First provisions from Charities Act 2022 comes into force
On 31 October 2022 the first phase of changes introduced by the Charities Act 2022 have come into force.
The specific changes that have come into force are:
- Royal Charter charities now have the ability to use a new statutory power to amend their governing document.
- A change which simplifies the process to follow where a charity amends its governing document by parliamentary scheme under s73 of the Charities Act 2011.
- Streamlining of the rules regarding cy-près powers, which now allow a charity to treat a donation as having failed, and retain the funds, in a wider range of circumstances.
- An amendment which confirms that the Charity Commission can make a scheme in relation to a charitable company as well as in relation to a charitable trust.
- The statutory power under the Charities Act 2011 to allow trustees to be remunerated for providing services to the charity is extended to also cover goods that are not provided in connection with a service.
- Trust corporation status is now automatically conferred on all existing and new corporate trustees however they are appointed, so it is no longer necessary to have the Charity Commission make the appointment by scheme.
- The Charity Tribunal now has the power to make "authorised costs orders", which can authorise payments out of charity funds for proposed Tribunal proceedings (rather than only being authorised after the event).
- An update to provisions relating to the giving of public notice by the Charity Commission of certain consents and orders made under the Charities Act 2022.
Phases 2 and 3 are expected to come into force in Spring 2023 and Autumn 2023.
For further details about the full range of changes being introduced please read our essential guide to the Charities Act 2022 available here.