Bates Wells Briefing for Charities & Social Enterprises | 24 May 2018

Bates Wells highlights

Charities, Social Enterprise

Bates Wells has responded to the Charity Commission’s consultation on new draft guidance for charities “connected with” non-charities. See today’s Briefing for details.

The Bates Wells Briefing will take a break next week and return the week beginning 4th June.

At a glance

The Charity Commission’s guidance on automatic disqualification has been amended to include two declarations, one for trustees and one for senior managers.

NCVO has made available a Legal checklist for boards of charities and other voluntary organisations.

The Department for Education has published its response to the recent Keeping Children Safe in Education (KCSIE) consultation.

The European Commission has published “Guidance on innovation procurement”.

A House of Lords committee has been appointed to conduct a review of the Bribery Act.

Charity Commission

Director of Legal Services appointment

Aarti Thakor (a CC legal adviser since 2008) has been announced as the Commission’s new Director of Legal Services.

New declaration forms

The Commission’s guidance on automatic disqualification has been amended to include two declarations, one for trustees and one for senior managers, see under the heading “Preparing for the rule changes”, subheading “Recruitment”. The declarations are to be used in addition to (not instead of) the existing basic trustee declaration of eligibility.

Joint Committee on Human Rights report into Freedom of Speech in Universities

The Commission has published its response to the report of the Joint Committee on Human Rights into Freedom of Speech in Universities (see also this press release), The Commission says that it agrees that freedom of speech should form part of students’ unions’ and Higher Education Institute’s activities in carrying out their educational charitable purposes but, as the Joint Committee has acknowledged, freedom of speech is not absolute and must be within the limits of the law.

Safer giving

The Commission has updated its advice on safer giving to charities this Ramadan, to include a quote from the Mayor of London.

Consultation on guidance for charities connected with non-charities

BWB has filed a response to the Commission’s consultation on this proposed new guidance.
This Civil Society Media article summarises responses from other sector bodies, many of whom raised similar issues to those in the BWB response.

Independence of the Commission

DSC has published a “toolkit” for testing the independence of the Commission. The toolkit describes “The Three Pillars of Independence” as:

  • Independent of Party Politics
  • Independent of Populism
  • Independent of the Press


NCVO has made available a “Legal checklist for boards of charities and other voluntary organisations”. It includes links to Get Legal documents.

Governance/ethical issues

New Philanthropy Capital has published “Diversity in governance: the what, why and how”.

Tax and VAT

Charity Tax Group has published the slides from its 2018 Conference. Presentations include updates from HMRC on Making Tax Digital, a review of business rates developments and a debate on the future of Gift Aid and other giving incentives. CTG also notified members of its plans to commission an economic research project assessing the implications of different potential VAT scenarios post-Brexit.

CTG has also published its “Annual Review 2017/18 – Making Charity Tax Digital”.


Civil Society Media reports that at a DCMS consultation event last week relating to the Government’s Civil Society Strategy, Matt Hancock said:

  • the government is looking at various ways of making charities more sustainable, including a move back towards grants. “Tracey [Crouch] and her team are looking closely at whether we can deliver a new era of public sector grants – Grants 2.0, let us call them – without sacrificing the efficiency and focus on outcomes that contracts are designed to achieve”.
  • the government is “investing in a great expansion of social impact bonds, and also exploring how to ensure the Social Value Act delivers on its revolutionary promise, which has not nearly been met yet”. He added that he believes in payment-by-results and commissioning models but that they are not the answer to everything.
  • he wants to make business more responsible and wants to support “growing calls for people to have more power to direct their investments to support good causes”.

See here for Matt Hancock’s full speech.


See this Bond article “Safeguarding: giving evidence to the IDC and going forward”.

Data protection

ICO fines

The ICO have served SCL Elections Ltd with a legal notice ordering it to give Professor David Carroll (an academic in the US) all the personal information the company holds about him. Professor Carroll wrote to SCL Elections to request his personal data, but was unsatisfied with their response and complained to the ICO. The Company refused to address the ICO’s subsequent questions and contested that he had a legal right to the personal information. The ICO subsequently provided the Company with a legal notice to provide Professor Carroll with his personal data that they have processed.

