• 3 min read

Key Changes on the Horizon for Charities in 2025

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As we begin a new year, several significant developments are expected to impact the charity sector in 2025. Below is a summary of the key changes to anticipate:

Review of the Code of Fundraising Practice

A comprehensive review of the Code of Fundraising Practice is scheduled to be ‘soft launched’ in 2025. This follows a 12-week public consultation held in 2023, which sought feedback on proposed updates to the code. The revised code aims to reflect modern fundraising practices and address the feedback received during the consultation.

Revised Charity Governance Code

A new version of the Charity Governance Code is expected in early 2025. The updated guidelines will offer improved best practices to help charities enhance their governance structures, ensuring greater transparency, accountability, and efficiency in their operations.

Remaining Provisions of the Charities Act 2022

While most provisions of the Charities Act 2022 are now in force, some remain pending. These include:

  • Section 24 and Schedule 1: Amendments to the Universities and College Estates Act 1925, set to take effect on 19 May 2025.
  • Part of Section 18: Linked to Section 24 and Schedule 1, also expected to commence on 19 May 2025.
  • Sections 15 and 16: Related to ex gratia payments. The implementation timeline for these provisions has yet to be confirmed. For updates, refer to the Charity Commission’s implementation plan.

Charity Commission Consultation on Terrorist Financing Risks

The Charity Commission is currently consulting on the risks non-profit organisations face from terrorist financing schemes. This initiative aims to gather insights from the UK’s voluntary sector and civil society to better understand vulnerabilities, trends, and threats. The consultation runs until 31 January 2025, with findings to be published later in the year. These insights will inform strategies to combat potential risks effectively.

Progress on the Civil Society Covenant

Following the conclusion of the consultation in December 2024, progress on the Civil Society Covenant is expected in 2025. Designed to strengthen collaboration between the government and civil society, the covenant’s publication is anticipated in Spring 2025, fostering a supportive framework for charitable activities.

VAT and Business Rates Changes for Private Schools

From 1 January 2025, private schools will be subject to VAT on education fees. Additionally, from April 2025, the charitable relief on business rates will be removed for private schools with charitable status. These changes will likely have substantial financial implications for these institutions, potentially affecting their funding strategies and charitable activities.

Updated Charity Commission Guidance

The Charity Commission issued numerous new and updated pieces of guidance in 2024, and a similar trend is anticipated for 2025. Keeping abreast of these updates will be essential for charities to remain compliant and well-informed.

The Evolving Landscape of AI Law

The rapid evolution of artificial intelligence continues to influence law and technology. Throughout 2025, further updates and guidance are expected in this area, presenting both challenges and opportunities for charities. Discussions will likely focus on how AI can be leveraged responsibly within the sector.

These anticipated developments underscore the importance of staying informed and adaptable as charities navigate the challenges and opportunities of 2025. For specific questions or further details about any of these topics, please feel free to contact us.

Disclaimer

This information is intended for general informational purposes only and does not constitute legal advice. We recommend seeking professional advice before taking any action on the information provided. If you would like to discuss your specific circumstances, please feel free to contact us on 0800 2800 421.

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