Charities Bill Receives Royal Assent
The Charities Bill received Royal Assent on 24 February 2022 and passed into law as the Charities Act 2022.
What Are the Changes?
The primary aim of the new law is to increase the efficiency of charities by reducing unnecessary administrative burdens, and enabling trustees to focus on delivering their charity's purpose. The changes made include provisions to:
- simplify the process of amending governing documents
- give charities more flexibility on the advice required when selling land
- grant more flexibility to use 'permanent endowment' funds
- remove legal barriers to charity mergers
The changes are summarised in our article on the Government's Response to Law Commission Recommendations. Many charities will welcome these changes.
How Will these Changes Be Implemented?
Nigel Huddleston, the charities minister, has said that the measures in the bill will be introduced on a staggered basis over the next 12 to 18 months so charities are “not overburdened by several changes at once”.
It is now the task of the Charity Commission to implement the changes as they become effective. Some changes will require secondary legislation, and changes will also need to be made to the Commission's guidance for trustees and underlying systems and processes, such as online digital services and staff training.
Charities can expect to hear from the Commission on the changes it makes as each of the provisions are introduced.