Set Up a Homelessness Charity in the UK: 8 Steps (2026 Guide)

Starting a homelessness charity is one of the most tangible ways a community group, trustee, or founder can respond to one of the UK's most pressing social challenges. A homeless shelter provides a safe space for people in crisis, supports their transition toward stable housing, and connects them with the wider services they need to rebuild their lives.

This guide walks you through 8 practical steps to set up a homelessness charity in the UK. It covers charity registration with the Charity Commission, Gift Aid, planning permission, governance, UK funders, and how to set up your fundraising from day one.

You do not have to be a registered charity from day one. Many UK homelessness services start as a community group, Community Interest Company (CIC), or unincorporated association and register with the Charity Commission once their annual income is expected to exceed £5,000 (Charity Commission for England and Wales).

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In this article:

• 8 steps to setting up a homelessness charity in the UK

• Why start a homelessness charity?

• How to set up a homelessness charity in the UK

• Frequently asked questions

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8 steps to setting up a homelessness charity in the UK

Why start a homelessness charity?

Homelessness remains a significant and growing challenge across the UK. In England, local authorities owe a statutory homelessness duty to hundreds of thousands of households each year, according to the government's statutory homelessness statistics published by the Ministry of Housing, Communities and Local Government (MHCLG statutory homelessness statistics). The annual rough-sleeping snapshot for England records thousands of people sleeping rough on a single night, and the true number of people in precarious or hidden homelessness is substantially higher (gov.uk rough sleeping snapshot).

Scotland and Wales each collect and publish their own homelessness statistics separately, through the Scottish Government and StatsWales respectively, reflecting the distinct statutory frameworks that apply in each nation.

A homelessness charity offers those without a safe place to stay the immediate support they need: somewhere warm, meals, and access to services. More importantly, it becomes a bridge toward permanent housing, helping residents regain stability and independence. By setting one up, you play a direct role in turning crisis into recovery.

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How to set up a homelessness charity in the UK

1. Decide on the type of homeless shelter

Homeless shelters often focus on specific groups to provide targeted support and address the unique challenges faced by different populations. This specialised approach allows for more effective and tailored services for groups such as:

• Families: these shelters cater to parents and children, providing a safe environment with family-oriented services. These may include on-site childcare, tutoring, after-school programmes, and prenatal care, addressing the unique challenges faced by homeless families.

• Veterans: focused on those who have served in the armed forces, these shelters offer tailored support drawing on the wider UK veterans' support ecosystem, including organisations such as the Royal British Legion, SSAFA, Help for Heroes, and the Veterans' Gateway referral service. Services often include job training, mental health support, and help with the transition to civilian life.

• Young people: aimed at young people without stable housing, these shelters create safe spaces with an emphasis on education and career development. Programmes typically focus on life skills, continuing education, and work-readiness to help young people build independent futures.

• Women and children: these shelters specialise in supporting women, often with children, who are experiencing homelessness. Services may include childcare, domestic-abuse support, job training, and health services, providing a comprehensive approach to help women regain stability.

Other shelters may focus on people with specific challenges, such as mental illness, people leaving prison, or those in substance-misuse recovery. These facilities offer targeted services such as mental-health treatment, addiction-recovery programmes, and reintegration support.

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2. Find the right location

When searching for a location for your homeless shelter, start by asking local communities and community groups whether they can donate or lease a building. This can significantly reduce your financial burden.

Alternatively, organisations find locations by:

• Contacting the owner of an empty or disused building

• Reaching out to religious institutions to discuss whether they can provide space

• Using social media and local networks to gain leads on available properties

A major part of finding a location is cost: the property should sit within your budget for purchase or lease. Choose a location that is close to public transport and essential services such as hospitals, schools, and employment centres (including your local Jobcentre Plus).

Planning permission and licensing: under the Town and Country Planning (Use Classes) Order 1987 (as amended), most residential shelters and hostels fall under Class C2 ('residential institutions') or may be treated as sui generis depending on their structure. You will likely need to apply for planning permission or a change of use from your local planning authority. If the property houses multiple unrelated residents, it may also require a house in multiple occupation (HMO) licence under the Housing Act 2004. Contact your local planning authority early to confirm what permissions are needed before committing to a site (gov.uk planning permission guidance).

Create a good rapport with the local community. Schedule meetings to explain your mission and address any concerns. Good community relationships will help you raise more funds and support for the shelter.

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3. Write a mission statement

Your mission statement defines your purpose and outlines what you aim to achieve with your homelessness charity.

A good mission statement includes the services you offer. These might be generic transition assistance for housing or foodbank provision, or niche-specific services tailored to your target group.

Here is an example of a mission statement:

'Our mission is to offer a safe, caring place for homeless families. We provide shelter, service delivery, support, and resources to help them find stability and independence. We focus on each resident's needs, creating a community of respect and hope. Through housing support, healthcare, education, and employment assistance, we empower families to rebuild their lives. Together, we can create brighter futures for those in need.'

