What is a charity?
Charities are not-for-profit organisations that undertake activities that
contribute to society. In England and Wales charities with annual incomes over
£1,000 and charities holding charitable assets - such as land and buildings -
are required to register with the Charity Commission.
Small charities and some religious organisations therefore do not have to
register and are called "excepted charities". Some specific types of larger
charities are also not required to register because they are regulated by
agencies other than the Charity Commission. These charities include
universities and are called "exempt charities".
Other types of organisation also undertake activities that contribute to
society. These include voluntary and community organisations and social and
community enterprises.
GuideStar UK will extend its coverage to include all organisations that have
been set up to undertake activities that contribute to society.
What do charities do?
The origin of formally constituted charities in England and Wales can be traced
back to Elizabethan times. In 1601 three specific categories of charitable
activities were identified: the relief of poverty, the advancement of education
and the advancement of religion. Over the past 400 years the scope of
activities recognised as charitable has expanded and will shortly be legally
defined to include the following charity categories:
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advancement of health; science, culture, arts and heritage; amateur sport;
environmental protection and improvement
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promotion of human rights; conflict resolution and reconciliation; animal
welfare
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provision of social housing; social and community advancement; other purposes
beneficial to the community
In addition to these charity categories it is important to recognise the
services that charities provide, who their beneficiaries are and where they
operate. In broad terms charities perform three services:
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they provide help
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they represent or campaign
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they provide resources such as grants or volunteer help
Charities have three main types of beneficiary group:
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individuals - including the elderly, children etc
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institutions - including hospitals, schools etc
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the environment - including the conservation of land, animals etc
The area of benefit of charities extends from individual local communities to
regions, countries, continents and, in some cases, worldwide.
How many charities are there?
GuideStar UK holds information on the 168,000 registered main charities in
England and Wales. All these charities are required to make annual returns to
the Charity Commission. All those with annual incomes over £10,000 are required
to file annual reports and financial statements. Approximately 60,000
registered main charities file such documents.
We do not hold information on the 22,000 subsidiary charities that are recorded
on the Charity Commission's Public Register of Charities but are not required
to complete annual returns nor file annual reports and financial statements.
Who works for charities?
The work of charities is undertaken by both volunteer and paid staff. Many of
the larger charities use a combination of volunteer and paid workers. However,
the vast majority of charities are run solely by volunteers.
Trustees are a special form of volunteer - it is these people who are legally
responsible for the work of the charity. Other volunteers contribute to the
work of charities by directly helping people and by fundraising, campaigning,
and undertaking administration.
Find
out about volunteering for a charity.
How much money do charities spend each year?
It is estimated that registered charities in England and Wales spend £36
billion each year. Most of this money is spent on charitable activities,
including on grants to individuals or other charities. However, charities also
have to spend money in order to generate the funds they need. These income
generating activities include fundraising initiatives, running trading
subsidiaries and charity shops, and the management of investment assets.
Where do they get this money from?
Charities receive funding from five main sources:
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Donations and gifts from individuals - including legacies / charitable bequests
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Grants from charitable trusts and companies
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Fees for delivering services - including Government contracts
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Income from the investment assets such as shares that charities hold
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Profits from trading subsidiaries and charity shops
Find out about
giving to a charity.
Find out more
Office of the Third Sector - opens new browser window.
The Office of the Third Sector was created in May 2006, incorporating the responsibilities of the Active Communities Directorate in the Home Office, and the Social Enterprise Unit in the Department for Trade and Industry. The decision to place the Office of the Third Sector at the centre of government in the Cabinet Office was taken in recognition of the increasingly important role the third sector plays in both society and the economy.
National Association of Councils for Voluntary Service - opens
new browser window.
The source for information on the local voluntary and community sector. NACVS
act as a voice for charities, and voluntary and community organisations working
at a local level.
National Council for Voluntary Organisations - opens new
browser window.
The source of information on the voluntary and community sector as a whole.
NCVO represent charities and the voluntary and community sector in England.