Whilst the Charities Act 2016 (the 'Act') received Royal
Assent on 16 March 2016, only two administrative provisions
(reviews of the operation of the Act and short title, extent and
commencement) came into force immediately; the other provisions are
being brought into force by commencement orders made by the
Minister. The Cabinet Office has now published an indicative
timetable for those commencement orders.
It is expected that the first order will be made in July and the
following provisions will come into effect:
Additional powers for the Charity Commission including extended
power to suspend trustees, power to remove disqualified trustees,
power to direct the winding up of a charity or that specified
action is not taken.
Reserve powers to control fundraising. These allow the minister
to make a further order at a later date which would require all
charities to sign up to the Fundraising Regulator or to give the
Charity Commission the power to regulate fundraising.
Power for most (but not all) charities to make social
A further order is due to be made in October 2016 which will
the Charity Commission's new power to give official
the additional requirements for agreements between charities
and professional fundraisers and/or commercial participators;
the new disclosure requirements in relation to fundraising in
annual reports for charities subject to an audit.
A final order is expected to be made in April 2017 which will
bring the following into effect:
Provisions which extend the situations where individuals are
automatically disqualified from acting as trustees.
Prohibition for individuals to take part in corporate decisions
while disqualified from acting.
During the Act's time in parliament, commitments were given
to consult on guidance relating to official warnings by the
Commission and the power to disqualify people from being a
The Charity Commission has launched its consultation on its
proposed approach to using the new power to disqualify individuals
from acting as trustees. The consultation is open until 22 August
2016 and the documents are available here.
The consultation on official warnings is expected to be opened
in the coming weeks.
Our summary of the provisions of the Charities Act is available
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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