Charitable status is not a legal entity but is a badge of credibility which enhances the profile of your organisation.
Charities in Scotland comply with the Charities and Trustee Investment (Scotland) Act 2005 and are monitored by the Office of the Charity Regulator (OSCR).
It is an offence in Scotland to refer to your organisation as a “charity” if it is not registered as a charity with OSCR.
Benefits of becoming a charity are:
- As you are regulated, your organisation is more credible to funders, sponsors and your service users
- In certian circumstances you may be eligible for rates relief from the Local Authority
- You are able to register with HMRC for tax relief
- You are able to register for Gift Aid
Disadvantages of becoming a charity are:
- You become answerable to the charities regulator (OSCR)
- The Trustees have responsibilities as Charity Trustees (Guidance for Charity Trustees)