Charities Act 2006

In early November, the Charities Bill received royal assent and takes its place on the statute book as the Charities Act 2006. The Act will be implemented in stages over an initial period of 18 months and further information about this implementation is expected soon from the Office of the Third Sector. CTN will keep you up to date with the implementation timetable and its impact on you as a trustee or management committee member.

Some of the key provisions, including the Charitable Incorporated Organisation (CIO), will require new regulations to be drafted and consulted upon before they can be implemented.

On the question of public benefit, the Government has restated its intention that the public benefit test should be rigorously applied and has committed itself to review this in three years, with a view to introducing further legislation if necessary. This statement has been supported by the Charity Commission who are developing a strategy to apply the public benefit test across a range of charities, including those for whom public benefit has previously been presumed. The purpose of the public benefit test is to promote public trust and confidence in charity and to help the public to understand why charities deserve the tax and other benefits they receive.