New and updated Charity Commission guidance following implementation of Charities Act 2022 changes

At the end of last month, the Charity Commission produced new guidance, and updated existing guidance, to reflect the implementation of the first tranche of changes under the Charities Act 2022.

The key changes implemented are as follows:

• A new statutory power for Royal Charter charities to change sections of their Royal Charter which they could not previously change, with the approval of the Privy Council.
• Amendments to cy-près powers
• Changes to the rules dealing with the proceeds of fundraising
• An extended power for charities to pay trustees for providing goods to the charity under certain circumstances (in addition to services, and goods connected to services)
• The automatic designation of trust corporation status for charitable corporate trustees of a charitable trust

As well as other amendments and updates: a full list can be found here.

A new suite of guidance has been published detailing the approach to charity fundraising appeals for specific purposes which reflects the change in approach to circumstances where a charity either fails to meet its fundraising target or raises too much (or where circumstances around the fundraising change generally). The guidance also includes information on appeal wording and recording keeping.

Guidance that has been updated includes:

• Charity emergency appeals (CC40) and Charity fundraising (CC20) to reflect the changes in fundraising appeals for specific purposes;
• Guidance on Royal Charter charities to include the new power of amendment;

• Trustees expenses and payments (CC11), Payments to charity trustees and Conflicts of interest (CC29) have all been amended to reflect the change allowing trustees to be paid in certain circumstances for providing goods to their charity.

The next tranche of changes is due to be implemented in Spring 2023 and we will provide further updates then.