# June’s changes to Charity Act – in summary

- Link: https://fundraising.co.uk/2023/05/25/junes-changes-to-charity-act-in-summary/
- Published: 2023-05-25T10:04:44+01:00
- Author: Melanie May

**With more changes to the Charity Act coming in next month, the Charity Commission
has published short summaries on what’s due to come into effect.**

[The changes](https://www.gov.uk/guidance/charities-act-2022-guidance-for-charities)
are being introduced by the Charities Act 2022, which amends the Charities Act 2011.
Some changes [came into effect in October](https://fundraising.co.uk/2022/08/05/government-publishes-guidance-on-charity-act-changes-due-this-autumn/),
and more will follow by the end of this year.

Those coming into effect in June cover charity land, permanent endowment, and charity
names.

## 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/)

#### Charity land

Changes to the legal requirements on selling, transferring or leasing charity land
aim to simplify some of the requirements and include:

 * widening the category of designated advisers who can provide charities with advice
   on certain disposals
 * confirming that a trustee, officer or employee can provide advice on a disposal
   if they meet the relevant requirements
 * giving trustees discretion to decide how to advertise a proposed disposal of 
   charity land
 * removing the requirement for charities to get Commission authority to grant a
   residential lease to a charity employee for a short periodic or fixed term tenancy

#### Permanent endowment

On permanent endowment –property a charity must keep rather than spend –** t**he
Act will introduce new statutory powers to enable:

 * charities to spend, in certain circumstances, from a ‘smaller value’ permanent
   endowment fund of £25,000 or less without Commission authority
 * certain charities to borrow up to 25% of the value of their permanent endowment
   fund without Commission authority

Charities that cannot use the statutory powers will require Charity Commission authority.

There will also be a new statutory power that will enable charities that have opted
into a total return approach to investment to use permanent endowment to make social
investments with a negative or uncertain financial return, provided any losses are
offset by other gains.

#### Charity names

With charity names, the Act will enable the Commission to:

 * direct a charity to stop using a working name if it is too similar to another
   charity’s name or is offensive or misleading. A working name is any name used
   to identify a charity and under which the activities of the charity are carried
   out. For example, ‘Comic Relief’ is the working name of the charity ‘Charity 
   Projects’
 * delay registration of a charity with an unsuitable name or delay entry of a new
   unsuitable name onto the Register of Charities
 * use its powers in relation to exempt charities in consultation with the principal
   regulator

One other change is coming in next month: the definition of a connected person will
be updated to remove outdated language.

 * **[Charity Commission Business Plan reveals priorities for 2023-24](https://fundraising.co.uk/2023/06/23/charity-commission-business-plan-reveals-priorities-for-2023-24/)**(
   23 June 2023)
 * **[Charity Commission CEO to step down in 2024](https://fundraising.co.uk/2023/09/06/charity-commission-ceo-to-step-down-in-2024/)**(
   6 September 2023)
 * **[Regulator launches updated ‘proportionate’ Annual Return](https://fundraising.co.uk/2023/10/06/regulator-launches-updated-proportionate-annual-return/)**(
   6 October 2023)