So many great charities start with a person. A vision. A conviction that something must be done. And often, that person throws themselves into the work without thinking about governance, legal structures, or what the organisation will look like in five yearsâlet alone ten.
Iâve seen this story play out again and again: a founder launches a charity, builds a loyal team, attracts funding, and drives real impact. But because the structure was rushedâor built entirely around themâit starts to creak as the organisation grows. Decisions bottleneck. Trustees arenât truly independent. Funders raise red flags. Sometimes, the founder burns out or leavesâand the whole thing collapses. It doesnât have to be this way.
What founders often get wrong (and how to avoid it):
1. Choosing the wrong legal structure
Most founders default to a Charitable Incorporated Organisation (CIO) or Company Limited by Guarantee (CLG) because theyâre familiar and simple. But what if your model depends on trading income, consultancy, or community ownership? A CIC or dual structure (charity + trading subsidiary) might serve you better. The wrong choice can limit income options or complicate governance down the line.
Tip: Donât just copy what another charity did. Think long-term about your model and mission.
2. Filling the board with loyal friends
Itâs natural to turn to people you trust when starting out. But if your board is made up of friends, family, or former colleagues, you risk creating a culture of deferenceânot challenge. Independent governance doesnât mean losing control. It means gaining legitimacy, rigour, and the ability to grow well.
Tip: From day one, include people who will ask you hard questionsâand back you when youâre right.
3. Holding onto too much control
Founders often stay as trustees and CEOs. They sign everything. Make all the decisions. Nothing moves without them. It feels efficientâuntil it isnât. It also blurs lines. Who holds the CEO to account if theyâre also the board chair? What happens when the founder wants to step back?
Tip: If youâre the founder-CEO, donât sit on the board. Build in governance from the start, and plan your eventual exit or succession.
Founders bring energy, vision, and sacrifice. But they also need mentoring, governance advice, and space to learn. Many founders in the Muslim and international development space also face additional layers: cultural expectations, funding bias, or limited access to legal support.
If youâre a founder reading thisâask yourself: will your charity survive you? Can it scale without you? Have you built for sustainability or personality?
Founders & Charity Structures: Build for Mission, Not Just Momentum.
Date: 2025-10-05 | Author: Admin
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