Charities Act 2006

The Charities Act 2006 was the biggest overhaul of charity law in the UK for 400 years.

The Act reforms charity law and regulation to:

  • enable charities to administer themselves more efficiently and be more effective
  • improve the regulation of charity fundraising, and reduce regulation on the sector, especially for smaller charities
  • provide a clear definition of charity with an emphasis on public benefit
  • modernise the Charity Commission's functions and powers as regulator, increase its accountability, and preserve its independence from ministers.

One of the most fundamental changes was that charities would no longer be presumed to provide public benefit, but would have to prove that they do so in order to retain their charitable status and accompanying tax breaks.

The new law did not come into effect immediately after Royal Assent in November 2006. Instead various parts are being brought into force in sequence, starting from early 2007.

An implementation plan sets out this process and indicates when the various provisions of the Act will come into force.

The implementation plan was updated in November 2007 to reflect the latest position. 

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Professor Gareth Morgan
News

Charities Act 2011 gets Royal Assent

Governance | Tania Mason | 16 Dec 2011

The new law that consolidates all charity legislation for England and Wales received Royal Assent yesterday.

Alison McKenna, president of the Charity Tribunal
News

McKenna: Charities Act review should look at Attorney General's references

Governance | Tania Mason | 29 Nov 2011

The review of the Charities Act should re-examine the way that Attorney General’s references play out in the sector, according to Charity Tribunal president Alison McKenna.

Nicola Evans, Bircham Dyson Bell
News

Law Commission to conduct its own review of charity law

Governance | Tania Mason | 25 Nov 2011

The Law Commission has indicated that it plans to examine charity legislation after Lord Hodgson has concluded his review of the Charities Act, and there may even be another draft charities bill produced in 2015.


NCVO charity law review will examine issue of trustee payment
News

NCVO charity law review will examine issue of trustee payment

Governance | Tania Mason | 18 Nov 2011

Remuneration of trustees and potential alternatives to the Charity Tribunal are just two areas that the NCVO’s Charity Law Advisory Group will examine as part of its review of the Charities Act 2006.

Rosie Chapman, former director of policy and effectiveness at the Charity Commission
Legal

Review of the Charities Act 2006 – is it worth the fuss?

Governance | Rosie Chapman | 18 Nov 2011

Rosie Chapman provides a whistle-stop tour of the terms of reference of the NCVO's review of the Charities Act 2006.

Stephen Lloyd, senior partner, Bates Wells and Braithwaite
News

Stephen Lloyd to advise Lord Hodgson on Charities Act review 1

Governance | Kirsty Weakley | 17 Nov 2011

Stephen Lloyd has been appointed as the expert lawyer to advise Lord Hodgson of Astley Abbotts on the review of the Charities Act 2006.

Tribunal case is based on a hypothetical question, admits Attorney General
News

Tribunal case is based on a hypothetical question, admits Attorney General

Finance | Tania Mason | 16 Nov 2011

The point of law that the Charity Tribunal is clarifying this week in a four-day hearing on benevolent funds, involving at least eight barristers and several more solicitors, is a hypothetical question, counsel for the Attorney General has admitted.

Lord Hodgson of Astley Abbotts
News

Lord Hodgson to lead Charities Act review 1

Governance | Tania Mason | 8 Nov 2011

Conservative peer Lord Hodgson of Astley Abbotts has been chosen to lead the government’s review of the Charities Act 2006.

'Charitable purpose' clarification rejected in Charities Bill reading
News

'Charitable purpose' clarification rejected in Charities Bill reading

Governance | Niki May Young | 13 Sep 2011

An attempt to clarify the term 'charitable purpose' in the Charities Bill was revoked last night at the Bill's Committee stage first sitting in the House of Lords.

NCVO-led group to review the effects and burdens  of Charities Act 2006
News

NCVO-led group to review the effects and burdens of Charities Act 2006

Governance | Vibeka Mair | 31 Aug 2011

NCVO has set up a new group to lead an independent review of charity law, which will shadow the work of the government’s own review of the Charities Act 2006 due to start in November.

Fulton House, Swansea University
News

Welsh universities set to double the income of Welsh charity sector to £2bn

Governance | Vibeka Mair | 13 Oct 2010

Swansea University has become the second largest registered charity in Wales. Established in 1920, the university is part of a new wave of Welsh educational institutions to be registered by the Charity Commission following the implementation of the Charities Act 2006.

Portsmouth students union first in England to become a charity
News

Portsmouth students union first in England to become a charity

Governance | Vibeka Mair | 8 Jun 2010

The University of Portsmouth Students’ Union has already secured a £15,000 grant since becoming the first student union in the country to register as a charity with the Charity Commission last week.

