Charities Act 2022 Update

Finally, on 31 October 2022, the first tranche of the Charities Act 2022 came into force. Whilst the changes are largely of an administrative nature or only likely to impact a few very specific situations, two particular areas may impact a number of charities:

Appeal fundraising – Firstly, the requirement to wait 6 months before spending the money raised (in case donors asked for a refund) has been removed. However sometimes charities raise too much or too little money for an appeal, or circumstances change, and the donations cannot be used as intended. The Charities Act 2022 simplifies and streamlines the rules in this area.

Payment to Trustees – It is a fundamental rule that charity trustees are not permitted to make any gain from their position as trustees. A charity‚Äôs constitution often prohibits any form of payment to Trustees. Under the Charities Act 2011 there is a limited exception to this rule which allows trustees (or people connected to them) to be paid for services they provide to the charity if certain conditions are met…

To read our full update click here

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