First set of changes from Charities Act 2022 come into force

The first set of provisions from the Charities Act 2022 is now in force.

by | 31 Oct, 2022

These provisions include:

  • An extended power for charities to pay trustees for providing goods to the charity under certain circumstances (in addition to services, and goods connected to services).
  • A reduction in the administrative complexities surrounding fundraising appeals that do not reach, or exceed, fundraising targets (often known as “failed appeals”).
  • A new statutory power for Royal Charter charities to change sections of their Royal Charter, which they could not previously change, with the approval of the Privy Council.

Aarti Thakor, director of legal and accounting services at the Charity Commission, said the Charities Act 2022 is designed to make a positive, practical difference to charities and, where possible, to make things easier for trustees.

Since the Charites Act gained royal assent earlier this year, the commission has been working towards making necessary changes to support the Department for Culture, Media and Sport’s implementation plan, which has been put in place to gradually introduce provisions of the act. This work includes reviewing and updating guidance for trustees and providing training to staff. The commission is also amending some key digital services on its website.

Other provisions of the act now in force:

  • Confirm that the commission’s scheme-making powers include making schemes for charitable companies.
  • Confer trust corporation status automatically to existing and future corporate charities in respect of any charitable trust of which the corporation is (or, in the future, becomes) a trustee.
  • Update provisions relating to giving public notice to written consents and orders of the Charity Commission under various sections of the Charities Act 2011.
  • Mean that when a charity changes its governing document by parliamentary scheme, under section 73 of the Charities Act 2011, the scheme will, by default, always be under a lighter touch parliamentary process (known as the negative parliamentary procedure).

The next set of provisions is expected to come into force in spring 2023.

 

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