Key Facts

• Clause 1 changes the definition of a “regulated alteration” for charities.
• Clause 1 removes the requirement to obtain Charity Commission consent for changing wording if the overall meaning remains unchanged.
• Clause 2 aligns the process for charitable incorporated organisations (CIOs) with that of charitable companies regarding governing document amendments.
• Clause 3 introduces a new power in section 280A of the Charities Act 2011.
• Clause 4 allows charities established by royal charter to amend their documents more easily with approval from Her Majesty by Order in Council.
• Clauses 6 and 7 expand circumstances for using funds from failed fundraising appeals for similar purposes, requiring Charity Commission approval for amounts over £1,000.
• Clause 9 sets a clearer definition of 'permanent endowment', raising the release threshold to £25,000 without Charity Commission consent.
• Clauses 10 to 13 provide trustees with more options to use permanent endowments including borrowing and social investments.
• Clauses 17-24 are agreed upon.
• Clause 15 allows charities to make minor payments under moral obligation without seeking prior approval from the Charity Commission if below a specified threshold.
• Clause 18 removes redundant provisions related to the Universities and College Estates Act 1925.
• Clauses 19 and 20 allow trustees more flexibility in choosing advisers for land disposals and expanding the range of advisors charities can call upon.
• Clause 22 allows charities to grant short-term residential tenancies to employees without Charity Commission consent.
• Clause 25 extends the Charity Commission’s power to direct charity name changes to cover working names.
• Comic Relief is an example of a charity known by a different working name.
• Clauses 26 and 27 allow for delays in registering or changing a charity's name on the register.
• Clause 28 ensures that exempt charities can also be directed to change their names.
• Clause 30 addresses the anomaly of trustee remuneration for goods alone.
• Clause 31 gives the Charity Commission power to authorize payments to trustees for completed work.
• Clause 32 confers trust corporation status on charitable trust trustees automatically.
• Clause 33 enables gifts to go to a merged charity rather than maintaining a shell charity.
• Clause 34 changes the types of property excluded from transfer during mergers.
• Clause 35 ensures language consistency with the new definition of 'permanent endowment'.
• Clause 36 allows the charity tribunal to make authorised costs orders.
• Clause 37 extends the Charity Commission’s discretionary power for giving public notice under the Charities Act 2011.
• Clauses 38 and 39 remove outdated language from the definition of a connected person, allowing future amendments through secondary legislation.
• Clause 40 gives effect to schedule 2 with minor and consequential amendments.
• Amendment 1 removes a privilege amendment inserted in the Lords.
• The Bill will come into force on the day it is passed; other provisions will be implemented based on regulations by statutory instrument.