Charities Update - May 2026

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• Ellie Yeoman,

• Kirsteen Hook

• 20 May 2026
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• 4 min read

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This month’s newsletter brings together practical updates and key developments affecting charities across governance, regulation and risk. We share news of a new fixed fee service, upcoming trustee training dates, and a selection of legal insights on charity whistleblowing, social media governance and emerging sector risks. You will also find the latest Charity Commission guidance and important regulatory changes, alongside wider updates on data protection and employment law that charities should have on their radar.

News from us

• We are pleased to introduce a new fixed fee service. For an agreed fixed fee we can carry out a comprehensive review of your charity’s governing document and provide a written report identifying the key provisions, restrictions and trustee duties, as well as recommended updates or changes. If you would like further information or wish to instruct us, please contact a member of our team.

Upcoming Events

• Southampton Trustee Training – 7^th July 2026
• Bournemouth Trustee Training – 8th September 2026
• Salisbury Trustee Training – 24^th November 2026

Charities Legal Insights

• Key Insights from the Charity Sector Risk Assessment 2025 – The Charity Commission’s 2025 risk assessment shows rising pressures on charities, with financial resilience highlighted as the most significant challenge as many organisations are now spending more than they earn. It also emphasises that growing governance, safeguarding, fraud and cyber risks make strong governance, clear financial controls and proactive risk management essential for maintaining public trust.

• Why robust social media policies are essential for charities – Charities need clear social media policies to reduce the risk of reputational damage and regulatory action. Trustees remain responsible for social media use, even where it is delegated, and that robust policies help ensure lawful, consistent and well‑governed communications, with clear oversight and processes for dealing quickly with problems if they arise.

• Charity trustees and whistleblowing: what the MacLennan case means for your organisation  – The employment tribunal decision in MacLennan v British Psychological Society confirms that charity trustees are not protected by whistleblowing provisions under the Employment Rights Act 1996, as trusteeship is a voluntary role rather than employment. While this limits legal recourse for trustees who suffer detriment after raising concerns, the decision highlights that charities must still handle such concerns carefully.

• Update – PECR charitable purposes soft opt in guidance published  – The new “charitable purposes soft opt-in” allows charities to send certain electronic marketing messages without prior consent where individuals have actively engaged with or supported their work. However, it applies only in limited circumstances and requires clear opt-out options, transparency, and compliance with PECR and UK GDPR. Charities should carefully review their processes, databases, and communications to ensure compliant use

Charity Commission Updates and Guidance

• Identifying and managing conflicts of interest in a charity (CC29) – GOV.UK – The Commission has recently published updated guidance on conflicts of interest. The guidance emphasises that trustees must always act in the best interests of their charity and identify, declare, and appropriately manage any conflicts between those interests and their personal or external loyalties.

• Fundraising for an emergency: guidance for charities (CC40) – GOV.UK – Charities may only fundraise in line with their charitable purposes, must comply with the law and the Code of Fundraising Practice, and should plan appeals carefully with clear terms, transparency and appropriate use of funds.

• The online filing service used to file company accounts and tax returns closed on 31 March 2026. From 1 April 2026 organisations will need to use commercial software to file annual accounts and Company Tax Returns with HMRC. Other options are available for filing Companies House accounts. You can find further information about the closure of the service and what to do now in the Commission guidance on filing company accounts and tax returns if you previously used the HMRC online service.

• From April 2026, the government introduced changes to the rules on tainted donations, approved charitable investments, and attributable income. These changes will affect all UK charities, Community Amateur Sports Clubs (CASCs), donors, and the agents and intermediaries who support them. The changes are designed to simplify existing rules and reduce the risk of charitable tax reliefs being misused. Read more information on changes to charity compliance in: Changes to the charity compliance measures and Charities tax compliance — summary of responses.

Updates from other sectors

• New complaints process required by the Data (Use and Access) Act  – The ICO has issued final guidance requiring all organisations to introduce a formal data protection complaints process, giving individuals the right to complain directly to data controllers about potential breaches. It highlights key obligations, including having a clear mechanism for submitting complaints, acknowledging them within 30 days, investigating and responding without undue delay, and preparing for the new legal requirement coming into force on 19 June 2026. Our data protection team is offering a fixed fee Data Protection Complaints Process Pack which includes template policies, staff communications and step-by-step guidance aligned with the new law and guidance. Please get in touch if you would be interested in this.

• Employment Alert – Employment Rights Act 2025 – Updated Timeline –  The article explores the Government’s updated timetable for implementing the Employment Rights Act 2025, including delayed reforms on fire and rehire, tribunal time limits, trade union balloting and the establishment of the Fair Work Agency. For charities, this means preparing for significant changes to employment practices, ensuring policies, volunteer management structures and governance frameworks are aligned with the new compliance and enforcement landscape.