When setting up a charity, one of the first and most important decisions is choosing the right charity entity. The structure you choose will shape how the charity operates, how it meets its charitable objectives, and how responsibilities are shared by the board of trustees.
There are several types of charities in the UK, and picking the right entity can seem complex. The differences aren’t always obvious, but the choice you make will impact liability, governance, and compliance requirements.
The table below outlines the main charity entities, where they are registered, and their key traits. This is not an exhaustive list, but it highlights the most common options when setting up a charity.
| Type of Charity | Registered with | Traits |
| Registered Charity (Unincorporated) | Charity Commission |
|
| Charitable Incorporated Organisation (CIO) | Charity Commission |
|
| Company Limited by Guarantee | Companies House |
|
| Company Limited by Guarantee and Registered Charity | Companies House & Charity Commission |
|
| Trust | Charity Commission |
|
| Community Interest Company (CIC) | Companies House |
|
Choosing the Right Charity Entity
The best charity entity for your organisation depends on your goals, the level of liability protection needed, and how the charity plans to operate day to day. For example, a CIO is often the preferred option for the new charities because it provides limited liability without requiring dual registration with Companies House. However, for larger or more complex organisations, a company limited by guarantee with charity registration may be more suitable.
If you’re unsure which of the types of charities is right for your organisation, professional advice can help you weigh up governance, compliance and liability considerations before you commit.
FAQs About Charity Entities
What are the different types of charities in the UK?
The most common types of charities include Charitable Incorporated Organisations (CIOs), companies limited by guarantee (with or without charity status), unincorporated charities, trusts, and Community Interest Companies (CICs). Each has different structures, governance rules and liability protections.
What is a charity entity?
A charity entity refers to the legal structure chosen when setting up a charity. It determines how the charity is governed, whether trustees are personally liable, and how the organisation interacts with regulators such as the Charity Commission or Companies House.
Can you call a charity a company?
Yes, some charities are set up as companies limited by guarantee and are registered with both Companies House and the Charity Commission. These organisations have both a company number and a charity number.
What classifies you as a charity?
To be recognised as a charity, your organisation must have exclusively charitable purposes (such as advancing education, relieving poverty or promoting health) and must operate for public benefit.
Do charities need to register with HMRC?
Yes, charities need to register with HMRC if they wish to claim tax reliefs such as Gift Aid. Registration with the Charity Commission is separate from HMRC registration.
What sector does a charity come under?
Charities operate in the voluntary and community sector (sometimes referred to as the “third sector”). They are not-for-profit organisations working for public benefit.
