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Resources

Charity Update: Summer 2022

Resources

Charity Update: Summer 2022

Our summer bulletin summarises the Charities Act 2022 and flags changes to Trustee meetings and AGMs compliance. There's also a reminder about the Fundraising Preference Service and an opportunity to give the Charity Commission your views about the Annual Return.

11 July 2022

In this issue:

The Charities Act 2022

In February this year, the Charities Bill received Royal Assent and passed into law as the Charities Act 2022. The changes are expected to be implemented in stages up to the autumn of 2023.

The purpose of the changes are to make things easier for the charity, while maximising the benefits the charity delivers.

There are 5 key changes:

  1. It will be easier to amend governing documents or Royal Charters, although Commission and the Privy Council’s approval will still be needed in some circumstances.
  2. There are simpler rules on what advice trustees must receive on land disposal and a larger pool of professional advisors.
  3. There is more flexibility over the use of permanent endowments, including allowing trustees to borrow up to 25% of the value of the permanent endowment fund without the Commission’s approval.
  4. Trustees are allowed to be paid for goods provided to the charity in certain circumstances, even if not explicitly stated in the governing document.
  5. There is more flexibility on spending funds raised from failed appeals. For example, charities will be able to spend donations below £120 on similar charitable purposes without needing to contact the donors for permission.

Changes to trustee meetings and AGMs

During the pandemic, the Charity Commission took a flexible approach to charities holding trustee meetings and AGMs outside the terms of their governing documents. This approach came to an end on 21 April 2022 and trustees should revisit their governing documents to ensure it allows them to meet in the way they want going forward.

Are you compliant with the Fundraising Preference Service?

The Fundraising Regulator has identified a significant number of charities who are not acting on requests from donors to stop direct marketing.

The Fundraising Preference Service (FPS) is a free service that allows donors to end contact with charities they no longer want to hear from and is particularly important to protect potentially vulnerable donors. It is important for charities to ensure that they are complying with data protection law relating to an FPS request.

A recent blog outlines some steps a charity can take to ensure they are compliant. Read: Is your charity compliant with the Fundraising Preference Service?

The Charity Commission Annual Return – Have your say

All registered charities in England and Wales with income over £10,000 and all Charitable Incorporated Organisations (CIOs) are required to submit an annual return with the Charity Commission.

The Charity Commission are proposing some new questions in the Annual Return to enable them to more effectively regulate the charity sector. Any changes will apply to charities with financial years starting on or after 1 January 2023.

They want to hear from charities and trustees to ensure that:

The consultation will close on 1 September 2022 and you can have your say at Charity Commission: revisions to the Annual Return 2023-25 Consultation

CAN WE HELP?

If your Charity or Not-for-Profit organisation has questions or concerns relating to any of this latest guidance, please do get in touch with our specialist team.  You’ll find their details on the right of this page.


Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. If you would like advice or further information, please speak to your usual Shipleys contact.

Copyright © Shipleys LLP 2022

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