Key facts

Definition of a charity

The Charities Act 2006 defines a charity as a body or trust which:

• is for a charitable purpose, and
• is for the public benefit.

It includes descriptions of the main purposes which are charitable:

• the prevention or relief of poverty
• the advancement of education
• the advancement of religion
• the advancement of health or the saving of lives
• the advancement of citizenship or community development
• the advancement of the arts, culture, heritage or science
• the advancement of amateur sport
• the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity
• the advancement of environmental protection or improvement
• the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
• the advancement of animal welfare
• the promotion of the efficiency of the armed forces of the Crown; or the efficiency of the police, fire and rescue services or ambulance services, and;
• any other purposes charitable in law.

This list covers the majority of purposes which are already charitable; the last category means that everything which is currently charitable is included.

Number of charities

As at September 2006, there were over 168,000 main registered charities in and .

We keep the Public Register of Charities, which holds details of all the registered charities in and . This can be seen at any of our offices or viewed on our website at: http://www.charitycommission.gov.uk/.

Income of charities

As at September 2006, the annual income of main registered charities in and was £40.004 billion. For a breakdown of registered main charities by income please click here: http://www.charitycommission.gov.uk/About_us/About_charities/Fact_figures_index.aspx

Our latest figures show that:

• the majority of registered charities have an income of £10,000 or less. They represent nearly two-thirds of registered charities but have less than 1% of the income recorded.
• around 8% of charities receive over 90% of the total annual income recorded.
• the largest 615 charities (0.37% of those on the register) attract nearly 48% of the total income.

Charity Law

The Charity Commission is charged with a number of responsibilities by virtue of the Charities Acts 1992, 1993, and 2006. To view these Acts please click below:

Charities Act 1992
http://www.opsi.gov.uk/acts/acts1992/Ukpga_19920041_en_1.htm

Charities Act 1993
http://www.opsi.gov.uk/acts/acts1993/Ukpga_19930010_en_1.htm

Charities Act 2006
http://www.opsi.gov.uk/acts/acts2006/20060050.htm

The powers and duties of many trustees were changed in several areas by the Trustee Act 2000, which came into force on 1 February 2001. The Act applies to many, but not all, charities. Generally speaking, it applies to charities set up as trusts or as unincorporated associations, but not charities set up as companies. The main features are:

• A new general power of investment
• A power to acquire land
• A power to employ agents and delegate particular types of function to them
• A power to employ agents to undertake a range of functions
• A power to appoint nominees and custodians
• A requirement to keep the actions of agents, nominees and custodians under review

To view the Act please click below: http://www.opsi.gov.uk/ACTS/acts2000/20000029.htm

Tax

Because they benefit society as a whole, charities benefit from a number of tax reliefs, including:

• Income tax and corporation tax reliefs
• Rating relief
• Capital Gains tax
• Value Added Tax
• Inheritance Tax; and
• Gift Aid - tax relief on Gift Aid donations

The Charity Commission does not administer or co-ordinate tax for charities. This falls under the jurisdiction of Her Majesty's Revenue and Customs.