Charity Matters February 2007

Welcome to the latest edition of Charity Matters in which we explain the key provisions of the long-awaited Charities Act 2006 (“the Act”) which finally became law in November 2006.

A provisional timetable for the implementation of the provisions contained in the Act has been published by the Cabinet Office. Parts of the Act will come into force early this year, and the remaining provisions will be implemented over the next two to three years.

The Act is designed to modernise, simplify and streamline certain areas of charity law and legislation.

The underlying purpose of the Act is to provide a modern framework to enable the voluntary sector to operate effectively whilst maintaining the levels of public accountability and confidence required to ensure that the sector continues to thrive.

In this edition of Charity Matters we examine:

• the new definition of “charity” and the public benefit test.
• the new incorporated legal form for charities, namely the Charitable Incorporated Organisation.
• the effect of the Act on excepted and exempt charities.
• changes in relation to trustee benefits;
• and other key changes introduced by the Act.