The Charities Act 2022 (the Act) came into force in February and primarily focusses on simplifying some of the overly complex and resource intensive areas of charity law including:
- amending governing documents;
- land transactions; and
- permanent endowment.
Some of the Act’s provisions will come into force this autumn. In March (The Charities Act 2022 – moving charity law into more modern times) we looked at some of the changes that we considered to be of the most practical use to our clients. Now that the changes are fast approaching, we’ve set out below when the relevant new provisions will be coming into force and what you should be doing in preparation. The full Act can be found here.
Autumn 2022
The following provisions are expected to come into force this autumn:
- Sections 6 and 7: Cy-près powers
- Section 8: Power of the court and the Commission to make schemes
- Sections 15 and 16: Ex gratia payments
- Section 30: Remuneration of charity trustees etc. providing goods or services to charity
- Section 32: Trustee of charitable trust: status as trust corporation
- Section 36: Costs incurred in relation to Tribunal proceedings etc.
- Part of Section 37: Public notice as regards Commission orders etc.
- Part of Section 40 and Schedule 2: Minor and consequential amendments
Spring 2023
The following provisions are expected to come into force in spring 2023:
- Sections 9-14 and 35a: Permanent endowment
- Sections 17-23: Charity land
- Sections 25-28: Charity names
- Section 38 and 39: Connected persons
- Part of Section 40 and Schedule 2: Minor and consequential amendments
Autumn 2023
The following provisions are expected to come into force autumn 2023:
- Section 1-3: Charity constitutions
- Section 29: Powers relating to appointments of trustees
- Section 31: Remuneration etc. of charity trustees etc.
- Sections 33-35: Charity mergers
- Section 37: For remaining purposes
- Section 40 and Schedule 2: For remaining purposes
Comment
Whilst some of the provisions have a long lead in time until they are in force, this was always anticipated and, when it comes to primary legislation like the Act, expected. In addition, the Charity Commission will be required to make some changes to procedures and guidance and has said that it will need some time to complete this work.
In preparation, you should be familiar with the contents of the Act and the implications for your organisation. Our previous briefings on the Act can be found here and here.
Please do get in touch with your usual contact, or Rose Klemperer, with any questions about how the Act may impact your organisation.
