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Charity powers expanding this autumn

The Charity Commission has announced key financial governance changes coming into effect this year.

The changes, which will start from autumn and continue to roll out until next year, will change how charities sell, lease or transfer land, while giving greater flexibility on the use of permanent endowments.

The changes will also affect how charities amend their governing documents.

Charity trustees can currently receive requests to make a moral payment from their charity's funds or property, or to waive their right to receive funds or property.

However, from this autumn, charities will be able to process requests for small amounts without applying to the Charity Commission, based on factors such as annual gross income and the amount of the requests.

For instance, charities with a gross income between £0 to £25,000 will be allowed to make individual payments of £1,000 without Commission authority, while those with over £1 million in gross income can make payments of up to £20,000.

The Charities Act 2022 will also allow trustees to delegate the decision-making for moral payments to other individuals or groups within a charity, such as the chief executive or a trustee sub-committee.

There will also be changes to the rules on fundraising appeals that do not reach or exceed targets set by a charity, including a faster refund process and less Commission oversight on how extra funds up to £1,000 can be spent.

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