Law Commission starts review of Charity Law

The Law Commission has begun a review into aspects of the legal framework which charities operate in. It is thought the project will take until March next year to complete, and the commission will then publish a consultation paper.

The commission released a statement saying the issues surrounding laws charities adhere to will be examined, and reform recommendations made, Third Sector reported. One aspect of the review will look at charities structured as charitable corporations by royal charter or by statute, while the remainder will consist of issues brought from Lord Hodgson’s review of the Charities Act 2006.

Overall, 113 recommendations were made in the review, which was completed in 2013. They included the withdrawal of Gift Aid for the late filing of accounts, and allowing organisations with an income exceeding £1 million to pay trustees without securing the consent of the regulator.

Last year, the Law Commission’s review was delayed because the government had asked work on the Electronic Communications Code was prioritised instead. It is expected that if the review proceeds to a final report with a draft bill, it will be published in March 2016. IBB’s Charities team, said:

“The Law Commission is currently in the process of agreeing its terms of reference with the Cabinet Office.

“It is expected that they will include some of the recommendations contained in Lord Hodgson’s review but we will have a much clearer idea of the scope of the review once the terms of reference have been agreed and published in the next few weeks. “We will keep a watching brief on the progress of the Law Commission’s work and the scope of any changes that may follow.”

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team here, call 01895 207809 or email charities@ibblaw.co.uk.