Charities given public benefit guidance

General guidance for charities on public benefit has been published by the Charity Commission.

The Charities Act 2006 requires charities from 31 March 2009 to show they are established for public benefit and gives the commission responsibility for issuing guidance and judging whether a charity complies.
The new guidance—Charities and Public Benefit: the Charity Commission’s General Guidance on Public Benefit—identifies two key principles of public benefit: there must be an identifiable benefit/s; and the benefit/s must be to the public, or a section of the public.

Forsters solicitor Andrew Penny says under the guidance, actions, not words matter.
He says: “Some charities will need to review and change their objectives. For most it will be a question of reviewing their activities. Trustees will be expected to take the initiative and be imaginative and inventive in finding ways to benefit the public.”

He adds that the commission takes its policing role seriously, but does not expect change overnight and will assist charities to make the changes needed.
“Where a charity’s objects are incompatible with the public benefit requirement it will facilitate a transfer to a body as close as possible which can fulfil it,” he adds. (See this issue, p 113.)