How to successfully apply to become a charity in Scotland
To be a charity in Scotland, an organisation must meet the charity test. The charity test is the legal set of requirements and is in two main parts:
- An organisation must have only charitable purposes; and
- It must provide public benefit in achieving those purposes.
In order for us to understand if your organisation meets the charity test, you must submit an application for charitable status to OSCR.
To avoid your application being delayed or withdrawn, it’s really important to complete it as fully as you can.
We want to help you to avoid some of the common mistakes applicants make, and ensure your application can be processed as quickly as possible.
Do you need to be a charity?
The first question to ask before filling out an application for charitable status is: do you need to be a charity? It’s not uncommon for people to think they need to set up a charity to do certain things, when that’s not always the case.
There may be an existing charity you can get involved with, or your organisation may be better set up as a different type of non-profit, such as a social enterprise or community interest company.
Take a look at our Do you need to be a charity? guidance to find out more.
What are the common issues when applying?
We have reviewed some of the applications for charitable status OSCR has received in recent weeks and have identified several common issues that we think it would be helpful for us to highlight to potential applicants and those who work with applicant bodies. This relates to the level of detail provided about the activities that you intend to carry out.
Recently we published a short article outlining 7 ways to speed up your application for charitable status, which explains that the more information you can include about the activities your organisation intends to carry out, the better. While applications will usually outline what the intended activities will be, what is often missing is a detailed explanation of how those activities will be carried out. This information is critical to us being able to assess an application because it helps us to understand:
- the thought and planning that has taken place about the proposed charity.
- how realistic the activities really are; whether they can further the charitable purpose(s) you select.
- whether there are limits or constraints on the activities that are outwith the control of the proposed charity trustees, for example having appropriate licenses or permissions in place if required.
What information do I need to include?
If you are thinking about applying to be a charity, we need you to be clear about how those activities will be carried out and provide detailed information about this from the outset. Here are some questions that may help you to think this through and provide the necessary information to us:
- What activities will you carry out to achieve your purpose(s)?
- How will you identify the people or cause that the charity is set up to help (the beneficiaries)?
- Where will the activities take place? Do you intend to rent or purchase premises?
- Who will run the activities? Will you employ staff or rely on volunteers?
- How will you finance the activities? Do you intend to apply for funding to help you set the charity up or will you generate income in another way? Where will the money come from to keep the activities going longer term?
What might cause my application to be withdrawn?
If, after reviewing the information you submit, we consider that one or more of the following apply to your application we may decide that the application for charitable status is incomplete and we cannot assess it any further:
- You have not provided a governing document.
- The governing document you have submitted is not suitable for the legal form you have indicated you will have. For example you submit a constitution for an unincorporated association but you fill in an application to become a SCIO.
- The purposes set out in your governing document are not exclusively charitable.
- You have not provided sufficient information about your proposed activities.
- You have not fully answered all of the questions in the application form.
If we are unable to assess your application it will be withdrawn by us and you will have to reapply. We will email you advising of this and refer you to your local Third Sector Interface (TSI) office. You will find details of all the TSIs in each local authority area in Scotland by visiting the TSI Directory webpage.
For more information about how to successfully apply to become a charity in Scotland, read our guidance on Becoming a Charity.