What is a charity?
A charity is an organisation that:
- Has a clear purpose or objective that falls within the 13 descriptions that Parliament has agreed are charitable.
- Operates wholly for the public benefit.
The 13 descriptions are set out in the Charities Act, and include:
- The prevention of poverty.
- The advancement of the arts, culture, heritage or science.
- The advancement of education.
- The advancement of citizenship or community development.
Regulation
Charities are regulated by the Charity Commission of England and Wales, and and most charitable organisations with an annual turnover of over £5000 must register with the Commission. The charity sector benefits from tax breaks, a good reputation, and access to a wide range of funding from trusts and foundations. Registered charities are subject to a higher level of regulation, which could include personal criticism of charity managers and trustees if the Commission believes that there has been mismanagement.
The Office of the Scottish Charity Regulator (OSCR) regulates Scottish charities with the aim to build trust and confidence in the sector, holding Scottish charities to account. It also regulates other charities that have a cross-border charitable status.
The Charity Commission for Northern Ireland oversees charity regulation in Northern Ireland. It promotes good governance, investigates misconduct, and makes information public. It has started to register charities.
