Do I Need an Accountant to Help Register a Charity?

Introduction

Starting a charity is an inspiring step for anyone who wants to make a lasting difference. Whether you plan to support your local community, protect the environment, or raise funds for medical research, registering a charity ensures your organisation is recognised, trusted, and eligible for tax benefits.

One of the most common questions new founders ask is whether they need an accountant to help with registration. While it is not legally required to hire one, many charities find professional support invaluable during the process. This article explains what accountants can do when registering a charity, when you might need their help, and how to decide what is right for your organisation.

Can I Register a Charity Myself?

Yes, you can register a charity yourself through the Charity Commission website. The process involves completing an online application and providing details about your organisation’s structure, purpose, trustees, and finances.

To qualify for registration, your organisation must:

• Have charitable purposes only

• Provide a clear public benefit

• Have an annual income of more than £5,000 (unless registering as a Charitable Incorporated Organisation, known as a CIO, which must register regardless of income)

• Have at least three independent trustees

• Be governed by a suitable legal document, such as a constitution or trust deed

If you are confident with paperwork and understand how charities operate, you may be able to complete the registration without professional assistance. However, if your charity has multiple founders, complex funding plans, or expects to grow quickly, involving an accountant can save time and prevent costly mistakes.

How an Accountant Can Help with Charity Registration

Accountants who specialise in the not-for-profit sector can support you in several key areas during registration and setup.

1. Choosing the right structure
There are several ways to set up a charity, including as a charitable trust, unincorporated association, charitable company, or CIO. Each structure has different rules for governance, reporting, and liability. An accountant can help you choose the one that best suits your charity’s size, funding model, and long-term goals.

2. Preparing financial plans
The Charity Commission will ask for details about your charity’s expected income and how funds will be managed. An accountant can help you produce financial forecasts, create budgets, and demonstrate that your plans are sustainable and transparent.

3. Drafting and reviewing financial sections of your governing document
Your governing document is a legal requirement and must include clauses about how funds are handled, how trustees manage money, and what happens if the charity closes. An accountant ensures these financial clauses meet legal standards and reflect best practice.

4. Ensuring compliance with HMRC
To qualify for tax exemptions and claim Gift Aid, your charity must also register with HMRC. An accountant can handle this registration and ensure your systems are compliant with HMRC rules from the start.

5. Setting up bookkeeping systems
Even before registration, your charity should have a method for recording donations and expenses. Accountants can recommend accounting software or processes that meet Charity Commission standards and prepare for future audits or independent examinations.

6. Reducing errors and delays
Many registration applications are delayed or rejected because of incomplete financial information or unclear objectives. Accountants familiar with the process know what the Charity Commission looks for and can help you avoid these pitfalls.

When You Might Not Need an Accountant

If your charity is very small, run entirely by volunteers, and has simple finances, you might manage without professional help. For example, a local community group raising small amounts for neighbourhood activities may not need detailed financial projections or complex structures.

In these cases, you can:

• Use the Charity Commission’s online guidance and templates

• Follow examples of similar small charities

• Keep clear, basic records of income and spending

• Appoint a trustee with financial knowledge to oversee funds

As your charity grows or begins to handle larger donations, employing staff, or applying for grants, professional support becomes more important.

The Benefits of Using an Accountant Early

Even if not essential, involving an accountant at the beginning can bring lasting benefits.

• Confidence in compliance: You will know that your accounts, forecasts, and documentation meet the Charity Commission’s standards.

• Stronger credibility: Funders and donors are more likely to trust charities with clear, well-prepared financial systems.

• Time savings: Registration can be complex and time-consuming. Having an expert handle the process allows you to focus on launching your charitable activities.

• Long-term planning: Accountants can set up systems that make future reporting, budgeting, and audits much easier.

Example Scenario

Imagine Daniel and Sarah, who want to create a charity supporting families with disabled children. They plan to raise funds through grants, events, and donations. Unsure of the best structure, they hire an accountant experienced in charities.

The accountant helps them decide on a CIO structure for liability protection, drafts the financial parts of their constitution, and prepares a three-year budget to submit with the Charity Commission application. The process goes smoothly, and their charity is approved within weeks. Without this support, they might have faced delays or had to resubmit missing information.

Common Mistakes When Registering Without Professional Help

• Submitting an unclear or incomplete governing document

• Choosing the wrong legal structure for the organisation

• Failing to explain how funds will be used to achieve public benefit

• Lacking financial forecasts or policies for managing donations

• Forgetting to register with HMRC after approval by the Charity Commission

These errors can delay approval or cause future compliance issues.

How to Choose the Right Accountant

If you decide to hire an accountant, look for one who:

• Has experience working with charities or not-for-profit organisations

• Is qualified through a recognised body such as ACCA, ICAEW, or AAT

• Can offer ongoing support beyond registration, such as bookkeeping and annual reporting

• Communicates clearly and understands your mission

Ask for testimonials or case studies from other charities they have helped. The best accountants act as long-term partners, not just short-term advisers.

Conclusion

You do not legally need an accountant to register a charity, but professional help can make the process far easier and ensure your application is accurate and compliant. An accountant can guide you on the right structure, help with budgets and forecasts, and set up financial systems that build trust with donors and regulators.

For small, simple charities, it may be possible to handle registration independently using the Charity Commission’s guidance. However, for growing or ambitious charities, involving an accountant early can save time, prevent mistakes, and lay the foundation for long-term success.