BWB Briefing for Charities and Social Enterprise

At a glance

The Charity Commission has published new guidance on changing charity structures and transferring charity assets.

Various sector bodies have responded to the Chancellor’s Autumn Statement.

New Philanthropy Capital has published “Growing pains: getting past the complexities of scaling social impact”.

The Government has released a report showing the progress made in preparing for the next stage of the rehabilitation of offenders reforms.

Charity Commission

The Commission has published the following new guidance on changing charity structures:

The Commission has published a “Strategic Statement on the Charity Commission’s regulation of fundraising”.

The Charity Commission has published:

  • a report on its inquiry into The Hinckley Concordia Association (501904). The charity provides recreation and leisure facilities via the Concordia Theatre. The Commission concluded that two former trustees had knowledge that someone with criminal convictions that would affect their suitability from a safeguarding perspective had been employed at the theatre and did not deal responsibly and appropriately with the matter. The Inquiry therefore concluded that these failings amounted to misconduct and/or mismanagement in the administration of the charity by those two individuals. The regulator also found that there were shortcomings in the charity’s Child Protection Policy in place at that time.
  • a report of its Operational compliance case involving the charity Children’s Cancer and Leukaemia Fund (CALF). Bank statements showed payments totalling over £1,800 had been made to one of the trustees. Other listed expenditure, totalling nearly £7,600, did not appear to be in furtherance of the charity’s objects, such as payments for dental treatment and payments to a travel agency. In October, two of the charity’s trustees pleaded guilty to criminal offences – one was sentenced to 18 months in prison, the other received a suspended sentence.

The Charity Commission has opened a statutory inquiry into BIETEC Learning and Development Training Centre, registered charity number 1108129. Among other things, the inquiry will examine and deal with the apparent discrepancy between the charity’s published income and expenditure, and the deposits and payments in the charity’s bank account and whether the charity is being used for private benefit.

Payment of profits by a charity's trading subsidiary to the charity

Several weeks ago the Institute of Chartered Accountants in England and Wales published this technical briefing about payments of profits from a trading subsidiary. We are looking into this further and will cover the issue in detail in our next Charity and Social Enterprise Newsletter.


The Equality and Human Rights Commission has welcomed a Scottish Court ruling that a Scottish Council acted unlawfully when it removed a disabled student’s support package on the day he turned 18. The Council was found in court to have breached the age and disability requirements of the Equality Act 2010, and the Public Sector Equality Duty (PSED). This is the first time that the age requirements of the Equality Act 2010 and the PSED have been successfully upheld in a Scottish court.

See items under International Development and Scotland below.

Social investment

The big news in the Autumn Statement is that the limit on social investment tax relief will significantly increase post State Aid clearance to £5m per annum for three years up to £15m in total per organisation. BWB’s Luke Fletcher comments “This is a very significant development and is likely to mean much more significant take-up of SITR over time.”

Social Enterprise UK has welcomed the new social investment tax relief measures announced in the Autumn Statement.

Social Value / Impact

Several organisations have published their responses to the Social Value Act review. See below for responses from:

New Philanthropy Capital has published “Growing pains: getting past the complexities of scaling social impact”.

Social enterprise

The SROI Network, soon to be Social Value UK, has just released a report “How do Companies Act?” calling for a change in legislation to demand more assurance of social and environmental impact information.

Social Enterprise UK has published its first Social Impact Report.

Rehabilitation of offenders

The Government has released a report showing the progress made in preparing for the next stage of the reforms.


The Government has announced a further £2 million funding to the Community First Endowment Match Challenge, a national programme where a central funding pot is grown from individual and corporate donations. So far £70 million has been donated by members of the public and businesses and matched with £40 million from government. The money that is donated is invested ethically by specialist investment managers CCLA. Returns on the investment are granted to local charities across the country chosen by the original donor, leaving his or her investment in the endowment pot in perpetuity.

Housing/services to the elderly

Housing Minister Brandon Lewis has announced a £1 million investment in housing advice services to the elderly.

International development

The Department for International Development has announced a new framework which puts disability at the heart of the UK’s international development programmes.

The UN Secretary General has released his synthesis report The Road to Dignity by 2030: Ending Poverty, Transforming All Lives and Protecting the Planet, with a briefing for member states at the UN in New York.

Information / data protection

The company behind Manchester’s annual festival, the Parklife Weekender has been fined £70,000 after sending unsolicited marketing text messages. The text was sent to 70,000 people who had bought tickets to last year’s event, and appeared on the recipients’ mobile phone to have been sent by “Mum”. There were several complaints from recipients whose mothers had died recently, with the message causing them considerable distress.


See item under Charity Commission above.

Health and safety/food safety/corporate manslaughter

The Sentencing Council is currently consulting on new sentencing guidelines for some health and safety, food safety and corporate manslaughter offences. The consultation closes in February.


The Office of the Scottish Charity Regulator has published a new equality strategy.

Also see item under Equality above.

Stephen Lloyd's Memorial

Stephen's memorial service will take place on the 21 January 2015 at 11.00am at St Martin in the Fields, Trafalgar Square.

There will be tributes from Stephen’s family, colleagues and charity leaders including Sir Tim Smit, founder of the Eden Project and Jonathon Porritt, environmentalist and activist, as well as anthems from the Choir of St Martins.

St Martins is a vibrant, open and inclusive church at the heart of London and a fitting place to celebrate and give thanks for Stephen’s life.

All are very welcome to attend. Please feel free to notify other networks, with no need to RSVP.

Posted on 09/12/2014 in Legal Updates

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