...in order that we can enjoy a tax free status and also to offer our organisation protection

If we were not registered as a charity then we would have to seek status as a company limited by guarantee or some other legal entity. For example, if we registered as a Charitable Company then we would come under the Companies Act 2006. (6) Either way, we would not be free from rules, regulations and ultimately legal responsibility.

(6)Click below for more information on 'Supporting Charities'.

The main advantages of being a charity are that charities: do not normally have to pay income tax, capital gains tax, or stamp duty, and gifts to charities are free of inheritance tax; can get special VAT treatment in some circumstances; are often able to raise funds from the public, grant-making trusts and local government more easily than non-charitable bodies; can formally represent and help to meet the needs of the community; are able to give the public the assurance that they are being monitored and advised by the CC; can seek advice from the CC; and can get information from the CC, for example, the range of free publications. (7)


(7) Click below for more information on Charity Commission publications.

There are restrictions on what charities can do, both in terms of the types of work they do, and the ways in which they can operate. A charity must have exclusively charitable purposes. Charity law imposes certain financial reporting obligations; these vary with the size of the charity. (8)


(8) Click below for further information from the CC website.