How to Set Up a Charity in Ireland: Legal Essentials & Expert Insights

Okay, so I suppose we'll just get into some of our frequently asked questions by individuals who are thinking about setting up charity but don't know where to start.

So, First, I think there's often a lot of confusion around the proper definition of a charity and organizations, they don't really know if they're a charity or some other form of nonprofit organization.

Do you have any views in relation to how to kind of properly define yourself as a charity or otherwise?

Yeah, this is a really great question and it's one that we do see a lot in practice because, you know, we hear the term, I suppose, nonprofit a lot, but the reality is there's no kind of single definition of nonprofit.

It covers, I suppose, a lot of different organizations.

It does cover charities, but it can also cover things like amateur sports clubs, social enterprises, local community groups.

So it's essentially kind of any sort of organization that operates, you know, with some, I suppose, social purpose, but you know, on a not-for-profit basis.

When we talk about charities, we are referring very specifically to an organisation that meets certain criteria that are set out in the Charities Act 2009.

And it's only organisations who meet those criteria who are eligible to go and apply to the Charities Regulation for registration.

Okay, and what kind of criteria are we looking at in the Act?

So I've extracted this from section two.

So a charitable organization means the trustees of a charitable trust.

We're going to come to the structures of the various or how you can structure your charity.

And then a body corporation or an unincorporated body of persons.

One that promotes a charitable purpose only.

It's the only that's very important there.

two that under its constitution is required to apply all of its property real and personal in furtherance of that purpose being the charitable purpose except for monies expended one in the operation and maintenance of the body itself including monies paid in remuneration superannuation of members of the staff of the body and in the case of a religious organization or community on accommodation and care of members of the organization or community And none of the property of which is payable to the members of the body other than in accordance with Part 6A, which talks about actually applying the money for the charitable purpose.

So we talk about the not-for-profit sector.

And as you were saying, this can include sports clubs and other organisations where the money is expended specifically for the members to benefit from that.

we're going to come along to what are charitable purposes and specifically sports clubs.

And we all encounter them every day.

They're not charitable.

They can't register to be a charitable organisation.

And as Clare has said, that's the distinction.

You can operate not for profit.