On 29 March 2019, the Charity Commission published its long-anticipated new guidance on “Charities with a connection to a non-charity”, following its publication of draft guidance in February of last year.
The guidance is extremely wide in scope, meaning that it will apply to a wide range of charities and non-charities, including:
- Charities with trading subsidiaries
- Corporate foundations
- Charities associated with campaigning organisations
- Charities established by government or local authorities
- Charities which regularly fund, or receive funding from, a non-charity
- Charities which work regularly with a non-charity “to deliver services, campaigns or other projects”
- Charities which have a non-charity as a trustee or “a sole or significant member”, or where a non-charity has rights to appoint trustees.
Bates Wells was heavily involved in the Charity Commission’s consultation on the draft guidance, raising extensive concerns along with others in the sector about its scope, tone and content.
To its credit, the Commission has taken on board many of those concerns. However, there remain areas which could be improved – you may already have seen our recent blogpost, setting out some key takeaways from the new guidance, and some of our concerns.