Charity Law Solicitors.

As a charity it is important to understand your legal obligations and rights, a Charity Law solicitor swill be able to help with this, find Charity Law Solicitors from Solicitors.com

Charity law covers the establishment, administration and regulation of charities and other not-for-profit organisations. A charity must be established exclusively for charitable purposes and operate for the public benefit rather than for private profit. Charity law solicitors advise trustees, founders, employees, volunteers, donors, beneficiaries and organisations working throughout the voluntary sector.

Setting Up a Charity

Before establishing a charity, it is important to decide whether charitable status is appropriate and which legal structure best suits the organisation. Common structures include:

• A charitable incorporated organisation, commonly known as a CIO;
• A charitable company limited by guarantee;
• A charitable trust;
• An unincorporated charitable association; and
• In suitable cases, another form of charitable or not-for-profit body.

The chosen structure can affect personal liability, ownership of property, employment arrangements, reporting requirements and the way the organisation enters into contracts. A solicitor can help prepare the governing document, define the charity's purposes, establish the powers of its trustees and deal with an application to the Charity Commission.

Charitable Purposes and Public Benefit

An organisation cannot become a charity merely because it carries out worthwhile work or operates without making a profit. Its purposes must fall within the charitable purposes recognised by law and must be for the public benefit. Trustees must also continue to operate the organisation in furtherance of those purposes. A charity's governing document should clearly explain:

• What the charity has been established to achieve;
• Who may benefit from its work;
• How trustees are appointed and removed;
• How decisions will be made;
• How money and property may be used; and
• What will happen if the charity closes.

Poorly drafted charitable purposes can delay registration and restrict the charity's future activities.

The Charities Acts

The Charities Act 2011 remains the principal legislation governing charities in England and Wales. It consolidated much of the earlier charity legislation into a single Act. The Charities Act 2022 subsequently amended the 2011 Act and introduced several technical reforms intended to make it easier for charities to deal with matters such as:

• Changing governing documents;
• Disposing of charity land;
• Using permanent endowment;
• Applying funds raised by an unsuccessful appeal;
• Paying trustees for providing goods in certain circumstances; and
• Dealing with minor or ex gratia payments.

Charities must also comply with other relevant laws, including company law, employment law, data protection, safeguarding, tax, fundraising and health and safety requirements. < h3> Trustees' Legal Duties Charity trustees are responsible for the overall control and management of their charity. The role may be unpaid, but that does not reduce the trustees' legal responsibilities. Trustees must:

• Ensure the charity carries out its purposes for the public benefit;
• Comply with the governing document and the law;
• Act in the charity's best interests;
• Manage the charity's resources responsibly;
• Use reasonable care and skill;
• Ensure the charity is accountable; and
• Identify and properly manage conflicts of interest.

Trustees should understand the charity's finances, question decisions where necessary and ensure that suitable controls are in place. They should not simply leave responsibility to one trustee, an employee or an outside adviser.

Governance and Decision-Making

Good governance helps a charity use its resources effectively, protect its reputation and retain the confidence of donors, volunteers and beneficiaries. A charity solicitor may assist with:

• Trustee appointments and retirements;
• Meetings, voting and written resolutions;
• Conflicts of interest and trustee benefits;
• Delegating responsibilities to staff or committees;
• Governance reviews and constitutional amendments;
• Internal policies and procedures;
• Complaints and disputes; and
• Mergers, collaborations and restructuring.

Important decisions should be properly considered and recorded. Trustees should have sufficient information, identify relevant risks and demonstrate why they believe their decision is in the charity's best interests.

Charity Commission Registration and Regulation

The Charity Commission is the regulator of charities in England and Wales. It maintains the register of charities, provides guidance and has powers to investigate misconduct or mismanagement. Legal advice may be required when dealing with:

• An application to register a charity;
• Changes to the charity's name, purposes or governing document;
• Annual returns, accounts and reports;
• Regulatory enquiries and investigations;
• Serious incident reports;
• Unauthorised trustee payments or benefits;
• Financial loss or suspected fraud;
• Safeguarding failures; and
• Suspension or removal of trustees.

Early advice can be particularly important where trustees believe that a serious incident has occurred or that the charity may have breached its legal duties.

Charity Property and Land

Special rules can apply when a charity buys, leases, mortgages or sells land. Trustees must ensure that any transaction is in the charity's best interests and that the requirements of charity law are followed. Depending on the transaction, this may involve obtaining professional advice, advertising the property or including prescribed statements in the legal documents. A failure to follow the correct procedure can delay or jeopardise a sale, lease or mortgage.

Fundraising, Donations and Legacies

Charities must ensure that their fundraising is lawful, properly controlled and consistent with their values. Charity solicitors may advise on:

• Public fundraising and fundraising agreements;
• Commercial participation and sponsorship;
• Restricted donations;
• Failed or surplus fundraising appeals;
• Gift Aid and tax considerations;
• Legacies left under a will;
• Disputed or unclear gifts; and
• Complaints about fundraising practices.

Trustees remain responsible for fundraising carried out in the charity's name, even where the work is delegated to employees, volunteers or professional fundraisers.

Employment, Volunteers and Safeguarding

Charities may employ staff and engage volunteers, but the legal status of each person must be clear. Advice may be required concerning employment contracts, disciplinary procedures, dismissals, discrimination, whistleblowing, volunteer agreements and disputes about whether a volunteer has acquired employment rights. Charities working with children or adults at risk must also maintain appropriate safeguarding arrangements. Trustees should ensure that concerns are handled promptly and that serious incidents are reported to the appropriate authorities.

Charity Disputes

Disputes can arise between trustees, members, founders, employees, beneficiaries and connected organisations. Common issues include:

• Disagreements about control of the charity;
• Removal or appointment of trustees;
• Conflicts of interest;
• Misuse of charitable funds or property;
• Disputes over membership or voting rights;
• Challenges to constitutional changes;
• Employment claims; and
• Regulatory complaints.

A specialist solicitor may help resolve the dispute through negotiation or mediation. Where this is not possible, court proceedings or involvement by the Charity Commission may be necessary.

Useful Charity Resources

Useful sources of information include:

• The Charity Commission for England and Wales;
• Charity Commission public-benefit guidance;
• NCVO – the National Council for Voluntary Organisations; and
• The Law Society.

Charity law differs across the United Kingdom. The Charity Commission regulates charities in England and Wales, while Scotland and Northern Ireland have separate charity regulators and legal requirements.

Finding a Charity Law Solicitor

Charity law is a specialist area, and not every firm will advise on every type of charitable organisation or regulatory problem. You may therefore need to search beyond your immediate area to find a solicitor with the appropriate experience. Before instructing a firm, ask whether it regularly advises charities of your size and structure and whether it can assist with related matters such as employment, property, tax, governance and regulatory compliance. To find a Charity Law Solicitor, use the search facility at the top of the page. We recommend contacting several firms so that your charity can compare their experience, proposed approach and fees.