Our weekly round up of news and updates from across the sector.

To help you navigate this week’s content, the links below will take you straight to content by topic.

Charity Commission

Updated guidance on charities paying a trustee or a connected person (CC11)

The Charity Commission has redesigned its guidance on charities paying trustees or connected people. In its press release, it says that the goal is to “make it clearer, easier to use and to help trustees navigate the law”, that the “underlying rules on trustee payments have not changed”, and that the guidance contains a “continued emphasis on the principle of voluntary service”. The guidance has also been split out into categories, with separate documents covering the following scenarios:

  • Paying a trustee or a connected person for providing goods or services to the charity;
  • Employing a trustee or connected person;
  • Paying a trustee for carrying out trustee duties;
  • Compensating a trustee for loss of earnings; and
  • Other types of trustee payments.

The Commission has also separated out guidance on paying trustee expenses.

Bates Wells Partner Simon Steeden has shared comments on the refreshed guidance, noting that “It’s great to see the Commission review its core guidance and strive to ensure that it’s as accessible and user-friendly as possible. But there’s always a difficult balance to be struck in ensuring that it remains clear, accurate and as supportive as possible in helping trustees navigate some of the most common dilemmas”. He also highlighted that “Helpfully, the previous version of CC11 had a specific section covering the question “Can charities offer trustee benefits to help improve the diversity of their boards?” which noted that the Commission “supports the view that people should not be excluded from trusteeship because of their economic circumstances. Not every trustee will always be able to give their time freely, and the Commission accepts that in some cases, particularly where loss of earnings will cause hardship, an element of financial compensation might be justified.” The new guidance provided an opportunity for more practical clarity in this area – but instead this section is omitted entirely, with no reference to diversity considerations across the new guidance.”

Cyber security resources

Along with other updates we’ve previously reported on, the Charity Commission’s April edition of Charity Connection includes cyber security statistics, training and resources relevant to charities.

New Commission board members

Tasnim Khalid and Alan Mather have been appointed as Charity Commission Board Members for a 3 year term ending on 22 April 2028.

See ‘Investigations and complaints’ below.

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Investigations and complaints

The Charity Commission has published the report from its statutory class inquiry into Education for Gondar and three formerly registered charities Education in Sidama, Education for Nyanza and Education in Western Province, Kenya. These four charities were linked to a company with a sole member and director (Richard Gary Lorrison), who was also a trustee of Education for Gondar. After originally opening compliance cases into each charity, the Commission found they had all failed to meet accounting requirements and escalated this to a statutory class inquiry. After discovering that £270,717.69 was transferred from two of the charities to Mr Lorrison’s personal account, the Commission concluded that he misappropriated Gift Aid payments and that he set up the charities in order to personally benefit from them. Mr Lorrison was removed as a trustee under a statutory provision which also has the effect of disqualifying him from being a trustee of any charity. The Commission also exercised its powers to dissolve three of the charities and remove them from the charity register. The fourth charity, Education for Gondar, is in the process of being dissolved.

The Charity Commission has opened a statutory inquiry into The Muslim Community Centre and Mosque 1977 (an unregistered charity). The Commission’s concerns focus on a risk to charity property in relation to a dispute with Dudley Central Mosque and Muslim Community Centre (a registered charity which is subject to its own ongoing statutory inquiry).

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Tax and VAT

Thanks to Charity Tax Group for flagging that HMRC is taking action to stop a scheme which boosts input VAT recovery for care providers who are regulated by the Care Quality Commission. Details of the proposed HMRC action are set out in Revenue and Customs Brief 2 (2025) published last week.

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Funders and funding

The Cranfield Trust has published a new report, Championing small charities: Our national asset. Key recommendations include a call for funders to provide multi-year unrestricted funding to help charities plan ahead.

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Banking

HM Treasury has announced new rules that will require banks and other payment service providers to give customers at least 90 days’ notice before closing their bank account or terminating a payment service, and to provide a clear explanation in writing. The new rules are expected to come into force in April 2026, and they are designed to make it easier for customers to challenge decisions or find new banking services.

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Equity, equality, diversity and inclusion

Pro Bono Economics and Rosa have published results from a survey they carried out to understand the challenges facing charities and community interest companies run by and for women and girls. They found these organisations “face considerable pressures, often disproportionately so, compared with the wider charity sector” and 44% of those surveyed predicted they may not be able to meet future demand.