Schools Council urges Commission to end 'illegal' public benefit guidance
News

Schools Council urges Commission to end 'illegal' public benefit guidance

Governance | Vibeka Mair | 17 Mar 2010

The Independent Schools Council's election manifesto demands that the Charity Commission end its "illegal" interpretation of public benefit.

Exempt charities and the effects of the Charities Act 2006
In-depth

Exempt charities and the effects of the Charities Act 2006

Governance | Andrew Malin | 6 Jan 2010

Andrew Malin explains the background to changes in the regulation of exempt charities in England and Wales, and offers an early insight into the approach of the Higher Education Funding Council for England to its new role as a principal regulator.

Trustee remuneration: what are the rules?
Regulation

Trustee remuneration: what are the rules?

Governance | 1 Nov 2009

This article by Penny Chapman considers the impact of the Charities Act 2006 (the Act) and recently updated Charity Commission guidance on various aspects of trustee remuneration.

Affinity Trust appoints independent pay committee
News

Affinity Trust appoints independent pay committee

Governance | Tania Mason | 27 Oct 2009

The Affinity Trust, formerly TACT UK, is appointing an independent pay committee to determine how much its board members should be paid, while at the same time applying for charitable status.

Keeping your legacies after a merger
Regulation

Keeping your legacies after a merger

Governance | 1 Nov 2008

When the Charities Act 2006 included a provision for a register of mergers, the benefits seemed clear. But it's not proved as straightforward as everyone hoped, says Debbie Nunn.

Views sought on a new legal form for charities
News

Views sought on a new legal form for charities

Finance | Ian Allsop | 10 Sep 2008

The Office of the Third Sector and the Charity Commission have launched a consultation on the draft details of what the new legal form for charities, the Charitable Incorporated Organisation, might look like and the rules it will have to follow

Clarifying trustee payments and expenses
News

Clarifying trustee payments and expenses

Governance | Dorothy Dalton | 1 Aug 2008

The Charities Act 2006 brought in changes which allow charity trustees to be paid for providing their charities with goods and services, and guidance published in June 2008 by the Charity Commission clarifies how boards should handle both these types of payments and general trustee expenses.

Breach of trust
Legal

Breach of trust

Governance | Lindsay Driscoll | 1 May 2008

Most trustees know that being "in breach of trust" raises the possibility of being personally liable. What exactly is "breach of trust" and in what circumstances does this lead to personal liability?

Charity Commission publishes draft guidance on education and fee-charging
News

Charity Commission publishes draft guidance on education and fee-charging

Governance | 8 Apr 2008

The Charity Commission launched further draft supplementary public benefit guidance for charities, with the publication of Public Benefit and the Advancement of Education and Public Benefit and Fee-charging.

Whistleblowing
In-depth

Whistleblowing duties and the Charities Act 2006

Finance | 27 Mar 2008

Janet Slade and Neville Brownlee explore issues around material significance and whistleblowing.

Emerging mergers
Regulation

Emerging mergers

Governance | Robert Porter | 22 Jan 2008

Are the new merger provisions a problem or panacea?

Guidance on public benefit
Legal

Guidance on public benefit

Governance | 2 Jan 2008

The Charity Commission has recently published its general guidance for charities on public benefit.

Property - Charities Act 2006
In-depth

Property - Charities Act 2006

Finance | 1 Jul 2007

What property changes has the Charities Act 2006 introduced?

Visiting dignitaries
Finance

Visiting dignitaries

Governance | Neal Green | 1 Jul 2007

A trustee who has recently joined the board of an international charity registered in England is expected to visit one foreign project every other year and is embarrassed to ask about who pays for the cost of these visits.

Spending endowments
In-depth

Spending endowments

Finance | Charlotte Watts | 1 May 2007

There is good news in the Charities Act 2006 for charities wishing to spend some or all of their permanent endowment

KCLSU: a change of culture
Case studies

KCLSU: a change of culture

Governance | 1 Mar 2007

In 2006 King's College London Students' Union became a company limited by guarantee. Steve Vaid, its chief executive, discusses his role, and the future of the charity.

Charities Act: it's been a long time coming...
Legal

Charities Act: it's been a long time coming...

Governance | Anne-Marie Piper | 1 Jan 2007

Anne-Marie Piper looks at the aspects of the Charities Act 2006 which will impact on the governance of charities.

Since you inquired...
Case studies

Since you inquired...

Governance | Chris Priestley | 1 Dec 2006

Fraud, malpractice, misapplication and an excess of emotiveness: some recent inquiries - and what charities can learn from them.

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