could set it up yourself online straight away for a tiny fee. You could still fundraise for grants from organisations which award to CICs and you could trade in the cafe. You would obviously need to register the company with HMRC and as a company director you would legally be obliged to hire an accountant to do your company and personal tax returns. The paperwork and obligations for a company director are far less onerous than those under charity law however.

An extra idea for you is that you can sub-lease empty commercial property for free because your CIC or charity is undertaking charitable work inside. The leaseholders get a massive reduction on their business rates they'd be paying on the vacant property as they are allowing charitable activity - you can often find suitable properties you can use for a number of years. You do need to be willing to vacate with just a few months notice however.

Have a look at ThirdSector.co.uk to read about the different company structures.

Many thanks

So, correct me if I am wrong. OP sets up a charity, employs DC and pays him if there is enough money coming in plus bills for the shop, NI etc etc?

What happens to the shop, lease if not enough money coming in to pay rent etc, will OP be held liable by the LL?

Thanks

Update

Excellent post by FM above me - all answered.

I do agree that this certainly won't be an easy route. You will have to be very dedicated and willing to put in a lot of work. You will need to do a lot of research. And there is always the risk that it just won't work.

That isn't to say that it isn't worth doing, assuming that there aren't other organisations in your area already offering something similar. But it isn't for the fainthearted!

Absolutely! I love learning all this stuff.

Me as i posted the question and posted, I then saw the post - explained in plain English ie easy to understand and follow

No wonder you see so many charity shops in run-down towns and cities because of the free rentals etc - great post, very helpful to all, especially OP

Any charity needs alot of experienced people to come together to launch it.

You need some very good trustees for one and knowledgeable ones. Not to be taken lightly.

This is so helpful. Thank you

Yeah cos it's really easy to just "open up a cafe"