Government to legislate for changes to charity law

March 22, 2021

ILM is delighted to learn that the government has today published a policy paper which should see changes to charity law that we have been calling for since 2015.

The Department for Culture, Media and Sport (DCMS) has today published its response to the 2017 Law Commission report ‘Consultation on Technical Issues in Charity Law’ (click here to view the 2017 summary document). The response recommends that most of the findings of the original report be made law, including changes ILM asked for.

Specifically we called for:

  • Greater flexibility and reduced administrative burden in respect to Ex-Gratia Payments
  • Greater flexibility in respect to property sales.
  • Changes to the rules on mergers, reducing the need for shell charities.

From our conversation with DCMS, we understand that it hopes to implement the changes when Parliamentary time allows and that it will include our recommendations in full. We are particularly pleased that our recommendations about Ex-Gratia Payments will hopefully become law because this will considerably reduce the administrative burden on our members.

The recommendations have the support of the Charity Commission and have been developed in close consultation with the Charity Law Association. DCMS hopes that the new bill will reduce the administrative burden on charities and save them money, at a time when the sector is under pressure.

Although this process has taken several years, we are very grateful to both our members for their time and patience, and to the Law Commission for putting forward our recommendations. We believe that these changes will have a very positive impact on charities, saving them a great deal of time effort and money, and enabling them to focus on helping the worthy causes they represent.

You can view ILM’s submission, which was made following a survey of its members, here.

By Institute of Legacy Management


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