Charities Act 2006 frequently asked questions

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	Charities Act 2006 What are the new rules on public benefit? Every charity must provide suitable public benefit by pursuing its charitable purposes. New applicants seeking charity registration must show that they will do so and existing charities must keep providing benefit. The benefit must be clear and relate to the charitable purposes. Benefit must be provided for each purpose stated in the charity's constitution. Charities must demonstrate and report on the benefit they provide. What does the Charity Commission expect us to do? Trustees should: Review their charity's constitution - our Healthcheck service can help Be up to date with the new rules - consider training options such as Jordans seminars or our Charity Trustee Training Toolkit and update reference materials Do the public benefit rules affect our accounts and annual trustees’ report? Yes. It is already good practice to use the annual trustees’ report to show clearly what benefit the charity provides. Trustees must include such material in their annual report for financial years beginning on or after 1 April 2008. Who checks what benefit we provide? The Charity Commission will monitor the annual reports and accounts of charities. They will also operate a “rolling review” programme, to check that all registered charities have charitable purposes and provide adequate benefit, under the new law introduced by the Charities Act 2006. In addition there will be random "spot checks" on charities. What rules will apply in Scotland? Any charity operating in Scotland must meet the "charity test". Providing public benefit as required by the Charities and Trustee Investment (Scotland) Act 2005 is part of that test. More How do the new charitable purposes affect us? The Charities Act lists 13 potentially charitable purposes in England and Wales. Every charity's constitution states that charity's purposes, which must be within the listed purposes. Trustees should: Review the charity's constitution - our Healthcheck service can help Arrange training for staff, trustees and key volunteers What do we need to do to deal with the Charities Act? Ensure charity trustees and staff receive training and can access up to date reference material. Consider whether your charity’s current constitution is “fit for purpose”. Review the constitution. Order a Healthcheck on the charity's governance arrangements. Jordans can assist. more

			Contacts
	Click contact name to email Cecile Gillard 0117 918 1319

			Charity News
	Public benefit guidance issued for charities The Charity Commission has issued its long awaited guidance on public benefit. Find out more Activation of the Charities Act 2006 (England and Wales). Find out more New rules on the assessment of public benefit. Find out more New charity law for Northen Ireland is expected during 2008. Find out more

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