See ‘Scotland’ below.

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Climate change and environment

See ‘Scotland’ and ‘Social investment/social impact investment’ below.

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Fundraising

The Fundraising Regulator (FR) has published a new Code of Fundraising Practice, along with code support guides on ‘Documenting your fundraising decisions’, ‘Due diligence and fundraising’, and ‘Monitoring your fundraising partners’, all of which will be effective from 1 November 2025. The FR has also shared additional guidance on ‘Engaging with the Fundraising Regulator’. This blog from Suzanne McCarthy summarises how the new Code has been created, and how it will take a more principles-based approach. It is 45% shorter than the previous version, and the code support guides are designed to help organisations understand how to meet the Code’s standards. There will now be a six-month transition period for fundraising organisations to update their processes and train their staff and volunteers in preparation for the incoming Code. Civil Society has also shared an article summarising some of the key changes.

Bates Wells Partner Hannah Lyons has commented: “This is a big day for charity fundraising! After years of consultation and drafting, it is great to see the new Code published. The shorter, more streamlined format will be welcomed by many, but we will have to see if the move to a principles-based approach with relevant sign-posting creates challenges in compliance, especially for smaller charities with less resource.”

If you would like more information about the new Code, Bates Wells and the Chartered Institute of Fundraising will be holding a joint webinar on 3 June. Sign up here.

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Safeguarding

Ofcom has now published its final child safety measures under the Online Safety Act 2023, The Protection of Children Codes and Guidance. The measures within the codes are intended to be a “reset for children” and bring about “a safer generation of children online”. If your organisation hosts online forums or other communities where users can interact online, you may need to take action under these new codes. Read our latest briefing from Bates Wells Senior Associate Louise Sivey, Solicitor Natasha Davies, and Trainee Solicitor Emily Wilson to explore the safety measures Ofcom require in-scope services to take to protect children online.

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Volunteering

A report from nfpResearch has found that, since 2010, volunteering rates have been growing for people under 35 and falling for people over 35 (particularly during the Covid-19 pandemic). The report considers how to promote volunteering, such as using different marketing strategies for different volunteer audiences and creating a volunteering infrastructure body.

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AI

New Philanthropy Capital has published a blog about what charity trustees need to know about AI.

The Department of Health and Social Care (DHSC) has published an update about the use of AI in hospitals to improve patient care. Interim trial data has found that AI use has reduced admin so that “more people could be seen in A&E, clinicians could spend more time during an appointment focusing on the patient, and appointments were shorter”. To encourage the use of AI in health and care settings, DHSC has also announced new guidance on the use of AI-enabled ambient scribing products.

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Commercial law

In the case of HNW Lending Ltd v Lawrence [2025] EWHC 908 (Ch), the High Court has determined that a third party can enforce a contract term under the Contracts (Rights of Third Parties) Act 1999 where it is expressly given this right under a contract (even if the term does not confer a benefit on the third party). This was in the context of a loan agreement where a lender was acting by its security agent, HNW. HNW was not a party to the agreement and did not receive any benefit under it. The judge held that the agreement had the intention of conferring on HNW “equivalent rights to those of the lender, enabling HNW to enforce obligations owed to and benefitting the lender.”

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Scotland

As part of the Everyone’s Environment project, New Philanthropy Capital and the Environmental Rights Centre for Scotland have published a position statement with recommendations about how Scottish environmental policy can better reflect the needs of marginalised and disadvantaged groups.

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Health and social care

The government has begun a 12-week call for evidence to feed into a men’s health strategy for England. The aim is to gather insights from the public, health and social care professionals, academics and employers so the government can properly consider how to prevent and tackle the biggest issues facing men.

The Department of Health and Social Care has shared an update about the reform of the NHS App, with the latest data showing that the app rollout has stopped 1.5 million hospital appointments from being missed.

See above under ‘Tax and VAT’ and ‘AI’.

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Social enterprise

The Pioneers Post / NatWest SE100 Index & Social Business Awards 2025 are now open to applications.

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Social investment/social impact investment

Better Society Capital (BSC) has announced that, during its lifetime so far, over 3,750 UK charities and social enterprises have been supported through £1 billion of investment from BSC and £2.9 billion in co-investment from others. BSC calculates that this has made nearly £4 billion available to UK organisations tackling social issues such as housing, employment, education, health, and financial inclusion. The press release also reflects on three key aspects of BSC’s work and its focus for the next stage of its mission.

