There are many advantages to being a charity including

• tax breaks;
• a good level of public trust;
• a defined purpose, acting for the public benefit.

BUT charities also have restrictions. For example:

• If you set up a charity you must apply to register it with the commission if it is a charitable incorporated organisation (CIO) or its annual income is more than £5,000, unless it is a specific type of charity that doesn’t have to register.
• Charities must follow charity law, which includes telling the Charity Commission and the public about their work.
• Charities can only have purposes the law recognises as being charitable – they can’t have a mix of charitable and non-charitable purposes.
• Charities must be independent – a charity can work with other organisations but must make independent decisions about how it carries out its charitable purposes.
• Charities must be run by trustees who are normally unpaid volunteers – they can only be paid where it is authorised.
• Charities can’t usually benefit anyone connected with the charity, for example giving work to a trustee’s family member or company, unless it is authorised.
• Charities can’t take part in certain political activities, such as campaigning for a change in government.
• Strict rules apply to trading by charities.
• Registered charities must provide public, up-to-date information about their activities and finances.
• Charities are outward facing – they can’t be set up to benefit the narrow interests of a closed group.