Charity Finance Directors’ Group

Legal UpdateAnne-Marie PiperFarrer & Co LLP12 May 2011

In this session

• Charity Commission• Charities Act 2006• Public Benefit• Charity Tribunal• Finance Act 2010• Equality Act 2010• Bribery Act

Charity Commission

• New Chief Executive: Sam Younger• Funding for the Commission predicted to fall by 25-30%• Staff numbers have dropped by 30% since 2006• Drop in funding of 16% in real terms since 2006• Strategic review

• Consultation variation until 14 January 2011

• Completion/implementation from May 2011

Charities Act 2006

• Charitable Incorporated Organisations (CIOs) - Postponed• Public Charitable Collections – No progress• Statutory review of the Act due this year• Consolidation Act in the pipeline:

• Charities Act 2006

• Charities Act 1993

• Recreational Charities Act 1958

Public Benefit

• Charity Commission assessments:• Independent schools/care homes – review of those that failed

• Arts organisations

• Sports charities

• Private hospitals and healthcare charities – assessments scrapped

• ISC’s application for judicial review• Attorney General’s referral of questions relating to the guidance

on:-• Independent schools

• Benevolent funds

Charity Tribunal

• Only hears appeals against decisions of the Charity Commission• BUT only some decisions• Small number of cases to date• Pragmatic approach• Costs and the use of lawyers

Finance Act 2010

• Background• Taxes covered• Implementation• The new test for charity – it must:

• be established for charitable purposes only

• meet a “jurisdiction condition”

• meet a “registration condition”

• meet a “management condition”

Further reading – Finance Act 2010

• Farrer & Co briefings: www.farrer.co.uk

• HMRC guidance: http://www.hmrc.gov.uk/charities/guidance- notes/chapter2/fp-persons-test.htm

Equality Act 2010

• Background• Framework

• Protected characteristics • Activities within the scope of the Act• Direct and indirect discrimination• Exceptions

• What charities need to do• Review – objects, policies, projects• Training and information – trustees, staff and others• Consider – for future projects and activities

Further reading – Equality Act 2010• Farrer & Co briefings: www.farrer.co.uk• Equality and Human Rights Commission:

http://www.equalityhumanrights.com/legislative-framework/equality- bill/

• What equality law means for your voluntary and community sector organisation (including charities and religion or belief organisations)

• Charity Commission summary guidancehttp://www.charity-commission.gov.uk/library/equality act summary.pdf

• Further guidance expected in 2011

Bribery Act 2010• Background• In force 1 July 2011• 4 new offences

• active bribery (bribing another person)• passive bribery (being bribed)• bribery of a foreign public official• failure to prevent bribery

• Guidance issued by the Ministry of Justice• What this means for charities

• Review policies, procedures and contracts• Training• Charities operating overseas

Further reading – Bribery Act 2010

• Farrer & Co briefings: www.farrer.co.uk

• Ministry of Justice Guidance: www.justice.gov.uk/downloads/guidance/making-reviewing- law/bribery-act-2010-guidance.pdf