Recent changes affecting UK charities came into force

The recent powers introduced by the Charities Act 2022 continue the trend of simplifying processes for charities wherever feasible. Trustees are advised to review the changes applicable to their charity and utilize our updated guidance to navigate the new procedures. For those who have already submitted applications for governing document changes, there is no need to reapply.

The CharitiesAct 2022 has recently implemented a new set of changes, effective 7 March 2024. These changes aim to simplify certain processes for unincorporated charities and address gifts left to merged charities.

1. Simplified Governing Document Changes for Unincorporated Charities:

· Unincorporated charities now have a new power that streamlines the process of amending their governing documents. This aligns with the procedures followed by other types of charities.

· However, changes related to acharity’s purposes still require approval from the Charity Commission.

2. Guidance for Trustees:

· The Charity Commission has updated its guidance to assist trustees in understanding the recent changes and determining their applicability.

· Trustees who have already applied for governing document changes need not resubmit their applications; they will be assessed under the previous rules.

· Trustees currently considering changes should consult the updated guidance to navigate the new legal requirements and process.

3. Mergers and Gifts:

· The changes related to mergers provide reassurance to trustees of merged charities. Trustees can confidently close their charities, knowing that most gifts (including legacies) will pass to the merged entity.

· Additionally, previously delayed changes, including those concerning charity-to-charity land disposals, are now in effect.

This marks the third phase of implementing provisions from the Charities Act 2022. Earlier changes facilitated land disposals and financial transactions for charities.