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Technical changes to Charity Law | |
The new Charities Act became law in February 2022, introducing a wide range of technical changes to charity law. The changes are being implemented over an 18-month period. In this article we will update you on some of the key changes which have been introduced so far as well as what is still to come, focussing on those which may be of particular importance to you and your charity. | | | |
The first tranche of changes came into force on 31 October 2022, including: - Remuneration of charity trustees for providing goods to the charity - The new provisions mean that your charity has a standalone power to pay a trustee (or a connected person) for providing goods to the charity
- Trust corporations - The new provisions mean that incorporated charities will automatically be treated as trust corporations, in their capacity as trustees of a charitable trust, whereas previously Charity Commission or Ministry of Justice involvement was needed in order to obtain this legal status
- Failed appeals - If your charity has made a fundraising appeal which has raised too much or not enough funding, the new powers make it more straightforward to apply the funds to a new purpose
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The second tranche came into force on 14 June 2023. These include: - Permanent endowment - The definition of permanent endowment has been reformulated, and there are new powers which will allow your charity (in certain circumstances) to spend (or borrow from) some of its permanent endowment without first obtaining Charity Commission consent
- Charity land - The process charities have to go through to dispose of their land has been modified, and importantly, the advice a charity must obtain beforehand has been simplified
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The final changes, which are expected in Autumn 2023, include: - Charity constitutions - The rules which apply to incorporated and unincorporated charities when it comes to amending their governing documents will be revised
- Register of mergers - New provisions will ensure that a merged charity that is placed on the register is treated as continuing to exist for legacy purposes, which is helpful and may (in some circumstances) remove the need to keep a ‘shell’ charity
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James Cowper Kreston is a leading firm of accountants and business advisers, with offices across the South of England. We deliver focused, innovative advice to a diverse range of businesses and individuals helping our clients to maximise their potential.
If you would like to discuss any of the topics raised within this newsletter please email us on info@jamescowperkreston.co.uk or call us on 01635 35255.
Kind regards Darren O'Connor | Partner T: +44 (0)7990 525362 | E: DOconnor@jamescowper.co.uk | |
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The information in this newsletter must not be relied on as giving sufficient advice in any specific case. | | | |
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