Charities Act 2022: Summary of Changes

Earlier this week, guidance was issued by the Charity Commission on some of the changes that will begin coming into force later this year with the introduction of the Charities Act 2022. These include:

• Fund raising appeals: where fundraising appeals exceed, or fail to reach their target, the obligations on charity trustees will be simplified. For example, there will no longer be a requirement for charities to wait six months for donors to request a refund.
• Provision of Goods: In certain circumstances, the rules concerning when a trustee can be paid for providing goods and services will be relaxed. A review of the charity’s governing document may be required for those wishing to take advantage of this.
• Ex gratia payments: charity trustees will be given extended power to make small ex gratia (or “moral”) payments. This could arise if, for example, a charity was left a legacy but then after the donor’s death, evidence arose that he/she had changed his/her mind about the gift.  In those circumstances the charity may consider the right course of action to be to waive the gift. This change will provide greater discretion for charities to do so.
• Royal Charters: there will also be new statutory powers allowing Royal Charters to change certain sections that they are not currently able to amend (if approved by the Privy Council).

The hope is that these changes will (to some extent) simplify charity law complications for the benefit of charities moving forward.