Charities spared EU legacy 'clawback' threat

Fundraising | Celina Ribeiro | 18 Dec 2009

The government has rejected a European Union law which could have jeopardised UK charities’ legacy income.

The proposed reform would have meant that UK courts would have to respect foreign ‘clawback’ principles in contested legacy cases, which could potentially have seen charities lose bequests made in wills or, in the worst cases, gifts made by an individual while they were alive.

Foreign Secretary Jack Straw said that one of the reasons for rejecting the reform was the possible hardship the clawback principle could have for organisations such as charities.

“The Government has concluded that the potential benefits of this proposal are outweighed by the risks and has therefore decided that the best course of action is not to opt in to the proposal and the UK will therefore not be bound by the outcome,” he said.

The Institute of Fundraising, which had warned that the law could result in “massive losses” for charities, has welcomed the government’s decision.

“The Institute is delighted that the Government has listened and has responded to our views, and those of our member organisations who responded to the public consultation,” the organisation said in a statement.

Directory: Institute of Fundraising

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