There have been a number of changes and planned changes to the Charity Act. Here is a quick overview of some of the main Charities Act changes.
Charity names
One of the changes to be introduced in 2023 was in relation to charity names.
The Charity Commission can now direct a charity to change its working name if it is too similar to another charity’s name or is offensive or misleading.
The Commission can also delay registration of a charity with an unsuitable name or delay entry of a new unsuitable name onto the Register of Charities.
The changes are designed to enhance transparency, avoid confusion, and safeguard the distinct identities of charitable entities.
Ex gratia payments
One of the most eagerly awaited changes scheduled for introduction by the Charities Act 2022 is the revision of the law governing ex gratia payments made by charities.
We had expected this provision to be implemented by now, but it was not included in the list of changes due to come into effect in early 2024, and it is still simply said to be “under further consideration prior to commencement”.
Sections 15 and 16 of the Charities Act 2022 dealing with ex gratia payments are likely to be of particular interest to trustees and officers within the charity sector who deal with legacy disputes. The proposed changes will introduce new powers to allow ex gratia payments to be made where charity trustees feel a moral obligation to make a payment to a non-beneficiary but have no legal power to do so.
Under the present legislative framework, a charity’s ability to reach a financial settlement in a legacy dispute is restricted. The new powers will allow them to make “small” ex gratia payments without the authority of the Charity Commission. The definition of “small’ varies according to the charity’s gross income, but it can be as much as £20,000.
Disposal of charity land
One of the changes that was implemented this summer related to the disposal of charity land, with the legal requirements being simplified.
This includes trustees now being given discretion to decide how to advertise a proposed disposal of charity land and confirmation that they (together with officers and employees) can provide advice on a disposal if they meet the relevant requirements.
Charities Act changes scheduled for 2024
The changes being introduced by the Charities Act 2022 are continuing to be rolled out, with the final set of changes now due to come into effect in “early 2024”.
Among the changes now scheduled to be introduced in 2024 are powers relating to appointments of trustees, and provisions governing the remuneration of charity trustees.
Constitutions and mergers
Just in case anyone missed it, an announcement was made in October 2023 that the further changes to be introduced by the Charities Act 2022 would not now be implemented until the beginning of next year.
This includes provisions relating to charity constitutions as well as charity mergers.
