Charity law in the UK varies between England and Wales, Scotland and Northern Ireland, but the basic principles are the same. Most charities must be registered with the appropriate regulatory authority in their jurisdiction, but significant exceptions apply, so that many organizations are bona fide charities but do not appear on the public register. The registers are maintained by the Charity Commission for England and Wales and, for Scotland, by the Scottish Charity Oversight Authority. The Charity Commission of Northern Ireland maintains a register of charities that have been formally registered (see below). Filing organizations must meet specific legal requirements, summarized below, have filing requirements with their regulatory authority, and are subject to audits or other forms of review. The oldest charity in the UK is The King’s School, Canterbury, founded in 597.
The Lobbying Transparency, Nonpartisan Campaigns and Trade Union Administration Act of 2014 subjects charities to regulation by the Electoral Commission in the run-up to the general election.
The Charities Act of 2011 lists charities as follows.
Prevention or alleviation of poverty
promotion of education
promotion of religion
improving health or saving lives
advan cement of citizenship or development of society
development of art, culture, heritage or science
development of amateur sports
promotion of human rights, conflict resolution or reconciliation, or promotion of religious or racial harmony or equality and diversity
promotion of protection or improvement of the environment
helping those in need because of youth, age, ill health, disability, financial hardship or other inconvenience
improving the protection of animals
improving the effectiveness of the Crown Armed Forces or police, fire and rescue services or ambulance services
other purposes currently recognized as charitable purposes and any new charitable purposes that are similar to other charitable purposes.
The charity must also provide for the public good.
Prior to the Charities Act of 2006, which introduced the definition in the 2011 Act, the definition of charity emerged from the list of charitable purposes in the Charities Act of 1601 (also known as the Statute of Elizabeth), which has been interpreted and expanded to much of the case law. In Commissioners for Special Purposes of Income Taxation v. Pemsel (1891), Lord McNaughten identified four categories of charity that could be distinguished from the Charity Act and which were the generally accepted definition of charity prior to the Charity Act of 2006.
poverty,
promotion of education,
promotion of religion, and
other purposes deemed beneficial to society.
Charities in England and Wales such as Age UK, the Royal Society for the Protection of Birds (RSPB ) and the Royal Society for the Protection of Animals (RSPCA ) must comply with the requirements of 2011. Act governing such matters as reports and accounts of charitable activities and fundraising.
Structures
As of 2011, there are several types of legal structures for charities in England and Wales.
A charitable registered organization
An unincorporated association is the most common form of organization within the voluntary sector in England and Wales. It is essentially a contractual agreement between people who have agreed to come together to form an organization for a specific purpose. An unincorporated association usually has as its governing document a constitution or set of rules that will address such matters as the appointment of officers and rules governing membership. Although the organization is not a separate legal entity, it cannot take legal action, borrow money, or enter into contracts in its own name. Its officers may be personally liable if the charity is sued or has debts.