Anne-Marie covered in her presentation the Charities Act implementation and review. Bribery Act; Euality Act.

1. Charity Finance Directors’ Group
Legal Update
Anne-Marie Piper
Farrer & Co LLP
12 May 2011

2. In this session
• Charity Commission
• Charities Act 2006
• Public Benefit
• Charity Tribunal
• Finance Act 2010
• Equality Act 2010
• Bribery Act

3. Charity Commission
• New Chief Executive: Sam Younger
• Funding for the Commission predicted to fall by 25-30%
• Staff numbers have dropped by 30% since 2006
• Drop in funding of 16% in real terms since 2006
• Strategic review
• Consultation variation until 14 January 2011
• Completion/implementation from May 2011

4. Charities Act 2006
• Charitable Incorporated Organisations (CIOs) - Postponed
• Public Charitable Collections – No progress
• Statutory review of the Act due this year
• Consolidation Act in the pipeline:
• Charities Act 2006
• Charities Act 1993
• Recreational Charities Act 1958

5. Public Benefit
• Charity Commission assessments:
• Independent schools/care homes – review of those that failed
• Arts organisations
• Sports charities
• Private hospitals and healthcare charities – assessments scrapped
• ISC’s application for judicial review
• Attorney General’s referral of questions relating to the guidance
on:-
• Independent schools
• Benevolent funds

6. Charity Tribunal
• Only hears appeals against decisions of the Charity Commission
• BUT only some decisions
• Small number of cases to date
• Pragmatic approach
• Costs and the use of lawyers

7. Finance Act 2010
• Background
• Taxes covered
• Implementation
• The new test for charity – it must:
• be established for charitable purposes only
• meet a “jurisdiction condition”
• meet a “registration condition”
• meet a “management condition”

8. Further reading – Finance Act 2010
• Farrer & Co briefings: www.farrer.co.uk
• HMRC guidance: http://www.hmrc.gov.uk/charities/guidance-
notes/chapter2/fp-persons-test.htm

9. Equality Act 2010
• Background
• Framework
• Protected characteristics
• Activities within the scope of the Act
• Direct and indirect discrimination
• Exceptions
• What charities need to do
• Review – objects, policies, projects
• Training and information – trustees, staff and others
• Consider – for future projects and activities

10. Further reading – Equality Act 2010
• Farrer & Co briefings: www.farrer.co.uk
• Equality and Human Rights Commission:
http://www.equalityhumanrights.com/legislative-framework/equality-
bill/
• What equality law means for your voluntary and community sector
organisation (including charities and religion or belief organisations)
• Charity Commission summary guidance
http://www.charity-commission.gov.uk/library/equality act
summary.pdf
• Further guidance expected in 2011

11. Bribery Act 2010
• Background
• In force 1 July 2011
• 4 new offences
• active bribery (bribing another person)
• passive bribery (being bribed)
• bribery of a foreign public official
• failure to prevent bribery
• Guidance issued by the Ministry of Justice
• What this means for charities
• Review policies, procedures and contracts
• Training
• Charities operating overseas

12. Further reading – Bribery Act 2010
• Farrer & Co briefings: www.farrer.co.uk
• Ministry of Justice Guidance:
www.justice.gov.uk/downloads/guidance/making-reviewing-
law/bribery-act-2010-guidance.pdf