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4. Build community relations with local government agencies

Establish a coalition with local government agencies and seek advice from other organisations offering similar services. This will help you avoid costly mistakes and grow your shelter's impact over time.

The UK homelessness sector has a well-established stakeholder map worth engaging from the start:

• Local authority housing options and homelessness teams: under the Homelessness Reduction Act 2017, local authorities have a statutory duty to prevent and relieve homelessness. Getting on their radar early, whether as a commissioned provider, a partnership organisation, or a known local service, is essential. Most authorities also convene a Homelessness Forum or Homelessness Partnership Board that you can ask to join.

• Homeless Link: the national membership charity for frontline homelessness services in England. They publish codes of practice, quality standards, and a funding directory, and provide invaluable support for new organisations entering the sector.

• National sector bodies: Crisis and Shelter cover England and Wales; Simon Community serves Scotland and Northern Ireland; Wallich operates in Wales. All offer resources for organisations setting up new homelessness services.

• Foodbank networks: collaborate with your local Trussell Trust foodbank or Independent Food Aid Network (IFAN) member to arrange food donations for shelter residents. 'Foodbank' is one word in UK usage.

• Faith networks and civic organisations: reach out to local faith communities, civic organisations, and educational institutions to organise fundraising events and source in-kind donations of furniture, kitchen supplies, or hygiene products.

• Other charities: reach out to charities with similar goals to explore partnerships and sponsorships. Requests for in-kind support are often welcomed by local businesses and community members.

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5. Develop programmes and services for your homeless shelter

Depending on the type of shelter you choose, create programmes and services that provide a compassionate, person-centred approach. Here are the key areas to consider:

• Basic needs services: ensure immediate comfort and dignity by providing essential health and human services. This includes nutritious meals, clean clothing, access to showers and hygiene facilities, and safe emergency shelter. These fundamentals create a foundation for stability and recovery.

• Case management: offer personalised support through dedicated case managers who can assess individual needs, coordinate access to healthcare, assist with job-training opportunities, and guide residents through the process of securing permanent housing. This tailored approach helps address each person's unique challenges.

• Healthcare services: partner with local NHS services, Integrated Care Boards (ICBs), and inclusion-health GP practices to offer comprehensive care. This can include regular medical check-ups, dental services, mental-health counselling, and substance-misuse support provided via local-authority commissioned services and Office for Health Inequalities and Disparities (OHID) guidance. You may also wish to explore a partnership with Pathway, the UK inclusion-health charity that works with hospitals and NHS trusts to support patients experiencing homelessness.

• Employment and education programmes: empower residents with skills for self-sufficiency. Provide job-training workshops, CV-writing support, and connections to local employers. Offer functional-skills courses (English and maths), Access to HE provision, or adult-learning classes at the local further education college. These programmes build confidence and open pathways out of homelessness.

• Supportive services: address underlying issues that contribute to homelessness. Offer substance-misuse recovery support, legal aid for navigating the justice system, and support for family reunification where appropriate. These services tackle root causes and promote long-term stability.

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6. Get your governance and registrations in order

Homeless shelters in the UK typically operate as registered charities, which brings significant financial benefits: Gift Aid on donations, mandatory 80% business-rates relief on premises used for charitable purposes, and eligibility for trust and foundation funding restricted to registered charities. Here is a step-by-step checklist for getting your legal house in order.

1. Choose a legal structure

The most common and recommended structure for new UK homelessness charities is the Charitable Incorporated Organisation (CIO). It offers limited liability for trustees, requires only a single registration with the Charity Commission, and has no Companies House filing requirements. Alternatives include:

• Charitable company limited by guarantee: requires registration with both Companies House and the Charity Commission; suits charities expecting complex trading or contracting activity.

• Unincorporated association or charitable trust: simpler to set up but offers no limited liability to trustees, which can be a concern when running residential premises.

• Community Interest Company (CIC): regulated by the CIC Regulator; useful if commercial trading is intended, but a CIC is not a charity and does not benefit from charitable-status tax reliefs or Gift Aid.

2. Draft your governing document

A CIO requires a constitution. The Charity Commission publishes model CIO constitutions (the 'foundation' and 'association' models) which you can adapt for your homelessness charity's purposes.

3. Recruit at least three unrelated trustees

Under the Charities Act 2011, charities are governed by trustees. You need at least three unrelated trustees. The Charity Commission's CC3 guidance ('The essential trustee') sets out trustee duties and is essential reading before your first trustee meeting.

4. Register with your charity regulator

• England and Wales: register with the Charity Commission for England and Wales once your annual income is expected to exceed £5,000. CIOs must register regardless of income.

• Scotland: register with OSCR (Office of the Scottish Charity Regulator) regardless of income size, as required under the Charities and Trustee Investment (Scotland) Act 2005.

• Northern Ireland: register with CCNI (Charity Commission for Northern Ireland).

