Do Nonprofit Organisations Need to Be Registered? 

If you’ve got a passion to help others and build better communities, then the thought of starting a nonprofit organisation must have crossed your mind. While a nonprofit operates differently from a business as it’s not interested in making a profit, there are still rules and registration processes similar to a for-profit that should be followed to comply with government regulations. 

What Is a Nonprofit Organisation?

An organisation that functions to provide services without the primary goal of making money, a nonprofit can be categorised into social and community organisations. Social organisations aim to improve social causes such as poverty, hunger and homelessness, while community nonprofits focus on overall community betterment such as beach clean-ups and recycling drives. 

So Do Nonprofit Organisations Need to Be Registered? 

Keep reading to find out!

Simply put, a nonprofit doesn’t need to be registered. Regardless of whether it’s a social or community nonprofit, it is not essential to register as long as the organisation operates to further its cause and mission of helping people and communities.

According to recent statistics, nearly 500,000  voluntary organisations exist in the United Kingdom with only 200,000 of them registered. 

When Should a Nonprofit Organisation Be Registered?

If your nonprofit or charity has a gross annual income of over £5,000, it should register with the charity commission in England or Wales. 

How Much Does Registration Cost?

Registration is generally free unless you’re planning on establishing an incorporated charity. In some cases, there may be a small fee of about £13.

How Do I Register a Nonprofit Organisation?

In order to begin the registration process, an online form must be completed. Ensure that you provide accurate information while attaching all the requested documents. Some ‌documents and information required will be name, recent accounts, trustee names, proof of income, charitable purpose, etc. The entire process usually takes up to 30 days.

Why Is It Important to Register a Nonprofit Organisation?

A registered nonprofit organisation opens up an array of opportunities for a charity to succeed and grow. Since it’s publicly recognised as an entity that operates for the betterment of society, your nonprofit can attract funding through the perks and benefits available to registered charities such as:

• The ability to effortlessly find donors online to create a valuable nonprofit donor database
• Easily apply for grants and funding given by large corporations and governments
• Attracting individuals looking for volunteer opportunity
• Attracting sponsors looking to find a charity to support
• Building credibility and trust within the local community 
• Enjoying tax exemptions and relief
• Hosting effective fundraising events such as raffle draws, marathons and charity auction