Starting a charity can be a great way to address a need in our community. However, setting up and running a charity comes with legal responsibilities and ongoing commitments.

Before starting a new organisation, it is worth taking time to consider whether a new charity is needed, what its purpose will be, and who will help run it. You should also understand the legal requirements for charities in Guernsey.

This guide outlines the key things to consider when setting up a charity in the Bailiwick.

Setting up a new charity is not always the best option. In some cases, it may be more effective to work with an existing organisation.

Possible alternatives include:

• partnering with an existing charity

• running a project within another organisation

• setting up an informal community group

• working with a charity that already supports the same cause

This can reduce administration and allow you to focus more time and resources on delivering activities and support.

Choosing a structure

Charities can be set up in a number of different ways. The most common structure for smaller organisations in Guernsey is an unincorporated association with a constitution.

Other structures sometimes used include:

• a charitable trust

• a company limited by guarantee (suited to charities employing staff or holding larger assets)

The right structure will depend on factors such as:

• the scale of activities

• whether the charity will employ staff

• financial risk and liability

• governance arrangements

Many small community groups start with a simple constitution and committee, while larger organisations may choose a more formal structure.

Registering with the Guernsey Charity Register

Some charities and non-profit organisations must register with the Guernsey Registry.

Registration is generally required if an organisation:

• has assets of £100,000 or more, or

• has annual income of or over £20,000, or

• raises or distributes funds internationally.

Organisations that meet these criteria must provide certain information to the Registry, including details about their activities, finances and those responsible for running the organisation.

Smaller organisations that operate only locally and fall below these thresholds may not be required to register, although it is recommended that they do so, especially if they are seeking to apply for grants or sponsorship.

Governing Documents

Every registered charity needs a governing document. This is the document that explains how the organisation will operate.

It is often called a:

• constitution

• trust deed

• articles of association

The governing document usually includes:

• the charity’s name and purpose

• how trustees or committee members are appointed

• how meetings and decisions are made

• how funds can be used

• rules on conflicts of interest

• what happens if the charity closes

A clear governing document helps ensure the organisation is run properly and that everyone understands their roles and responsibilities. Check out the Governing Document section for more guidance.

Managing Officials (Committee Members)

There is a minimum requirement for managing officials:

• Voluntary registered charities and branches must have at least two managing officials to fullfil three roles (chair, secretary, treasurer)

• Compulsory registered charities must have at least three managing officials

• Internationally active charities must have at least 4 managing officials

• The treasurer must not be personally connected to at least one of the other managing officials (for example, not related or living together).

All managing officials are required to register their details with the Guernsey Registry and will be given a Person Identification Number.

These managing officials are responsible for the direction and control of the charity and must have appropriate skills and integrity.

Many local charities choose to have more than three managing officials to ensure diverse skills and reduce risk, even where a smaller number would meet the minimum.

When you don’t need to register

Not all community organisations need to register as charities.

If an organisation has small income and assets and operates only locally, it may not meet the thresholds that require registration under the
Charities etc. (Guernsey and Alderney) Ordinance, 2021.

However, even if registration is not required, organisations should still:

• keep accurate financial records

• ensure funds are used for their stated purpose

• have clear governance arrangements

Some organisations choose to register voluntarily to increase transparency and credibility with funders.

Annual Validation

All registered charities and NPOs are required to validate their information annually and to file any chances of managing officials or a change of charitable purpose.