Overview

The Charities Bill [HL] is a consolidation bill aiming to bring together all existing laws related to charities in England and Wales into a single, updated piece of legislation. It simplifies and clarifies the existing legal framework, making it easier for charities and regulators to understand and follow the rules.

Description

The bill covers a wide range of aspects of charity law, including:

• Definition of "charity": Clarifies what constitutes a charity, emphasizing charitable purposes and High Court oversight.
• Charitable purposes: Lists specific charitable purposes (e.g., poverty relief, education, religion) and introduces a "public benefit requirement".
• Charity Commission: Defines the Commission's objectives, functions, and duties, including regulating charities, investigating misconduct, and providing guidance.
• Exempt charities: Specifies charities exempt from certain registration and regulatory requirements and defines the role of their principal regulator.
• Charity registration: Sets out the rules for registering charities, including which charities must register and the procedures for registration and removal from the register.
• Information powers: Grants the Commission powers to gather information, conduct inquiries, and issue search warrants in cases of suspected misconduct or mismanagement.
• Cy-près powers: Deals with the power to change the purpose of a charitable gift if the original purpose is no longer achievable.
• Charity Commission's supervisory powers: Details the Commission's powers to intervene in the management of a charity if necessary, including suspending or removing trustees, and appointing interim managers.
• Charity accounts and reporting: Establishes requirements for charity accounting records, statements of accounts, annual reports, and annual returns. It sets financial thresholds which determine the level of auditing or examination needed.
• Charity trustees: Outlines rules regarding the eligibility and disqualification of charity trustees, their remuneration, and indemnity insurance.
• Charitable companies: Addresses specific regulations for charities that are also companies, including disclosure requirements and restrictions on altering objects.
• Charitable Incorporated Organisations (CIOs): Establishes a new legal structure for charities (CIOs), setting out rules for their formation, operation, and governance.
• Unincorporated charities: Provides procedures for unincorporated charities to transfer their assets or alter their purposes and powers.
• Local charities: Deals with the role of local authorities in supporting and monitoring local charities.
• Charity mergers: Sets out the rules for merging charities.
• The Tribunal: Establishes the process for appeals and references relating to decisions made by the Charity Commission.

Government Spending

The bill doesn't directly specify changes to government spending. However, the increased regulatory oversight and administrative functions of the Charity Commission could potentially lead to changes in its budget. The exact financial implications are not detailed within the provided text.

Groups Affected

• Charities: The bill will significantly impact all charities in England and Wales, requiring compliance with updated regulations on registration, accounts, reporting, and governance.
• Charity Trustees: Trustees will bear increased responsibilities in adhering to the bill's requirements, including enhanced duties of care and potentially facing disqualification.
• Donors: The bill aims to increase public trust in charities, potentially influencing donor behavior.
• Beneficiaries: The bill's focus on public benefit should ensure charities better serve their beneficiaries.
• Charity Commission: The Commission will have increased responsibilities in regulating and overseeing charities.
• Courts: Courts will maintain jurisdiction over certain charity matters, as specified in the bill.
• The Tribunal: The Tribunal will handle appeals and references related to Commission decisions.
• Government Departments: The bill may influence the functions and responsibilities of other government departments in relation to charities.

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