Status: We will start this project in late 2012. We intend to publish a consultation paper in late 2013
There are about 250,000 charities in England and Wales, with a combined income of over £53 billion and combined investments of over £77 billion. This project will examine selected issues relating to the legal framework within which charities operate, in order to recommend reforms with a positive impact on charity law in practice. Of particular concern will be technical problems which currently cause uncertainty or impose disproportionate burdens on those involved in the administration of charities.
The project
Part of the project will focus on charities which are structured as charitable corporations by Royal Charter or by statute. We will examine the law regarding charitable corporations established by Royal Charter, in particular areas of uncertainty in relation to the basis on which such bodies hold property, the means by which the charter is amended and whether the corporate status of such bodies confers limited liability. In relation to charitable corporations established by statute, we will review the procedure for amendment of those statutory provisions which at present are unnecessarily burdensome.
The rest of the project will comprise issues arising from the forthcoming review of the Charities Act 2006 which Government and the Law Commission agree are suitable for investigation by an independent law reform body. These may include topics such as the procedural requirements for the disposal of charity land and the operation of the charity merger provisions in the Charities Act 2006.
Next steps
We will review, in discussion with Government, how to take the project forward in the light of consultation responses. If the project proceeds to a final report with draft Bill, we anticipate that publication will be in late 2015.
