Changes to Scottish charity law come into effect on connections to Scotland, & due diligence on trustees
Melanie May | 2 October 2024 | News
Two new changes to charity law in Scotland have come into effect as of yesterday, 1 October, relating to a charity’s connection to Scotland and due diligence on trustees.
The measures are part of changes coming into effect as part of the Charities (Regulation and Administration) (Scotland) Act 2023. Other measures are still to be introduced from mid-2025 onwards.
Due diligence responsibilities
Charities must always check if a trustee is eligible to take up the position before they start and should regularly review disqualification criteria against its existing trustees.
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To help charities with trustee due diligence, the Scottish Regulator’s (OSCR) website now has a publicly searchable record of people who have been disqualified from serving as charity trustees in Scotland by the Court of Session – unless they have a waiver of disqualification. Those on the list must not be appointed as, or serve as, such.
In addition to being permanently disqualified by the Court of Session, someone can also be disqualified for:
- having an unspent conviction for an offence involving dishonesty or an offence under the Charities and Trustee Investment (Scotland) Act 2005
- being an undischarged bankrupt or having a Protected Trust Deed
- being removed under either Scottish or English Law or the courts from being a charity trustee
- being disqualified from being a company director.
A future measure coming in mid-2025 will extend this to include, for instance, those convicted of terrorism, or who are on the sexual offenders register.
Charity connection to Scotland
In the second change, as of 1 October charities on the Scottish Charity Register must be able to demonstrate a connection to the country when conducting their activities.
This includes whether they have (or intend to have) a principal office in Scotland, occupy (or intend to) any land or premises in Scotland, and if they are established under the law of Scotland.
Anyone with concerns about a charity’s connection to Scotland, can report it to OSCR.
Upcoming changes
The remaining changes to the Charities (Regulation and Administration) (Scotland) Act 2023, which should come into force in mid-2025 onwards include:
- the publication of charity annual reports and accounts on the Scottish Charity Register
- the publication of trustee names on the Scottish Charity Register
- a schedule of charity trustees retained by OSCR
- a record of charity mergers on OSCR’s website; and
- updates to the disqualification criteria for charity trustees.
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About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.