At the end of February 2022, the Charities Act 2022 (Act) received Royal Assent (we have previously blogged on the Charities Bill which can be read here). The Act essentially brings into law the Charities Bill.
The key points to note are detailed in our previous blog but the Charities Commission has summarised the purpose of the Act as follows:
“As a quick reminder, and for example, the provisions make it more straightforward for charities to change their Governing documents, grant more flexibility in using ‘permanent endowment funds’, allow greater flexibility around the advice needed when selling land, and allow trustees to be paid for goods provided to a charity in certain circumstances.
In summary, the changes aim to be largely enabling and empowering for trustees.”
The start date of the various sections of the Act is Governed by Section 41, which states:
“(3)This section comes into force on the day on which this Act is passed.
(4)The other provisions of this Act come into force on such day as the Secretary of State may by regulations made by statutory instrument appoint and different days may be appointed for different purposes.”
What this means is that, whilst the Act itself has received Royal Assent, further regulations must follow to bring into force the majority of Act. This is no doubt the reason that the Charity Commission has stated:
“Royal Assent is not the end of the process for us – it marks the beginning of the next stage of hard work, as it now falls on the Commission to implement many of the legislative changes. Indeed, implementing the Charities Act is one of our business priorities in the year ahead.
We will not be able to make all of the necessary changes in one go – not least because some of the changes require secondary legislation and others changes to our systems and processes. We have developed a plan that will see us aiming to gradually implement the changes between now and the autumn of 2023 (not all the provisions though are dependent on the Commission and may be brought into force earlier).”
The Charities Commission has also made the following promise:
“We will let charities know when each of the relevant provisions come into force and we have consequently updated certain pieces of guidance, or amended an online service.
We will also be clear about when the process has concluded – so when all the provisions that require changes from us have been implemented.”
We will, however, endeavour to blog as and when regulations are released implementing the various provisions of the Act.
How can Nelsons help
Kevin Modiri is a Partner in our expert Dispute Resolution team.
Should you have any queries regarding the subjects outlined in this article, please do not hesitate to contact Kevin or another member of the team in Derby, Leicester, or Nottingham on 0800 024 1976 or via our online enquiry form.
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