On Wednesday 14th June 2023, the latest set of changes being introduced by the Charities Act 2022 come into force.

The Charity Commission has updated its existing guidance to reflect these changes, which includes flexibility for trustees when seeking to dispose of charity land and new powers around the use of permanent endowment.

Changes now in place include simplified legal requirements that charities must comply with before selling, transferring or leasing land, and new statutory powers to enable:

• charities to spend, in certain circumstances, a proportion or all of their permanent endowment fund where the market value of the fund is (£25,000 or less) without Commission authorisation.
• charities to borrow, in certain circumstances, up to 25% of the value of their permanent endowment fund without Commission authorisation.
• charities that have opted into a total return approach to investment to use permanent endowment to make social investments with a negative or uncertain financial return, provided any losses are offset by other gains.
• the Commission to direct a charity to stop using a working name if it is too similar to another charity’s name or is offensive or misleading.
• the Commission to delay registration of a charity with an unsuitable name or delay entry of a new unsuitable name onto the Register of Charities. Working with the principal regulator, the Commission can also use these naming powers on exempt charities.

Aarti Thakor, Director of Legal & Accounting Services at the Charity Commission said:

“The latest changes introduced by the Charities Act 2022 give the charities we regulate more flexibility and greater powers. These are positive changes that will impact a significant number of charities, so it is important all organisations, big or small, take the time to check what this means for them. This is especially important if they are looking, for example, to dispose of land. We have updated our guidance to help trustees understand the changes, and our contact centre is open to those who need further support.”

The regulator’s updated guidance now reflects several changes to the legal requirements when disposing of land (selling, transferring or leasing charity land), which are aimed at making the process easier for charities. For example, the category of designated advisers who can provide charities with advice on certain disposals has been widened. A trustee, officer or employee can provide advice on a disposal if they meet the relevant requirements.

Additionally, trustees now have discretion to decide how to advertise a proposed disposal of charity land and charities are no longer required to get Commission authority to grant a residential lease to a charity employee for a short periodic or fixed term tenancy.

The regulator’s updated guidance on permanent endowment sets out the powers available to spend or borrow from permanent endowment. The guidance now also includes some examples to help trustees understand the requirements.

The Department for Culture, Media and Sport (DCMS)’s implementation plan sets out how provisions of the Charities Act 2022 are gradually being introduced. The Commission continues to support the department and the sector as these changes come into effect.

 

Please note the above can be found at https://www.gov.uk/government/news/charities-gain-new-powers-as-more-legislative-changes-come-into-force

Notes to editors:

1. The Charities Act 2022 gained Royal Assent on 24th February 2022.
2. The full Charities Act 2022 can be found on legislation.gov.uk
3. Explanation of the Charities Act 2022 implementation plan is available on gov.uk
4. Previous changes can be found on the Commission’s information page on phase 1 changes
5. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales.

Email pressenquiries@charitycommission.gov.uk

Out of hours press office contact number: 07976 942355

For those organisations who are or are looking to register to become a Charity. The Charity Commission has changed how it engages with the Trustees and indivusdial linked with registered charities.

In an article released on the 8th of November on the organisation’s website, the Commission talks about how they want to ‘build more supportive and meaningful relationships with you as an individual’, creating personalised individuals profile.

The article talks about what the ‘My Charity Commission Account’ is and how to set it up. It then talks about the benefits saying how it will allow those linked with more than one organisation to ‘have the option to view all your charities in one place. By using the same email address for each charity, you’ll only need to set up one account as it will link it to all your charities’

At Support Cambridgeshire can see how this could be useful for some, but we do also wonder if this is just another password which we all need to remember and a system we have to learn how to use.

To read the full article and to find out more click HERE