The Crown Prosecution Service (CPS) has been fined £325,000 by the ICO for losing unencrypted DVDs containing recordings of police interviews. The CPS lost DVDs that contained sensitive evidence from victims of child abuse – the ICO found that it was a serious contravention and that the CPS had not taken appropriate technical and organisational measures against unlawful processing of personal data and accidental loss of it.



At the Institute of Legacy Management’s Annual Conference 2018, Bates Wells Braithwaite presented on a wide range of legal topics. We gave an overview of key GDPR considerations, highlighted learnings from recent cases, considered the implications of turning down a gift, discussed executor costs and communications and took a look at property gifts. See here for a selection of questions from the audience on the day, with our answers.


The Department for Education has published an updated version of its Guide to new alternative provision free school revenue funding: 2018 to 2019.

The Department for Education has published its response to the recent Keeping Children Safe in Education (KCSIE) consultation. Alongside the response is revised KCSIE for information. This is to allow schools and colleges time to consider any changes they might want to make to policy and procedure before the revised guidance comes into force on 3 September 2018. Up until 3 September, schools and colleges must continue to have regard to KCSIE 2016. The KCSIE consultation provided respondents an opportunity to comment on the effectiveness of the child on child sexual violence and sexual harassment advice. The advice has been strengthened and is available to support schools and colleges.

Social finance

See under General above.

A panel of 12 charity and social enterprise leaders have come together to form the Social Investment Intelligence Network. This initiative is funded by the Connect Fund and co-ordinated by Social Spider CIC, and Dan Gregory at Common Capital. The panel meets on a quarterly basis and publish a report based on their discussions with the intention of enabling market participators to better understand investees’ view of the market. The first report can be read here.

Writing for Pioneers Post, Nick Temple (CEO, Social Investment Business), reflects on the social investment journey. He provides a summary of the journey thus far and lists a number of challenges which the sector is in the process of overcoming. Finally, he ends with a list of reasons to be cheerful.

£28 million of funding has been awarded by the government to 10 new social impact bond schemes. This is the second tranche of the government’s £80m Life Chances Fund. Recipients include Sheffield City Council, Harrow Council, and the Innovation Unit in Doncaster. See here to view the government’s press release and a full list of the successful schemes.

Sadiq Khan, Mayor of London, has created a £45 million fund to help London’s children and young adults to fulfil their potential by tackling causes of youth violence and knife crime. Applications are open to projects embedded in their local communities and must be submitted by 12 noon on Monday, 9 July 2018.

Writing for Big Society Capital’s blog, James Burton, Sam Hilditch, Sandra Phillips and Joanna Tam from the Said Business School, University of Oxford, analyse social investment models to address domestic violence in the UK. The funding models they consider include the CSR Model, the SIB Model and the Social Enterprise Model.


The Government has announced an investment of £2.7 million to bring communities together through volunteering.


The European Commission has published Guidance on Innovation Procurement. The guidance (which is not legally binding) is intended to present the fundamental aspects of innovation public procurement and to facilitate higher quality and more efficient solutions that value environmental and social benefits, better cost-effectiveness and new business opportunities for enterprises. Innovation procurement is defined as any procurement that includes one or both of research and development services and buying the outcomes of innovation created by others. The guidance also addresses:

  • The policy framework that is necessary to make strategic use of innovation procurement.
  • How to open the doors of public procurement to innovators, including start-ups and innovative SMEs.
  • How to utilise public procurement procedures to modernize public services with innovative solutions and to create growth and jobs.

New regulation of social media

The Government has announced it will introduce new online safety laws to “make sure the UK is the safest place in the world to be online”. It plans to work collaboratively with tech companies, children’s charities and other stakeholders to develop the detail of the new legislation which might include introducing a code of practice underwritten by legislation.

Bribery Act

A House of Lords committee has been appointed to conduct a review of the Bribery Act.


This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.

All content on this page is correct as of May 24, 2018.