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Charity law resources

Lawfinder: Law Resources: Charity

The Charities Act 2006

(From the Charity Commission, November 2007)

So, what does the Charities Act 2006 mean for you and your charity?

You'll need to know about it because in many areas it makes things easier for you and it unties some of the 'red tape' you've had to cut through in the past.

What are the provisions of the Charities Act 2006?
When will it all happen?
Where can I find more information about some of the key areas?
How did this legislation develop?

What are the provisions of the Charities Act 2006?

A plain English guide, 'Charities Act 2006 – What trustees need to know', is aimed primarily at trustees of small, volunteer-led charities. However, it provides a useful guide for anyone wishing to gain a clear understanding of the Act's main provisions. This link takes you to an interactive version.

You can download a printable version of this guide in English, Welsh or large print or order a hard copy by visiting the Office of the Third Sector's website.

To see the text of the Act itself together with explanatory notes, visit the Office of Public Sector Information's website.

When will it all happen?

Not all the Act's provisions can be implemented at once. Some came into force early in 2007 and more in the autumn, but others need to wait until new rules or regulations are ready. In some cases we or the Office of the Third Sector are undertaking consultations on these. You can find out more on this from the home pages of the key areas.

The Office of the Third Sector has issued an updated implementation plan
We have updated our guidance to deal with measures already in force – Summary of updated operational guidance and publications

Where can I find more information about some of the key areas?

We have identified some of the key areas in the Act. The following pages will help you track progress and help guide you through the current situation together with the changes as they come on line. You may also be able to assist by taking part in some of the consultations we or the Office of the Third Sector are conducting, details of which you can find on these pages.

Charitable Purposes and Public Benefit – the Act defines thirteen charitable purposes and trustees must now show how the purposes of their charity provide public benefit
SORP, Charity Accounts and Reporting – along with some other measures, the Act makes changes to the different types of scrutiny for charity accounts, bringing company and non-company charity accounts into line with each other
The Charity Tribunal – the Act establishes a new Charity Tribunal, a further avenue of appeal for trustees wishing to challenge a legal decision of the Commission
Mergers and Collaborative working – in response to the Act we keep a register to show charities that have registered a merger with us. The key benefit to charities is that this will simplify the transfer of gifts and legacies to the new charity
Charitable Incorporated Organisation (CIO) – this new charity structure will allow trustees to form a company but without needing dual registration with both us and Companies House

How did this legislation develop?

Although the Act is now law, you may be interested in reading the background and development stages it went through on its way through Parliament.

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