Charities Act 2022: information about the changes being introduced

This page is about changes being introduced by the Charities Act 2022,2022 which(the willAct), amendwhich amends the Charities Act 2011.

TheThis page provides short summaries of the changes that are expecteddue to come into forceeffect in autumnSpring 2022, spring 2023 and autumnlinks to our updated guidance for the changes that came into force on 31 October 2022.

The final set of changes are due to come into effect in Autumn 2023.

An overview of the full changes can be found on this page: Charities Act 2022: implementation plan. This includes:

• changes

  Changes due to howbe charitiesintroduced sell,in leaseSpring or2023

  These transferare landshort (duesummaries of the changes due to come into effect in springSpring 2023)

• greater2023. flexibilityWe towill makepublish usethe updated guidance on these topics on the day the provisions are implemented.

  Selling, leasing or otherwise disposing of ‘permanentcharity endowment’land

  Charities –must thiscomply iswith moneycertain legal requirements before they dispose of charity land. Disposal can include selling, transferring or propertyleasing originallycharity meantland. toThe beAct heldwill bysimplify some of these legal requirements. The changes will include:

  • widening the category of designated advisers who can provide charities with advice on certain disposals
  • confirming that a charitytrustee, foreverofficer (dueor toemployee comecan intoprovide effectadvice inon springa 2023);disposal andif they meet the relevant requirements
  • changesgiving trustees discretion to decide how to advertise a proposed disposal of charity land
  • removing the requirement for charities canto amendget theirCommission governingauthority documentsto (duegrant a residential lease to comea intocharity effectemployee infor autumna 2023)short periodic or fixed term tenancy

  This

• clarifying pagethe provideslegal shortrequirements summariesthat apply when a charity is selling, leasing or otherwise disposing of land to another charity
• updating the changesstatements and certificates that comemust intobe effectincluded onin 31disposal October.

  Payingor trusteesmortgage documents for providingcharity goodsland

Using topermanent theendowment

Put simply, permanent endowment is property that your charity must keep rather than spend.

CharitiesThe alreadyAct havewill aintroduce new statutory powerpowers thatto theyenable:

• charities canto use,spend, in certain circumstances, tofrom paya trustees‘smaller forvalue’ providingpermanent aendowment servicefund of £25,000 or less without Commission authority
• certain charities to borrow up to 25% of the charityvalue beyondof usualtheir trusteepermanent duties,endowment orfund goodswithout connectedCommission toauthority

Charities that service.cannot use the statutory powers will require Charity Commission authority.

ThisA new statutory power iswill beingenable changedcharities bythat thehave Charitiesopted Actinto 2022.a Astotal areturn result,approach charitiesto willinvestment beto ableuse permanent endowment to paymake trusteessocial ininvestments certainwith circumstancesa fornegative justor providinguncertain goodsfinancial toreturn, theprovided charity.any losses are offset by other gains.

Charity names

So,The usingCommission thecan statutorycurrently power,direct trusteesa couldcharity beto paidchange for:its name if it is too similar to another charity’s name or is offensive or misleading.

The Act will enable the Commission to:

• servicesdirect only,a forcharity exampleto estatestop agencyusing ora computerworking consultancy
• servicesname andif associatedit goods,is fortoo examplesimilar plumbingto another charity’s name or paintingis serviceoffensive andor misleading. A working name is any associatedname materialsused suchto asidentify plumbinga partscharity orand paint
• followingunder implementationwhich the activities of the Actcharity inare autumn,carried goodsout. only,For forexample, example‘Comic supplyingRelief’ stationeryis tothe working name of the charity

Read our‘Charity updated guidance:

Projects’
• Paymentdelay toregistration of a charity trustees:with whatan unsuitable name or delay entry of a new unsuitable name onto the rulesRegister areof Charities
• Trusteeuse expensesits andpowers paymentsin (CC11)

Fundraisingrelation appealsto thatexempt docharities notin raiseconsultation enoughwith orthe raiseprincipal tooregulator

Other much

Sometimes,The appealsdefinition doof nota raiseconnected theperson amountwill neededbe updated to deliverremove theoutdated aimlanguage.

Changes youthat wanted,came orinto raiseforce tooon much31 soOctober that2022

Paying theretrustees arefor fundsproviding leftover.services Oror circumstancesgoods mayto changethe andcharity

Charities younow cannothave usea thestatutory donationspower asto youpay intended.

Thetrustees Charitiesfor Actproviding 2022goods willalone reduceto complexitythe surroundingcharity whatin trusteescertain needcircumstances.

Using tothe donew instatutory thesepower, situations.trustees Forcan example:be paid for:

• theservices currentonly, requirementfor inexample someestate circumstancesagency foror charitiescomputer toconsultancy
• services waitand sixassociated monthsgoods, for donorsexample toplumbing askor forpainting aservice refundand willany noassociated longermaterials apply
• theresuch willas beplumbing aparts simpleror processpaint
• goods only, for obtainingexample oursupplying authority;stationery thisto willthe replacecharity

Read theour needguidance:

• Payment forto thecharity Commissiontrustees: towhat makethe arules schemeare
• ifTrustee theexpenses donationsand payments (CC11)

Fundraising appeals that cando benot spentraise onenough newor purposesraise (differenttoo tomuch

There theare purposesnow yousimpler raisedrequirements themfor for)trustees areto lessfollow thanif £1000,an trusteesappeal candoes actnot withoutraise the Commission’samount involvementneeded ifto theydeliver complyits withaim, raises too much or circumstances change and the newdonations legalcannot requirements be used as intended.

Read our new guidance:

• Charity fundraising appeals for specific purposes

You can read a blog produced by the Fundraising Regulator about these changes.

Power to amend Royal Charters

These charities willhave be able to use a new statutory power to change sections in their Royal Charter whichwith theyapproval cannotfrom currently change, if that change is approved by the Privy Council.

Read our updated guidance:

• Royal Charter charities

Other provisions

OtherIn changesaddition, plannedthe tofollowing comechanges intoare effectnow onin 31 October.effect:

The

• the Charity Tribunal willhas have the power to make “authorised costs orders” following an application to it by thea charity. The order would authorise payments in relation to proposed or ongoing Tribunal proceedings out of the funds of the charity. Read our guidance about decision reviews and the Charity Tribunal.

  In addition, the Act will:

  Tribunal
  • confirm that the Commission’s scheme-making powers include making schemes for charitable companies
  • confer trust corporation status is automatically toconferred on existing and future corporate charities in respect of any charitable trust of which the corporation is (or, in the future, becomes) a trustee
  • updateupdated 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 changesamends its governing document by parliamentary scheme,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)