With so much change afoot, from changes brought in by the Charities Act 2022 to additional guidance issued by the Charity Commission, it can be easy to miss key updates affecting the charity sector.
Muckle LLP’s charities group summarises some key updates from 2024:
Phase three of the Charities Act 2022
In March last year, the third and final stage of the Charities Act 2022 came into force. The key changes include the rules that apply when a charity wants to change its charitable purposes or amend its governing document or dispose of charity land.
The changes also introduced new powers for the Charity Commission, including the power to ratify a defective appointment or election of a trustee and to authorise a trustee to receive or retain payment where it would otherwise be inequitable to refuse.
Updated guidance on meetings
In July 2024, the Charity Commission updated its guidance on how charities should plan, run and record their trustees’ and members’ meetings.
Trustees are recommended to review their governing document to ensure that it allows virtual and hybrid meetings. If not, the guidance suggests that any decisions made during such meetings may be invalid.
Revised decision-making guidance
The Charity Commission launched revised decision-making guidance for trustees in September 2024, designed to encourage a greater number of trustees to access the guidance and apply its principles.
The guidance focuses on key principles of trustee decision-making established by the courts and reminds trustees that the Charity Commission will not step in and make decisions for trustees, therefore good quality reports and minutes are crucial, particularly for tricky or significant decisions.
Finding the specialist charity law and governance advice you need
Muckle’s charity group, a team led by charity specialist lawyers, is here to support you with the breadth of issues affecting charities.
For advice, contact Samantha Pritchard, charities partner at Muckle LLP: samantha.pritchard@muckle-llp.com
