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If you have little knowledge about this topic, then setting up a non-profit organization may
seem to be complicated to you. But, in reality it is not so. In fact, if you can follow a basic
guideline you can easily expect to form a philanthropic organization.

It can undoubtedly be said that before going ahead with this charitable cause, it is always better
to come up with a plan. It is quite obvious that you know your intentions but others may not be
aware of your objectives. So, it is necessary to let them know. So, clearly draft your
organizational objectives and activities and highlight them to the people especially to the
charity commission, volunteers and potential investors. Thus, if you can convince them
properly, you can surely anticipate getting good support from them.

The planning strategy is next. Selecting an apt name for the organization indeed comes first.
The name must be unambiguous so that people may not confuse it with other social non-profit
organizations.

Questions may arise regarding which legal body will best suit your entity. Though you can
always set up a trust, it is better to go for the company limited by guarantee. This is because;
this type of a company can easily meet the legal necessities. In fact, these companies do not
have shareholders so there is no need of doing any kind of profit orientated operations.
Perhaps, this is the reason why most of the people prefer to choose this category.

Always keep in mind that you are establishing this institute for the benefit of the common
people. So, never adopt any unfair means that may hurt the sentiments of the people you are
serving.

If you are new in this field, then make sure that you have not forgotten to draft the clause into
company's memorandum of association. This clause specifically gives an overview of the
organizational objects and the people they provide services. Apart from this, you also need to
include two other things in the association's memorandum. These are dissolution clause and
the non-profit clause.

One thing needs to be kept in mind that in order to get registered by the Charity Commission,
you must have a yearly income of £5,000 British Pounds or $7,735 USD. Once you are
registered, the company limited by guarantee is provided with a company registration number
along with a charity number. However, make yourself clear about the fact that strict laws are
placed on charities in order to prevent abuse. But if you are working for genuine cause then you
will enjoy several benefits, such as:

Relaxation in income tax, Relaxation in capital gains tax, Reduction in business rates, Special
VAT treatments, financial aid from local Government

So, if you have a noble cause behind your establishment of a charitable organization, go ahead
with your plan. Not only government but good people will come forward to help you fulfill your
mission.