Application for Charitable Status

Company Bureau can assist you with a Charitable Status application for your Irish company. Generally, the organisation would be incorporated as a Company Limited by Guarantee (CLG) prior to the application. CLG companies are suitable for non-profit companies because they don’t have shareholders, with no dividends to be paid all profits are reinvested into the company.

In accordance with section 3 (1) of the Charities Act 2009 a charity is defined as an organisation whose aims are exclusively charitable i.e. they come under one of the following definitions of charity:

  • The relief of poverty
  • The advancement of education
  • The advancement of religion
  • Other purposes of a charitable nature beneficial to the community

A purpose must be of public benefit or it will not be considered a charitable purpose.

Benefits of Charitable Status

For voluntary and community organisations there are many advantages in having charitable status if possible. It gives a standing and credibility to the organisation. Most funders of voluntary and community organisations require them to be recognised as charitable. In addition, the organisation is exempt from some taxes and can apply to the Valuation Office for exemption from rates on buildings.

Charitable Status Application in Ireland

If your company is exclusive to the prevention or relief of economic hardship, the advancement of education or the advancement of religion or any other purpose that is of benefit to the community. If the business operates within the Republic of Ireland then it can register with the Charities Regulator.

The Revenue’s minimum requirements for new CLG Companies applying for Charitable Status are as follows:

  • 3 non-related Directors
  • Secretary (this can be one of the Directors)
  • Minimum of 3 members (this can be all of the Directors also)
  • Certain Clauses to be added to the Constitution

Company Bureau can cover these clauses in the initial setup (with the restriction of the main objects clause being 55words).

Applying for Charitable Status Exemption

If your charity is registered with the Charities Regulatory Authority it does not automatically obtain a Charitable Tax Exemption from Revenue.

You must be registered for Tax with the Revenue. To apply for the exemption, you must complete a Form CHY1 and send it to the Charities Section in the Revenue with the following:

  • The latest financial accounts or details of your financial plans
  • A statement of your activities and future plans
  • A copy of your charity’s constitution.

The process has recently become more complex with the introduction of the new Charities Act, which includes the establishment of the Charities Regulatory Authority (CRA). A CLG company that intends to submit a charitable status application in Ireland is required to have certain clauses within the company’s constitution. If required, the Company Bureau experts can provide a one-hour consultation to help guide you through the charitable status application process.

For more information about applying for Charitable Status, please contact us