Latest changes from Charities Act 2022 come into force
Today (Thursday 7 March 2024), the latest set of changes being introduced by the Charities Act 2022 come into force.
This introduces a new power which makes it easier for unincorporated charities to change their governing document, as well as new rules which now apply to gifts that are left to charities that have merged.
The Commission has updated its guidance to help trustees understand the changes and determine if the changes apply to them.
The new power for unincorporated charities will mean that amending governing documents will now be simpler for these charities and follows the same process as other types of charities. Charities will still require the Charity Commission’s authority before certain amendments, such as changes to a charity’s purposes, take effect.
The regulator has reassured trustees who have already applied to change their governing document that they do not need to resubmit their application – it will be assessed under the previous rules. Trustees who are currently considering a change to their governing document are advised to first read through the updated guidance to understand the new legal requirements and process to follow.
The changes relating to mergers are designed to help trustees of charities that have merged. Trustees in this situation should feel able to close their charity with confidence, knowing that most gifts, such as legacies, should pass to the merged charity.
Certain additional changes, which had previously been delayed, have come into force, including those that apply to charity-to-charity land disposals.
This marks the third point at which Charities Act 2022 provisions have come into force. Changes have already been introduced to make the process easier when charities dispose of land, or spend or borrow from their permanent endowment.
Aarti Thakor, Director of Legal & Accountancy Services at the Charity Commission said:
As with all changes introduced so far, these latest powers are designed to make things easier for charities, where it is possible to do so.
We encourage trustees to check what, if any, changes apply to them and then use our guidance to support them through the new processes.
Anyone who has already applied to change their governing document doesn’t need to worry about re-applying.
The Department for Culture, Media and Sport (DCMS)’s implementation plan sets out how provisions of the Charities Act 2022 are being introduced. The Commission continues to support the department and the sector as these changes come into effect.
Notes to editors:
- The Charities Act 2022 gained Royal Assent on 24th February 2022.
- The full Charities Act 2022 can be found on legislation.gov.uk
- Explanation of the Charities Act 2022 implementation plan is available on gov.uk
- Previous changes came into effect on 31 October 2022 and 14 June 2023, and can be found on the Commission’s information page.
- The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales.
- All charities must inform the Commission when making changes to their governing documents but require the Commission’s prior authority when making regulated amendments to their governing documents using the statutory power.
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