On Monday 31 October 2022, the Government announced the implementation of the following provisions of the Charities Act 2022:
The key changes which came into force on 31 October 2022 include:
- Statutory power for trustees to be paid for the provision of goods to their charity. These changes will mirror provisions already included in the Charities Act 2011 enabling trustees to be paid for services and goods provided in connection with a service to their charity.
- Simplification of the process for handling donations which can no longer be spent on their intended fundraising campaign. Under the new Charities Act 2022, charities will no longer have to wait 6 months for a donor to request a refund and will be entitled to apply any donations below £1,000 towards a different campaign without the Charity Commission’s prior approval. The Charities Act 2022 also simplifies the process by which the Charity Commission may authorise any reallocation of donated funds.
- New powers for charities to amend their Royal Charters. Automatically conferring trust corporation status onto charitable companies. This will apply to existing and future charitable companies.
- Updates to the Charity Commission’s powers to make schemes for charitable companies, public notice requirements and the application of negative parliamentary procedure for any charity updating its governing document under s.73 Charities Act 2011.
Dates for the implementation of the next round of Charities Act 2022 provisions to be introduced have yet to be announced but are expected in Spring and Autumn 2023.
If you have any queries about how these changes might affect your charity please feel free to contact our Church and Charities team at PWW who would be happy to answer any queries you might have.