Mergers can cause major legal problems

Howard Lake | 21 May 2001 | News

Charities face major legal problems if they merge, according to a new study

A study by the University of Liverpool’s charity law unit has found that charity mergers can produce considerable legal restraints upon charities’ functions. The report Legal Issues in Charity Mergers looked at 13 mergers involving 29 charities and found two key problematic areas:first, restrictions on some charities’ assets may stop them being used by the new merged entity. Secondly, different constitutions can create difficulties in running the merged charity.

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About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.