How to set up a charitable fund?

[cupofteaplease]

My dd3 is severely disabled, and my work colleagues have generously organised a fundraiser to give us money to buy dd sensory equipment. They have mentioned other ideas they have in mind for fundraising, and I have one in mind too.

What do I need to do to set up a charitable fund? I don't think we would need to register as a charity? A bank account in her name wouldn't work as obviously it will be me spending the money on her behalf.

Does anyone have any experience of this?

IIRC, you can't set up a charity if it's for the benefit of only one person so you need a trust instead. I'll find you some information, and post some links.

www.hmrc.gov.uk/trusts/intro/basics.htm This is useful. You do need to seek legal advice though, as it can be tricky.

Thanks for the link, I'll take a look. So it would be raiding money for the trustees to spend on what they chose? Ie my dd?

They all have to agree, and it can only be for a specific purpose (my law's a bit rusty, so I hope I'm correct. Do check this though).

Hmm, I just read the link and it appears a charitable trust has to be for the benefit of several people or society in general, not just an individual. Looks like I need professional advice!

"What is a trust?

A trust is a legal arrangement where one or more 'trustees' are made legally responsible for holding assets. The assets - such as land, money, buildings, shares or even antiques - are placed in trust for the benefit of one or more 'beneficiaries' "

Ahh ok, I was looking at the subsection of charitable trusts. Maybe it is possible then!

I'm happy to look into this for you, I can't do it now though but can get back to you in a couple of days or so? I'm not a solicitor, I did study Equity and Trusts as part of a law degree though. I can do a little research and point you in the right direction if this will help? It'll be a lot cheaper (free) then paying someone to do this for you.

You don't need to set up anything to do this, they can just give the money to you and you can buy the equipment.

The normal purpose of a trust for a single disabled person is to hold income-generating assets to provide for the person's care when their parents are no longer able to; there are costs associated with setting up and running a trust and you would need to find Trustees to run it so it doesn't sound like a good solution for you.

However the best solution may be to work with an existing charity that provides this equipment: if they are willing to provide it for your DD your colleagues could raise funds for the charity (and donate via Gift Aid).