Charity

An organisation which aims to tackle a social or environmental challenge (its charitable purpose) and create public benefit through its activities. A charity cannot make a profit and all funds must be used for its charitable purpose.

Types of legal structure

  • Company Ltd by Guarantee (CLG) with charitable status
  • Scottish Charitable Incorporated Organisation (SCIO)
  • Charitable trust

This list is not exhaustive but it shows the most common structures.

This business type tends to

Prioritise positive social or environmental impact
Prioritise positive social or environmental impact
Generate income by selling a product or service
Generate income by selling a product or service
Generate income through grants or donations
Generate income through grants or donations
Restrict its profits and assets for social or environmental benefit
Restrict its profits and assets for social or environmental benefit
Sell shares to private investors to raise funds
Sell shares to private investors to raise funds
Be led by a sole founder or small group of co-founders
Be led by a sole founder or small group of co-founders
Be accountable to a community
Be accountable to a community
Be owned and run by a specific community
Be owned and run by a specific community
Legally embed purpose
Legally embed purpose

Example organisations

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Visit SCVO for resources and guidance for setting up a charity

The Scottish Council for Voluntary Organisations (SCVO) is the national membership organisation for the voluntary sector. Their mission is to support, promote and develop a confident, sustainable voluntary sector in Scotland.

Chat to Cooperative Development Scotland about starting a co-op

Cooperative Development Scotland (CDS) can offer one-to-one sessions with a specialist advisor to help you choose the best business model for your needs and set it up.

Visit Business Gateway for help with setting up your business

Business Gateway is delivered by local authorities, providing advice and support to Scottish businesses. They offer a range of professional resources, support and tools to help you learn new skills, create new opportunities and develop sustainable strategies for growth.

Visit Business Gateway

Chat with Firstport

Leave your details below and a member of our team will get back to you. We'll connect you to sources of advice, investment and support currently available for Purpose Driven Businesses.

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Chat with Firstport

Leave your details below and a member of our team will get back to you. We offer free advice on setting up a business, as well as seed funding and investment to scale.

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More ways to create impact through your business

There are many ways you can deliver social and environmental impact which don't revolve around your business type. From being a living wage employer to becoming a B Corp, discover more ways you can make a difference.