Charity Commission Revises Initial Coronavirus Guidance

• Published date: 07 July 2020
• Subject Matter: Corporate/Commercial Law, Coronavirus (COVID-19), Charities & Non-Profits , Financing
• Law Firm: Rollits LLP
• Author: Ms Gerry Morrison

The Charity Commission has responded to criticism of guidance which it has recently issued to charities in respect of reporting serious incidents if they are adversely impacted by Coronavirus.

Charity trustees have legal duties to report serious incidents to The Charity Commission which may include having to suspend or withdraw all or part of their charity's services if it cannot operate due to the impact of Coronavirus on its operation. It could also include charities that are facing financial difficulties as a result of suspension or cancellation of public events that draw in essential funds, or the suspension or withdrawal of grant funding because grant-makers are experiencing falls in the value of their investments.

The Charity Commission has revised the guidance after facing criticism for adding unnecessary pressure to charities and their trustees particularly when trustees are already inundated with information about risk management and managing their charity's finances. The Charity Commission has acknowledged that the guidance was not as helpful as they would have liked it to be. A new update has subsequently been issued by The Charity Commission in which charities have been advised to refer to the current serious incident guidance and "use their own judgement" when assessing whether a report should be made to The Charity Commission. When using their own judgment in assessing the impact of the coronavirus pandemic on the charity, Charity Trustees must have regard to the charities activities, its mission and how they can safeguard individuals who come into contact with the charity from harm.

Charity trustees are faced with an unprecedented situation where urgent decisions have to be made about suspending services and the knock-on effect on the charity's finances and service users, dealing with staff and volunteer shortages, HR issues and a fall in value of their investments. Practical considerations for trustees faced with being unable to hold face to face meetings are to check the charity's governing document for provisions which allow trustees to take decisions by electronic means and/or passing written resolutions. For charities with good conferencing facilities meetings can be held by telephone or video conference. Fortunately many are in a position where...