The right legal structure

As discussed in charities and campaigning if you are a registered charity, while you definitely have the right to campaign, there are restrictions.

If your primary and ongoing activity is going to be campaigning, however, registering as a charity is probably not the right legal structure for you.

In fact, a fundamental consideration is whether your campaign requires any legal structure at all, whether it is becoming a company, a social enterprise or some other ‘vehicle’.

Why you might want to become a registered charity

• Charities enjoy a favourable public perception. That is, your potential supporters will recognise that you are will not be profiting from your campaign.
• Charities are able to potentially access funding from a wide range of trusts and Government sources that are not always accessible to anyone else. There is considerable variation on this – for example:
  • The Baring Foundation was set up in 1969 to give money to charities and voluntary organisations pursuing charitable purposes”.
  • Tudor Trust - Funding Guidelines 2008-09 - “The groups we fund don’t have to be registered charities; we can also make grants to other groups as long as they have established charitable objectives.”
  • City Parochial Foundation - Funding Guidelines - “We fund registered charities, industrial and provident societies and friendly societies. In exceptional cases we will fund other types of organisations undertaking charitable activities.”
  • Joseph Rowntree Charitable Trust - “It is not necessary to be a registered charity to apply to the Trust. However, the Trust can only support work which is legally charitable as defined in UK law.”
  • Esmee Fairbairn Charitable Trust - “The purpose for which you are applying to us must be legally charitable and your constitution must allow you to carry out the work that you propose. If your organisation is not a registered charity, we will need to see a copy of your constitution or set of rules”

So it’s not a black and white issue – being a charity might make it easier to get funding, but it might not make a difference. What the funders above have in common, and presumably have in common with most trust funders, is that if you are not a charity BUT are still undertaking activity that could be described as ‘charitable’, you can often still access funding.

Why you might want to opt for a different structure

Some campaigning organisations decide against charitable status, precisely so they can pursue political purposes.

Such organisations can be set up as ‘non-profit distributing’, for example as a company limited by guarantee.
Or you can set up as a non-charitable Industrial and Provident Society – which basically allows you to conduct any legal business activity that does not involve investment for profit.
The London Voluntary Service Council have a good summary of some of the different legal structures you might want to consider in relation to organisations in England and Wales.

And while there are fewer opportunities, there are funders that specifically fund bodies that are ineligible for charitable funding. An example of this is the Joseph Rowntree Reform Trust who:

“...give grants for political, campaigning or lobbying purposes; support projects which are ineligible for charitable funding. It does so to promote political and democratic reform and defend civil liberties. It does not make grants for work outside the UK, research or projects eligible for charitable funding”.