Following the lapse of the emergency measures introduced by the Corporate Insolvency and Governance Act 2020, the Charity Commission has issued updated guidance explaining their approach to charities who are experiencing difficulties holding face to face meetings as a result of the ongoing Coronavirus restrictions.

The Charity Commission recently concluded the National Trust did not breach charity law as a result of its regulatory compliance case involving the charity, and found there were no grounds for regulatory action.

The recent decision of the High Court not to uphold director disqualification proceedings brought by the Official Receiver against the former trustees and CEO of the Kids Company charity has reopened much debate within the charity sector.

Kids Company has made the headlines again following the judgment of Mrs Justice Falk in the action brought by the Official Receiver against the trustees of the charity under the Disqualification of Directors Act 1986.  It’s a long and detailed judgment which we will not review in this insight, but it has brought, again, into sharp focus the role of trustees within a charity or not for profit organisation and the essential need for good governance.

Tozers’ charities team has been fortunate to have co-hosted or attended several roundtable discussions among charity trustees and senior managers in recent weeks, where they have shared their experiences of what has been a hugely challenging last 12 months for the charity sector.

Charity trustees and senior management teams are needing to think imaginatively and boldly about how their charity will deliver for both their beneficiaries and service users as lockdown restrictions continue to impact their operational environment and ability to fundraise for the foreseeable future.

Long-term, the forecasts are that charitable gifts will continue to grow, from £2.9 billion in 2019 to around £3.5 billion in 2024.

Recent legislation has been introduced to relax corporate governance requirements, in the Corporate Insolvency and Governance Act 2020.

On 8th April, the Chancellor, Rishi Sunak, announced a financial support package specifically for charities, following weeks of campaigning by charity sector umbrella organisations such as NCVO, ACEVO, and Charity Finance Group, amongst others.

Many charities are in desperate need of alternative sources of funding to maintain vital services to beneficiaries whilst the coronavirus crisis continues.

Collaboration in the charity sector is nothing new. Many charities already collaborate successfully with a range of other organisations at many different levels, for example, in the delivery of contracted services, where commissioners often demand it.

Just before Christmas, with very little fanfare, the Charity Commission released new guidance on the responsibility of charity trustees to make Serious Incident Reports (‘SIRs’) to the Charity Commission where the incident involves one of the charity’s partners either in the UK or internationally.