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The New Charities Act 2022: What you need to know

Updated: May 11, 2022

The Charities Act 2022 has come into effect. Whilst this might not have a big impact on how your charity operates day-to-day, it aims to make it easier for charities in a number of ways, especially around spending donations, amending constitutions and charity mergers.

This law amends a number of key sections of the Charities Act 2011, one of the primary pieces of legislation for charities in England and Wales.

Russell-Cook LLP have recently published a useful summary of the key information that charities need to know about this. If these changes affect your organisation, we recommend seeking specialist legal advice.

The main changes the Act will introduce include:

  • If a fundraising appeal fails, charities will be able to spend small donations on another project

  • Unincorporated charities (eg. trusts) will be able to amend their constitution more easily

  • Changes to the tests for charitable companies to amend their objects

  • Charities will have more flexibility when getting advice on the sale of land

  • Charities will be able to borrow from permanent endowment and invest it more freely

  • Charities will be able to make small ‘ex gratia’ payments without getting consent from the Charity Commission

  • Legacies will be less likely to get lost after incorporations and mergers

  • There will be an easier solution if trustee appointments have not been made correctly

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