An End To The Charity Law Hotchpotch?

On 20 March 2015 the Law Commission published its second consultation paper on various technical issues in charity law. The first covered social investment by charities. The second, at 300 pages, embraces a wide range of topics suggested by the Charity Commission and the 100-plus recommendations made by Lord Hodgson of Astley Abbotts in his review of charity law (Trusted and independent: Giving charity back to charities, 2012).

The detailed paper highlights existing technical challenges within the law facing the sector and attempts to provide reasonable solutions that will make life easier for trustees and those advising them in their duties. In particular, the paper addresses:

changing governing documents, including charitable purposes and administrative matters Royal Charter and statutory charity changes – including the role of the Privy Council, Charity Commission and Cabinet Office in changing their governing documents fundraising appeals that fail (or that surpass expectations) and the need to apply funds under cy-près (applying funds 'as near as possible' to original purpose) the procedure for disposing and acquiring land permanent endowment payments to charity trustees ex-gratia payments incorporation, merger and insolvency Charity Commission powers – incorporating charity names and determining the identity of a charity's trustees the Charity Tribunal and the courts. There are almost 100 calls for the sector to provide feedback on specific questions or provide real-life experiences of the cumbersome nature of the highlighted aspects of charity law. The paper does not cover any of the proposals recommended and accepted in the draft protection of charities bill issued in late 2014.

Although a hefty read, it is worth persevering with the document. There are clear and engaging summaries of current legislation and the problems it...