Latest set of changes to charity law come into effect

Charity

The latest set of changes introduced by the Charities Act 2022 has come into effect. 

The Charity Commission said the new rules, which came into force yesterday, would make it easier for unincorporated charities to change their governing document and for merged charities to receive gifts left for one of their former organisations. 

The regulator said the new power for unincorporated charities to amend their governing documents would now follow the same process as other types of charities. 

They would still need the commission’s permission to make some changes, such as changes to their charity’s purposes. 

It said the changes around mergers would help trustees in this situation “feel able to close their charity with confidence, knowing that most gifts, such as legacies, should pass to the merged charity”. 

It also said other changes that had been delayed, including around charity-to-charity land disposals, had also now come into effect. 

The regulator said it had updated its guidance for charities on changes introduced by the Charities Act 2022.

Aarti Thakor, director of legal and 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 reapplying.”

It is the third tranche of changes to charity law that have come into effect since the Charities Act 2022 was given royal assent. 

Changes that have already been introduced include making it easier for charities to dispose of land or spend or borrow from their permanent endowment.

Rules in the act that will give charity trustees the ability to make ex gratia payments of up to £20,000 without needing to consult the Charity Commission are expected to come into effect later this year. 

This will be subject to an exclusion for relevant national museums and galleries, the Department for Culture, Media and Sport has said. 

The government is due to complete a review of the act between three and five years from when the legislation received royal assent, which was in February 2022. 

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