5. Apply to HMRC for charity tax status

This is a separate process from charity registration. Apply to HMRC for recognition as a charity for tax purposes. Once approved, you receive a Charities Reference Number, which is required to reclaim Gift Aid on donations. Keep Gift Aid declarations for at least six years after the last donation they cover.

6. Other essential paperwork

• DBS checks for all staff and volunteers working with vulnerable adults or children (enhanced DBS; mandatory)

• A written safeguarding policy, reviewed annually

• Public liability insurance and employers' liability insurance (mandatory if you have any employees)

• Risk assessments for the premises and activities

• UK GDPR compliance and registration with the ICO for processing personal data (you will be processing residents' and donors' data)

• Food-hygiene registration with your local authority if you serve meals on site

• HMO licence and planning consent where required (see Step 2)

• A bank account in the charity's name

7. Register with the Fundraising Regulator

Once your charity is fundraising publicly, register with the Fundraising Regulator and commit to the Code of Fundraising Practice (current version effective 1 November 2025). Displaying the Fundraising Regulator badge builds trust with donors and is expected by major funders.

For further reading on VAT reliefs and business-rates reductions available to registered charities, the Charity Tax Group is an authoritative independent reference.

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7. Secure funding and resources

Most homelessness charities operate on tight budgets, often facing shortages in essential equipment and supplies. The chosen facility may need significant upgrades, including bedding, linens, shower facilities, kitchen equipment, and food supplies. Securing specific funding for these necessities is crucial to provide adequate care for shelter residents.

Here are the main fundraising channels to consider:

• Grant writing: apply for funding from the National Lottery Community Fund (the UK's largest community funder), Homeless Link's funding directory, Comic Relief, and local-authority Rough Sleeping Initiative (RSI) funding streams. See Step 8 for a full breakdown of UK government grant sources.

• Community fundraising events: organise sleep-outs (widely used by Depaul UK, Centrepoint, and Emmaus to raise homelessness awareness), sponsored walks, quiz nights, carol services, or foodbank collection drives to raise funds and build community support.

• Corporate partnerships: develop Charity of the Year partnerships with local businesses, and explore workplace Payroll Giving, an HMRC scheme through which employees donate directly from their pre-tax salary at no extra cost to the charity.

• Individual giving campaigns: build a donor base through direct post, email newsletters, and social media outreach. Lead all individual-giving communications with Gift Aid: your charity reclaims 25p for every £1 a UK taxpayer donates, at no extra cost to the donor, so a £100 gift becomes £125 in the charity's hands (HMRC Gift Aid guidance). For regular giving, Direct Debit is the preferred UK mechanism and accounts for around 31% of all UK charity donations. If you collect cash or contactless donations of £30 or less at events, you can claim a 25% top-up under the Gift Aid Small Donations Scheme (GASDS) without needing individual declarations.

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8. Apply for government grants

Government grants are a crucial and substantial funding source for homelessness charities in the UK. Here is a breakdown of the key funding streams.

National Lottery Community Fund

The National Lottery Community Fund is the largest community funder in the UK. Its Reaching Communities and Partnerships programmes fund organisations working to address homelessness and housing instability. This is the best starting point when exploring grant opportunities for a new service.

MHCLG homelessness funding

The Ministry of Housing, Communities and Local Government (MHCLG) funds homelessness services through programmes including the Rough Sleeping Initiative (RSI) and the Rough Sleeping Accommodation Programme. Programme names and funding cycles change with departmental restructures, so check the current gov.uk homelessness policy pages for live programme names before applying.

Local authority commissioning

Much of the specialist homelessness accommodation in the UK is funded through local-authority commissioning rather than open grants. Local authorities publish tender opportunities for homelessness-support contracts on Contracts Finder. Getting your charity onto a local authority's approved-supplier list early can be transformative for long-term income stability.

Devolved nations

• Scotland: the Scottish Government funds homelessness services through the Ending Homelessness Together action plan and associated grant programmes.

• Wales: the Welsh Government provides homelessness-related funding through the Housing Support Grant.

• Northern Ireland: the Department for Communities funds homelessness support through the Supporting People programme.

Trusts and foundations

Beyond statutory funding, Homeless Link's funding directory, the Association of Charitable Foundations (ACF), and the Turn2Us funding search are useful starting points for identifying trust and foundation grants relevant to homelessness work.

When applying for any grant, read eligibility requirements carefully and align your charity's mission with the grant's objectives. Craft a compelling narrative that demonstrates your shelter's impact and how the funds will be used effectively. Include detailed budgets, timelines, and measurable outcomes in your proposal. Government grants in particular often require extensive reporting and compliance monitoring, so be prepared to track expenditure meticulously and provide regular updates on your shelter's performance.

Consider seeking mentorship from Homeless Link or your local CVS (Council for Voluntary Service) to strengthen applications and avoid common pitfalls. Many shelters apply for multiple grants annually to diversify their funding and maintain stable operations.

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Frequently asked questions

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