UK impact investor British International Investment (BII) and Boston Consulting Group have released a report on scaling blended finance, which provides a practical toolkit designed to help strengthen the design, assessment, and mobilisation of blended finance funds (see also report landing page and press release). The toolkit, which includes a typology of fund archetypes and a scorecard, is designed for asset managers, investors, and donors and other providers of concessional capital.

For more from BII, Srini Nagarajan, MD and Head of Asia, describes the approach BII took in founding Ayana Renewable Power in 2018, an investment vehicle focusing on low-income states in India, to develop the renewable energy market. Nagarajan describes the founding of this “platform business” as a radical approach to investment in international development at the time, prompted by BII not finding suitable investment opportunities in existing businesses.

UK social impact investor Resonance has announced that it is committing £800k to Big Solar Co-op, a UK-based not-for-profit organisation, to fund the installation of rooftop solar panels across the UK. The investment, backed by the social investment fund Resonance Community Developers, is aimed at “reducing carbon emissions by working towards a goal of 100MW of solar panels on commercial and community buildings by 2030”.

Should we be spending $30M to distribute $3M? Dr Nadait Gebremedhen, from US-based non-profit Hagush, and Gannon Gillespie, a strategic advisor to social change organizations, wrote for Alliance magazine to outline the significant effort invested by social sector organisations in applying for grant funding. The authors estimate that this adds up to a significant cost to the sector, relative to the amount of grant funding available for successful applicants. The authors suggest that a systemic framing of the issue (rather than this being seen as an individual applicant problem) can help with identifying solutions.

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Sport

Bates Wells Senior Associates Ben Thomas and Helen Fry have shared an update about the Football Governance Bill (which will introduce an Independent Football Regulator to oversee the licensing of clubs in the top five tiers of the men’s game). The Bill has received its first reading in the House of Commons, having passed through the House of Lords with its key provisions intact.

The Department for Culture, Media and Sport (DCMS) has announced that David Kogan OBE is the Government’s preferred candidate for the Independent Football Regulator Chair. He will appear for pre-appointment scrutiny before MPs on the Culture, Media and Sport Select Committee.

DCMS has published a speech from Minister for Sport, Media, Civil Society and Youth Stephanie Peacock at the recent Women and Girls in Sport Conference, where she summarised the government’s strategy for women and girls’ sport.

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International development

Bates Wells Partners Suhan Rajkumar, Stephanie Biden, Lawrence Simanowitz, Augustus Della-Porta, and Luke Fletcher have published an update about how we can support US non-profits in the face of increasing concerns about the regulatory landscape in the US. Our team is happy to have an initial free conversation with you to help you explore your options.

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Education

Schools

The Department for Education has shared an update about the Children’s Wellbeing and Schools Bill (which is proceeding through the House of Lords this week). They have estimated that new provisions to lower the cost of uniforms (by limiting the number of branded items schools can require) will save some parents £50 per year.

Tes Magazine has published an article considering the impact that nationwide inconsistencies between local authority safeguarding processes have on designated safeguarding leads in schools. The article identifies key discrepancies in relation to referral mechanisms and terminology between different local authorities, and it calls for processes to be streamlined and standardised.

Thousands of school children from over 750 schools in the UK and Ukraine have applied to be part of a 100 Year Partnership between the two countries.

Higher Education

Universities UK, the representative body for 141 universities, has announced an action plan to increase access to higher education for the most disadvantaged in society. The action plan consists of four key actions to unlock potential through contextual admissions, collaborate in cold spots to raise aspirations, set students up with adequate maintenance packages, and create career ready graduates. Regarding the first action on contextual admissions, Universities UK, the Universities and College Admissions Service and the Sutton Trust will undertake “a joint project to improve the consistency and transparency of contextual admissions in England”.

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Disclaimer – The information contained in this update is not intended to be a comprehensive update – it is our selection of the website announcements made in the week up to last Friday which we think will be of interest to charities and social enterprises. The views expressed in items we’ve included are the views of the named authors/sources, and should not be taken to be the views of Bates Wells, its partners or employees. The content in this update is necessarily of a general nature – specific advice should always be sought for specific situations.