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The likely impact of these changes has been

We know that some registered providers of social housing that are companies and registered charities are considering converting to become community benefit societies, with the aim of becoming exempt charities.

Of course it’s reasonable for charities to be concerned about the potential for increased governance and transaction costs. However, any charity considering converting to community benefit society status will need to balance these against the inevitable, potentially substantial, costs of conversion.

The likely impact of these changes has been overstated because of misunderstandings about how the Charities Act framework operates.

Once the changes take effect, we expect most disposals by registered charities that are also registered providers of social housing will be eligible for self-certification under the Charities Act.

Self-certification is not onerous

Appropriate professional advice but does not require an order from the commission. The steps to be taken in order to self-certify are, on the whole, basic steps that you would expect responsible charity trustees to be taking.

None of this is bureaucratic red tape

Charities also need to remember that, whether their charity is registered with us or is exempt, they must comply with charity law. Any decisions they take must be in the charity’s best interests and in furtherance of its charitable purposes.

Conflicts of interest need to be managed appropriately. Transactions with “connected persons” – such as individuals with a close personal or business connection to the charity or its trustees – may require consent from the commission whether a charity is registered or exempt.

Charity Commission

Charities also need to remember that, whether their charity is registered with us or is exempt, they must comply with charity law. Any decisions they take must be in the charity’s best interests and in furtherance

  1. Conflicts of interest need
  2. Conflicts of interest need
  3. Conflicts of interest need
  4. Conflicts of interest need
  5. Conflicts of interest need

Charities also need to remember that

Charities also need to remember that, whether their charity is registered with us or is exempt, they must comply with charity law. Any decisions they take must be in the charity’s best interests and in furtherance of its charitable purposes. Conflicts of interest need to be managed appropriately.