Get funding to start a charity

This guidance is for people who are looking to raise funds because they are setting up a new charity.

Read guidance if you wish to raise money in aid of an existing charity, or in response to an emergency situation.

Before you start to raise funds

If you are setting up a Charitable Incorporated Organisation (CIO), you must register it with the Charity Commission whatever its income.

If you are setting up any other type of charity, you will need to prove that your charity’s income each year will be over £5,000 if you want to register it.

You can start to raise funds once you have the charity’s governing document and trustees in place.

You can raise money before your charity is registered, as long as you make it clear that you are not yet registered.

Sources of funding

You can raise money from the public, such as by running a fundraising event. It is important to get fundraising right. It doesn’t just mean your charity benefitting from the public’s financial support. It can also help your charity raise its profile and explain the difference it will make.

There are also laws that apply to fundraising, which you must comply with. Read our guidance about fundraising. It also explains the role of the Fundraising Regulator and the Code of Fundraising Practice.

Government funding

The Charity Commission does not fund charities. However, some charities are funded by central or local government. This funding can be given directly or through a funding body such as the Arts Council. Charities may also bid for contracts to provide public services (services that public authorities normally provide or commission themselves).

Read Charity Commission guidance if your charity is looking to get funding to provide public services.

Grants from other charities and private organisations

Many organisations, such as the National Lottery Community Fund, provide funds or grants to charities. Search for grants using these links:

• funding search – My Funding Central
• funding search – Sustainable Funding Cymru

You can also use the Commission’s charity search tool to look for charities which provide funding to other charities (choose the advanced search for more options).

Gift Aid

Your charity can use Gift Aid to increase the value of donations from UK taxpayers.

When people donate using Gift Aid, your charity can reclaim tax from HMRC. For every £1 donated, your charity can claim an extra 25 pence.

Additionally, under the Gift Aid small donations scheme, some charities are eligible to claim a top-up payment on their small cash donations.

HMRC advises on Gift Aid, the Gift Aid small donations scheme and other tax matters.

If your charity isn’t a CIO and your income is under £5,000 you don’t have to register with the Charity Commission. But you can apply to HMRC to recognise your organisation as charitable so that you can claim back tax on things like Gift Aid donations.