30/04/2024
Charity law reform – England & Wales
In previous editions we have reported on the reforms set out in the Charities Act 2022 that have come into effect. Similar to the previous changes, the most recent changes that came into force on 7 March 2024 are designed to make things easier for charities.
Making changes to governing documents
The implementation of a new statutory power for trusts and unincorporated associations to amend their governing documents. This requires approval from the Charity Commission for specified changes, aligning with procedures for charitable companies and Charitable Incorporated Organisations (CIOs).
Further changes include adjustments to resolution processes, consistency in legal tests, and provisions for public notification of alterations.
Additionally, statutory powers for small unincorporated charities to modify their documents have been repealed.
Selling, leasing or otherwise disposing of charity land
Provisions relating to disposals of land, taking out mortgages were due to come into force on 14 June 2023 however were delayed until now.
Charity mergers
New rules allowing for most gifts to charities that merge to take effect as gifts to the charity they have merged with.
Other provisions
Where the Commission decides it would be inequitable for a trustee not to be paid, the Act now enables the Commission to authorise a trustee to receive or retain payments for work completed for the charity. Additionally, the Act now enables the Commission to confirm defective or potentially defective trustee appointments.
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