The much-anticipated Charities Bill received Royal Assent in February, bringing it into law as the Charities Act 2022. Whilst the implementation of the Act will not have a massive impact on most charities day-to-day activities, the changes will simplify the regulation of charities therefore reducing administration saving charities both time and money.
What are some of the key changes?
- A more straightforward process to amend the charity's governing documents.
The Charities Act seeks to make process of amending charities governing documents much quicker and easier.
- Relaxed requirements on the disposal of property.
Instead of having to engage a RICS-qualified surveyor to produce a detailed report on a property to be sold, trustees cannot take advice from a wider range of surveyors. If a charity has a suitably qualified trustee on board, then they do not need to seek external advice at all.
- Allowing trustees to spend small donations from failed appeals on similar charitable purposes.
The Act will make it easier for charities to use the proceeds from failed fundraising appeals for other similar charitable purposes, which previously represented a significant administrative burden for charities.
- The ability to pay trustees for goods provided to the charity.
Previously, trustees could not receive remuneration for the supply of goods to their charity without Commission consent. Under the 2022 Act, where it is in the best interests of the charity to do so (for example, if the trustee can provide goods cheaper), charities will be able to pay their trustees to provide the goods they need to further their purposes.
With the act being implemented over the coming year, we expect regular updates from the Charity Commission. All charities and charity trustees should be aware the changes are coming and consider the impact of these.
At Clapham & Collinge, we have a multi discipline team dedicated to providing legal services to our clients from the charity sector. For more information on the legal services we offer to charities, visit our dedicated charity services webpage, call 01603 693500 or email us using the 'Make an enquiry' form.
*This article is provided for general information purposes only and does not constitute legal advice or other professional advice.