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Charity Act 2022: commission publishes guidance for first tranche of changes
[THE CHARITY COMMISSION has published its guidance on the Charities Act 2022 and the changes it makes to the 2011 Act. An overview of the new Act can be found at www.gov.uk/guidance/charities-act-2022implementation-plan.
The changes come into effect in stages, beginning this autumn; and the commission has also published short summaries of the changes planned to come into force this autumn. They are:
Charities already have a statutory power that they can use, in certain circumstances, to pay trustees for providing a service to the charity beyond usual trustee duties, or goods connected to that service.
That statutory power is being changed by the Charities Act 2022. As a result, charities will be able to pay trustees in certain circumstances for just providing goods to the charity.
So, using the statutory power, trustees could be paid for: • Services only – for example estate agency or computer • consultancy • Services and associated goods – for example plumbing or • painting services and any associated materials such as • plumbing parts or paint • Goods only – for example supplying stationery to the charity
Making moral or ex gratia payments from charity funds
Sometimes, charity trustees receive a request to make a moral, or ex gratia, payment from their charity’s funds or property, or to waive their right to receive funds or property. That most frequently occurs when a charity receives a legacy and there is evidence that the donor had changed their mind since making their will.
The Charities Act 2022 will introduce new powers which will enable: • Charities, where trustees could reasonably be regarded as • being under a moral obligation, to process requests for ‘small’ • amounts without applying to the commission, based on factors • like annual gross income and the amount of the request (see • table below) • Trustees to delegate the decision-making for ex gratia • payments to other individuals or groups within the charity, for • example the chief executive or a trustee sub-committee
Those powers will also be available to Royal Charter and statutory charities.
If the payment exceeds the amount set out in the table the charity must continue to apply to the commission for authority to be able to proceed.
Charity’s gross income in its last financial year
£0 to £25,000 £25,001 to £250,000 £250,001 to £1m Over £1m
Maximum individual payment amount allowed without Commission authority
£1,000 £2,500 £10,000 £20,000
Fundraising appeals that do not raise enough or raise too much
Sometimes, appeals do not raise the amount needed to deliver the aim wanted, or raise too much so that there are funds left over; or circumstances may change and the charity cannot use the donations as they intended.
The Charities Act 2022 will reduce complexity surrounding what trustees need to do in these situations. For example: • The current requirement in some circumstances for charities to wait • six months for donors to ask for a refund will no longer apply • There will be a simpler process for obtaining the commission’s • authority: that will replace the need for the commission to make a • scheme • If the donations that can be spent on new purposes – different to the • purposes they were raised for – are less than £1,000, trustees can • act without the commission’s involvement if they comply with the • new legal requirements
Power to amend Royal Charters
Charities will be able to use a new statutory power to change sections in their Royal Charter which they cannot currently change, if that change is approved by the Privy Council.
Other changes planned to come into effect in autumn 2022
The Act will: • Confirm that the commission’s scheme-making powers include • making schemes for charitable companies • Confer trust corporation status automatically to existing and future • corporate charities in respect of any charitable trust of which the • corporation is, or in the future becomes, a trustee • Update provisions relating to giving public notice to written consents • and orders of the Charity Commission under various sections of the • Charities Act 2011 • Mean that when a charity changes its governing document by • Parliamentary scheme, under section 73 of the Charities Act • 2011, the scheme will by default always be under a lighter touch • Parliamentary process – known as the negative Parliamentary • procedure.
The Charity Commission will be publishing similar summaries for the other parts of the Act as they come into effect up to autumn next year. q 25 25
Summer school develops the ecologists of the future
[THE WORLD is facing huge environmental challenges: from climate change to plastics in our oceans. We need a new generation of ecological scientists to search for the solutions; however, getting a start in ecology is not easy, particularly if you are from a low-income background. Thankfully, the British Ecological Society (BES) – the world’s oldest ecological society – is doing something about it. Every summer BES takes 35 motivated young people from low-income backgrounds on their first residential ecology field course.
The Ecology – the Next Generation summer school lasts five days and the young people are taught by leading ecological scientists. Successful applicants pay nothing to attend and they learn vital skills to help them build a career in academia and the green economy. The leading academics and consultants who teach the young people provide their services pro bono.
Hard work – raised aspirations
“We take talented students from low-income and black and minority ethnic backgrounds and expose them to the relevance of ecology in our world and the breadth of opportunities and careers open to them,” explained Karen Devine, BES Director of Education and External Affairs.
“We help give them the support and mentoring they need to launch their career, including research or working as an ecological consultant, having never considered taking a degree in ecology or the natural sciences or understood the rewarding careers on offer after they graduate.”
The Ecology – the Next Generation summer school is not a holiday. A 6.00am start for bird watching is followed by a day spent out in the field and in the lab. A researcher might lead the group through an area of freshwater ecology, then Environment Agency staff will set a handson task about mapping flooding locations locally. The students will then make decisions on where to build houses and flood defences. Evenings are spent discussing all they have learnt: then out into the night – bat detector in hand.
Expertise from the experts – support from mentors
The young people get to work alongside experts who are world leaders in their field and with support from mentors who are from similar backgrounds. They spend time with ecologists who are passionate about what they do.
The young people then think: I could be that person! “That changes everything,” said Karen Devine.
Phoebe Whitehead, who is studying at Oxford University and is a mentor, added: “I just love it. I was the first person in my family to go to university. I had no idea what I wanted to do and made bad decisions at first. I took a gap year and changed it all round. The young people on the summer school liked this, hearing that you can take time to think and dedicate yourself to what you’re interested in.”
From council estate to director and ecology champion
“It’s inspirational, really,” said John Condron, MD of ecological consultancy Ecology Resources Ltd – which he founded with his wife Naomi. John grew up on an Inner London council estate and is now a sponsor of this year’s summer school. John and Naomi have provided a £2,500 bursary for one of the participants to invest in equipment, books and field courses.
John continued: “It’s great to see a lot of diversity at last. Ecology can be a very white, middle-class profession. From my visit I can see that the Ecology – the Next Generation summer school reaches out to young people who otherwise would not have the same access to support as some of their peers. That is very important: it can open up the eyes of kids to nature, ecology and wildlife.”
How you can help
Donations will help BES expand the Ecology – the Next Generation programme so that more talented young people from low-income backgrounds can study and make our world a better place.
All donations payable to British Ecological Society Ref: NextGen: BACS: Barclays Putney UK Sort Code 20-90-69. Acc. No. 70208736. SWIFT/BIC BUKB GB22. IBAN GB59 BUKB 2090 6970 2087 36 Cheque: British Ecological Society, 42 Wharf Road, London N1 7QS. Online: britishecologicalsociety.org/donate q • Founded in 1913 The British Ecological Society is a Registered Charity No 281283.
