# Government publishes guidance on Charity Act changes due this autumn

- Link: https://fundraising.co.uk/2022/08/05/government-publishes-guidance-on-charity-act-changes-due-this-autumn/
- Published: 2022-08-05T10:22:44+01:00
- Author: Melanie May

**The Charities Act 2022 applies to England and Wales, with changes coming into 
force in autumn 2022, spring 2023 and autumn 2023.**

The government has now [published more detail](https://www.gov.uk/guidance/charities-act-2022-guidance-for-charities)
on the key changes planned for this autumn. These cover:

 * Paying trustees for providing goods to the charity
 * Making moral or ‘ex gratia’ payments from charity funds
 * Fundraising appeals that do not meet, or exceed, targets
 * Power to amend Royal charters

#### Paying trustees for providing goods to the charity

Charities currently have a statutory power that they can use, in some circumstances,
to pay trustees for providing a service beyond usual trustee duties, or goods connected
to that service. Under the changes, charities will be able to pay trustees in certain
circumstances for just providing goods to the charity.

## Advertisement

 [⌊Posthub advert. You create the campaign. We'll handle the postal journey. Get started at post-hub.co.uk.⌉](https://fundraising.co.uk/ads/posthub-20261007-300x250/)

This will mean trustees could be paid for services only, for example estate agency
or computer consultancy, services and associated goods, such as plumbing or painting
service and any associated materials, and following implementation of the Act in
autumn, goods only, for example supplying stationery to the charity.

#### Making moral or ‘ex gratia’ payments from charity funds

Sometimes charity trustees receive a request to make a moral, or ‘ex gratia’, payment
from their charity’s funds or property, or to waive their right to receive funds
or property, such as when a charity receives a legacy and there is evidence the 
donor changed their mind after making their will.

The Charities Act 2022 will introduce new powers that will also be available to 
Royal Charter and statutory charities, and which will enable:

 * charities to process requests for ‘small’ amounts without applying to the Commission,
   based on factors like annual gross income and the amount of the request
 * trustees to delegate the decision-making for these payments to other individuals
   or groups within the charity. For example, the chief executive or a trustee sub-
   committee

However, payment thresholds will apply, and if exceeded, charities will still have
to apply to the Commission to proceed.

#### Fundraising appeals that do not reach, or exceed, the target

The Charities Act 2022 will remove the current requirement in some circumstances
for charities to wait six months for donors to ask for a refund. There will also
be a simpler process for obtaining the Commission’s authority, and if the donations
available to be spent on purposes different to those they were raised for are less
than £1000, trustees can act without the Commission’s involvement providing they
comply with the new legal requirements.

#### Power to amend Royal Charters

These charities will be able to use a new statutory power to change sections in 
their Royal Charter which they cannot currently change, providing that change is
approved by the Privy Council.

There will also be a number of other changes for this autumn, while later planned
changes will include:

 * changes to how charities sell, lease or transfer land (spring 2023)
 * greater flexibility to make use of ‘permanent endowment’ – this is money or property
   originally meant to be held by a charity forever (spring 2023); and
 * changes to how charities can amend their governing documents (autumn 2023)

The guidance can be read in full [here](https://www.gov.uk/guidance/charities-act-2022-guidance-for-charities).