To be considered a charity, a group must have charitable purposes and benefit the public. An unregistered charity could still be a charity under common law. Small unregistered charities must comply with charity law. They could be investigated by the Commission, even if not required to register.
How many unregistered charities are there in the UK?
There are over 100,000 unregistered charities in the UK. That’s about a quarter of all UK charities. These are also called small charities, clubs, or community groups. They are run by volunteers and aren’t registered with a regulator. Setting up and running a charity takes a lot of work.
Overview of Registered and Unregistered Charities
An unregistered charity isn’t incorporated. Those running it are not protected by limited liability. Registered charities tend to be seen more positively by donors. Some trusts and companies will only fund registered charities. Registration with the Charity Commission takes time.
CEO Compensation and Funding for Charities
Larger charities tend to pay higher CEO compensation. The bigger the charity’s expenses, the more the CEO earns. Public charities use publicly-collected funds. Private foundations are created by individuals or businesses. The only difference is how they get funds.
Setting up a Charity
Setting up a charity takes time. Funding restrictions specify what donations must be used for. Unrestricted funding allows charities to use money where it’s needed most, supporting organizational development. People are key to a charity’s success.