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Third set of changes to Charities Act 2022 come into force

Melanie May | 8 March 2024 | News

Charities Act 2022

A new power that makes it easier for unincorporated charities to change their governing document, as well as new rules for gifts left to merged charities are the latest changes introduced by the Charities Act 2022. 

New power for unincorporated charities

The new power for unincorporated charities means that amending governing documents should now be simpler and that it follows the same process as other types of charities. Charities will still require the Charity Commission’s authority before certain amendments, such as changes to a charity’s purposes, take effect.

Trustees who have already applied to change their governing document do not need to resubmit their application as it will be assessed under the previous rules. The Commission advises trustees who are currently considering a change to their governing document to read through the updated guidance to understand the new legal requirements and process to follow.

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Support for merged charities on gifts

The other change is designed to help trustees of charities that have merged feel able to close their charity knowing that most gifts, such as legacies, should pass to the merged charity.

Other changes, which had previously been delayed, have come into force, including those that apply to charity-to-charity land disposals.

This marks the third point at which Charities Act 2022 provisions have come into force. Changes have already been introduced to make the process easier when charities dispose of land, or spend or borrow from their permanent endowment.

Aarti Thakor, Director of Legal & Accountancy Services at the Charity Commission said:

“As with all changes introduced so far, these latest powers are designed to make things easier for charities, where it is possible to do so.

 

“We encourage trustees to check what, if any, changes apply to them and then use our guidance to support them through the new processes.

 

“Anyone who has already applied to change their governing document doesn’t need to worry about re-applying.”

The Department for Culture, Media and Sport (DCMS)’s implementation plan sets out how provisions of the Charities Act 2022 are being introduced. Guidance is available to help trustees with the changes.

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