INFORMATION FOR CHARITIES
Starting a Charity
Below you can find useful information on what’s required in running your charity, and get access to general guidance to help you get it right.
What Defines a Charity?
Need help to set up your charity?
The Jersey Charity Commissioner can offer you general guidance on the application process but cannot help you to set up your charity, as you will have your own individual circumstances. However, you can read the Commissioner’s publications and help is available from other sources.
What does it mean to be a charity?
Any entity may apply to be a registered charity if it has a written constitution and is either a Jersey entity or carries out substantial activity in or from within Jersey. A charity in Jersey is an organisation which is entered on the Jersey Charity Register. An organisation can only become a charity if it meets the ‘charity test’, meaning that it must show it has only charitable purposes and benefits the public.
The Jersey Charity Commissioner decides whether to grant an organisation charitable status and to enter it on the Register. The Commissioner monitors the charity to check it complies with the law. The Commissioner seeks to encourage a flourishing charity sector that the public can trust. So, if your organisation becomes a charity, it will be granted a status that recognises its contribution to society but also carries lasting legal responsibilities.
All charities must submit an annual return and accounts if it produces them to the Commissioner every year and seek permission to make certain changes.
Meeting the charity test
Your organisation can only become a charity if it meets the charity test. To do this it must have only charitable purposes and it must provide public benefit in Jersey or elsewhere. Further detail in relation to the Charity Test is set out in Guidance Note 2 and in the Charities (Jersey) Law 2014, both of which can be found on this website under the section “Guidance and Regulation”.
Your organisation may fail the charity test if:
- its constitution allows its assets to be distributed or applied for non-charitable purposes unless those purposes are purely ancillary or incidental to its main purposes
- its constitution expressly permits a Minister, or expressly requires the same to be a Governor or a member of the States Assembly to direct or control its activities
- it is a political party or one of its purposes is to advance a political party or promote a candidate for election to any office, whether in Jersey or elsewhere
When the Commissioner looks at how your organisation provides public benefit, he or she will need to consider if:
- that benefit gives effect to its charitable purposes, and is provided to a reasonable degree
- there is any private benefit from your organisation’s activities
- there is any disbenefit to the public from its activities, even if there is benefit as well
- there may be any unduly restrictive conditions on accessing the benefit your organisation provides
For a full explanation of the Charity Test, please refer to the Commissioner’s Guidance Note 2, found on this website in the section “Guidance and Regulation”.
Before you register
Becoming a charity in Jersey
If you would like your organisation to become a charity, there are a number of important points you should consider before applying. These are set out below.
Remember – From the 1st January 2019, it is against the law to describe yourself as a Jersey Charity unless you are on the Jersey Charity Register.
UK and foreign charities
A foreign charity can apply to become a Jersey registered charity if it carries out substantial activity in or from Jersey and it has an address in Jersey. Essentially, it is applying on the same basis as a Jersey entity would apply.
A foreign charity, which is not registered in Jersey, can call itself a charity if it is classed as an “excepted foreign charity”. To be an “excepted foreign charity” it must be established under the laws of the UK, or in a jurisdiction recognised by the Chief Minister under the Charities Law, and entitled to call itself a charity under the laws applicable in that jurisdiction.
A foreign charity which is not an “excepted foreign charity” cannot call itself a charity whilst operating in Jersey unless it registers here.
A foreign charity, unless it registers in Jersey, will not receive the special tax exemptions provided for under Jersey tax law. It is possible that some reliefs will be available under tax arrangements with the UK or Guernsey, but you will need to take tax advice on this. It is envisaged that these arrangements will be maintained for the time being, although this will be reviewed, in due course, alongside the other charitable tax reliefs.
Is becoming a charity the right choice for your organisation?
You should weigh the benefits of becoming a charity against the duties and responsibilities you would be taking on. For instance:
Being a regulated organisation can assure you of public goodwill and trust. Some funders may only consider registered charities. However, many organisations choose alternatives that are better suited to their needs and some prefer to work with an existing charity.
Tax benefits – registered charities may qualify for certain charitable tax reliefs. However, for some charities, particularly smaller ones, the effect of tax relief may be minimal depending on the nature of their activities.
The people who control charities (charity governors) have legal responsibilities to act in certain ways and provide certain information to the Jersey Charity Commissioner and the public. Depending on the charity’s legal structure they may also be known as directors, office holders or committee members. You can find more information about the responsibilities of charity governors on the website at: Charity Governor’s Duties.
You must get the Commissioner’s permission before making certain changes, such as changing your purposes or winding up.
If you produce financial accounts, you will need to submit them with your application. All applicants will be required to provide basic financial information.
What Does it Mean to be a Charity?
Any entity may apply to be a registered charity if it has a written constitution and is either a Jersey entity or if not, carries out substantial activity in or from Jersey. A charity in Jersey is an organisation which is entered on the Jersey Charity Register. An organisation can only become a charity if it meets the ‘charity test’, meaning that it must show it has only charitable purposes and benefits the public in giving effect to those purposes.
The Jersey Charity Commissioner decides whether to grant an organisation charitable status and to enter it on the Register. The Commissioner monitors the charity to check it complies with the law. The Commissioner seeks to encourage a flourishing charity sector that the public can trust. So, if your organisation becomes a charity, it will be granted a status that recognises its contribution to society but also carries lasting legal responsibilities.
All charities must submit an annual return and accounts to the Jersey Charity Commissioner every year and seek permission to make certain changes. If you are thinking of becoming a charity, you should consider whether this is right for you. There are a lot of advantages to becoming a charity but it may not be the only, or the best, option for your organisation.
If you would like your organisation to become a charity there are several things you will have to do before applying to be registered:
- Decide what kind of organisation you would like to be, such as a company, a trust or an association
- Decide who will run your charity as the charity’s governors. If you are thinking of becoming a charity governor you should read Charity Governor’s Duties, available on this website
- Prepare a governing document, such as a constitution, which sets out your purposes, the rules of how your charity will be run, what it can do with its assets and how it can make changes to itself
- Decide what your charity’s name should be. The Commissioner cannot register a charity whose name is the same or too similar to an existing one, or is misleading or offensive
Please seek advice about these decisions if you need to. Joining an umbrella organisation will give you support to help develop your charity. You can choose a general umbrella group or one that represents your area of interest, for instance in health, religion or education.
How to Register your Charity
About this service
Use this service to apply to register:
- an existing entity in Jersey with the Jersey Charity Commissioner
- a new charity or one that will replace an existing entity in Jersey
Information needed
Please refer to Guidance Note 3a on this website. This Guidance Note covers the requirements under the Law for applications for registration in the General Section of the charity register and indicates the information provided by applicants that will be entered in the public part of the register. It is also relevant for applications for the Restricted Section of the register but in that case applicant entities should also refer to Guidance Note 3b which outlines certain additional requirements which must be satisfied for registration in that Section.
Before you start, make sure you have copies of:
- the organisation’s governing document (e.g. its constitution)
- a governor’s declaration form signed by all the organisation’s governors
- your latest accounts
Need help to set up your charity?
The Jersey Charity Commissioner can offer you general guidance on the application process but cannot help you to set up your charity, as you will have your own individual circumstances. However, you can read the Commissioner’s publications on this website and help is available from other sources.
