Think­ing of set­ting up a char­ity? Here are some things to con­sider first.

Kapi-Mana News - - OPINION/NEWS -

Ex­ist­ing char­i­ties

Be­fore you go to the trou­ble of es­tab­lish­ing a char­ity, con­sider what you are plan­ning to achieve and think about whether there is an ex­ist­ing char­ity that al­ready does what your pro­posed char­ity will do.

Are you able to as­sist, do­nate to, or part­ner with that char­ity, rather than es­tab­lish your own?

Some peo­ple like to es­tab­lish their own char­ity be­cause it gives them au­ton­omy, pro­file and an abil­ity to fo­cus on their par­tic­u­lar ob­jec­tive, whereas oth­ers may pre­fer to work as part of a larger team, be a si­lent fun­der or re­main anony­mous. Reg­is­ter­ing as a char­ity Af­ter es­tab­lish­ing your char­ity, it is a good idea to reg­is­ter with Char­i­ties Ser­vices of In­ter­nal Af­fairs and be­come a ‘‘ reg­is­tered char­ity’’.

This can be a rel­a­tively straight­for­ward process ( if your char­ity is com­pli­ant), and can be done on­line through the Char­i­ties web­site.

There are sev­eral benefits to reg­is­ter­ing your char­i­ta­ble or­gan­i­sa­tion, in­clud­ing be­ing ex­empt from pay­ing tax. Pur­pose Char­i­ties Ser­vices will look closely at your or­gan­i­sa­tion’s pur­pose when con­sid­er­ing your ap­pli­ca­tion for reg­is­tra­tion, so it is im­por­tant your pur­poses are char­i­ta­ble. A char­i­ta­ble pur­pose can re­late to: The re­lief of poverty. The ad­vance­ment of ed­u­ca­tion or reli­gion.

Any other mat­ter ben­e­fi­cial to the com­mu­nity.

Your legal ad­viser will be able to as­sist with de­ter­min­ing whether your pur­pose is ‘‘char­i­ta­ble’’.

What is ac­cepted as a char­i­ta­ble pur­pose changes over time.

For ex­am­ple, the Supreme Court has re­cently held that hav­ing a lob­by­ing func­tion does not pre­vent char­i­ta­ble reg­is­tra­tion. Rules To reg­is­ter as a char­ity, your or­gan­i­sa­tion needs to have a set of rules. Your rules should in­clude: The pur­poses of your char­ity.

Who the trustees (or other of­fi­cers) will be and how they are ap­pointed.

A state­ment that your or­gan­i­sa­tion is not car­ried on for pri­vate fi­nan­cial ben­e­fit or profit to an in­di­vid­ual.

What will hap­pen to the money and as­sets of your char­ity if it ceases to op­er­ate or ‘‘winds up’’.

How the rules can amended. Struc­ture You should think about what sort of struc­ture your char­ity will have.

For ex­am­ple, it may be prefer­able to es­tab­lish a cor­po­rate body, such as a char­i­ta­ble trust or an in­cor­po­rated so­ci­ety, com­pared to an un­reg­is­tered trust or so­ci­ety.

If an or­gan­i­sa­tion is a cor­po­rate body, it is able to fundraise, bor­row money, own prop­erty, em­ploy staff, or

be

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