Charity Matters Spring 2008

This edition of Charity Matters will focus on an issue that is of great importance to charity trustees, namely the Public Benefit Guidance issued by the Charity Commission in January 2008. Also highlighted are a number of provisions contained in the Charities Act 2006 that the Office of the Third Sector has indicated are expected to be brought into force by the end of March 2008.

Public Benefit

Why has the Guidance been published?

The Charities Act 2006 (“the 2006 Act”) provides that a charitable purpose is a purpose that falls within the list set out in section 2(2) of the Act and which is for the public benefit.  The presumption that charities for the advancement of education, the relief of poverty or the advancement of religion are for the public benefit has been removed so that all charities will now need to be able to demonstrate that they meet the public benefit requirement.

The 2006 Act gives the Charity Commission (“the Commission”) a new public benefit objective “to promote awareness and understanding of the operation” of the public benefit requirement. The Commission is required to publish guidance in line with this objective and charity trustees are required to have regard to this guidance when exercising any powers or duties to which the guidance is relevant.

Draft guidance was published in February 2007 and was followed by a period of consultation ending in June 2007. Over 900 responses were received and as a result the Commission has made significant changes to the original draft guidance.
The provisions relating to the public benefit requirement are expected to be brought into force on 1 April 2008.