MHA | Charities Act 2022 - What should charities expect from the June…

Charities Act 2022 - What should charities expect from the June 2023 implementation phase?

Posted on: June 13th 2023 · read

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The article below has been produced by Charity Law experts BDB Pitmans.

The second phase of implementation of the Charities Act 2022 (Phase 2) is due to be brought in in June 2023. As for other parts of the Act, the changes are aimed at reducing unnecessary bureaucracy, often using the analogy of removing barnacles from a boat, to help charities save costs and operate more efficiently but with appropriate oversight.

Phase 2 aims to drive changes in 3 main areas:

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Permanent endowment - a revised definition as well as new or amended powers;
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Charity land - some clarification and relaxations in the regime applying to disposals and mortgaging; and
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Charity names and working names - some new or revised powers for the Charity Commission

Below we outline in detail the 3 main changes that will Phase 2 will bring:

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Next Steps 

At the same time as the Phase 2 changes are brought in, we can expect the Charity Commission to publish new and/ or updated guidance. That guidance should help charity trustees (and their advisers) negotiate the changes and understand what to expect from the Commission in the use of its new or amended powers under the 2011 Act.

Looking further ahead, a third phase of implementation is expected by the end of 2023. As noted above, it should include further changes to the land disposals and mortgages regime, but is also intended to bring in other provisions, including changes to the powers and processes relating to amending charity constitutions.

In the meantime, charities wishing to make use of the new and updated provisions in Phase 2 should look out for the announcement of implementation in June and start planning now for the new opportunities on offer.

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