The first set of changes from the Charities Act 2022 come into force

On 31 October 2022, the first set of changes introduced by the Charities Act 2022 came into force, introducing a range of provisions, including new powers for trustees.

These provisions include:

• 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).
• A reduction in the administrative complexities surrounding fundraising appeals that do not reach, or exceed, fundraising targets (often known as ‘failed appeals’).
• 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.

Other provisions of the Act now in force:

• confirm that the Commission’s scheme-making powers include making schemes for charitable companies
• confer trust corporation status automatically to existing and future corporate charities in respect of any charitable trust of which the corporation is (or, in the future, becomes) a trustee
• update provisions relating to giving public notice to written consents and orders of the Charity Commission under various sections of the Charities Act 2011
• mean that when a charity changes its governing document by parliamentary scheme, under section 73 of the Charities Act 2011, the scheme will by default always be under a lighter touch parliamentary process (known as the negative parliamentary procedure)

More detailed information on these changes can be found here: https://www.gov.uk/guidance/charities-act-2022-guidance-for-charities

The next set of provisions are expected to come into force in Spring 2023.

You can read more about the Charities Act 2022: implementation plan here: https://www.gov.uk/guidance/charities-act-2022-implementation-plan.

Our partner CAF bank has also produced a Top 10 changes article about the practical implications for your charity. https://www.cafonline.org/about-us/blog-home/the-charities-act-2022-what-are-the-practical-implications-for-your-charity

And Bates Wells has produced this article highlighting the changes and what you should be doing in preparation: https://bateswells.co.uk/updates/charities-act-2022-when-will-the-new-provisions-come-into-force-and-what-should-you-be-doing-in-preparation/#:~:text=The%20range%20of%20helpful%20provisions,into%20force%20in%20Autumn%202023.