- 17 Dec 2024
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- 5 min read
Reflecting on 2024: 12 Key Updates for the Charity Sector
As the festive season approaches, it’s the perfect time to reflect on some of the key events and developments that have shaped the charity sector over the past year. In the spirit of the ’12 Days of Christmas’ we’ve compiled our top highlights for 2024 below.
- At the beginning of the year the Charity Commission gave to us: their five-year strategy
In February, the Commission published their 2024-2029 strategy, outlining their ambitions, values, measures of success and their five priorities, which can be viewed here.
2. Tranche 3 of the Charity Act 2024
On 7 of March this year, The Charities Act 2022 came into force in almost its entirety with the implementation of the third tranche. These provisions included sections on charity constitutions, charity land, powers relating to appointments of trustees and charity mergers.
The sections that have yet to come into force are sections 15 and 16 which relate to ex gratia payments, and parts of section 18 and 24.
3. On the third month of the year the Charity Commission gave to us new guidance on accepting and refusing donations
Also in March, the Charity Commission published new guidance on accepting and refusing donations which helpfully set out the legal rules for trustees when faced with a situation where they are unsure whether to accept, refuse or return a donation made to the charity. The guidance can be viewed here.
4. Fundraising Regulator: the announcement that fees were increasing
In April, the Fundraising Regulator announced that, for the first time in eight years, their fees will increase. This increase will take place over two years, beginning September 2024.
The levy imposed on charities will be adjusted on a progressive scale, meaning that charities with higher fundraising expenditures will experience a more significant increase. To ensure a smoother transition as charities move up the payment scale, two additional bands have been introduced, making the rise in levy payments more gradual. The levy will also be subject to annual adjustments based on the Consumer Price Index.
In addition to these changes, the cost of registration for smaller charities has been raised from £50 to £60.
5. On the fifth month of the year, the Charity Governance Code gave to us: the news that they are updating their code via consultation
In May, the Charity Governance Code opened a consultation to help update their code. The Steering Group aimed to conduct a comprehensive review of the Code that will encompass various aspects, including the content, structure, and language used, as well as the framework’s applicability to charities of different sizes and its overall user-friendliness. Additionally, they were keen to identify any barriers or obstacles that may hinder the use of the Code. The Consultation ran until August and the enhanced and updated version of the Code in due to be published in early 2025.
6. My Charity Commission Account rollout
Throughout the year the Commission has continued with the rollout of ‘My Charity Commission Account’ which marks a significant enhancement in their online services. This platform provides a unique login for each trustee or authorised employee, streamlining access to services. Trustees of multiple charities will particularly benefit from a consolidated dashboard view, simplifying the management of their responsibilities.
‘My Charity Commission Account’ is now the primary portal for trustees to submit annual returns and update charity details. The Commission anticipates this initiative will foster a more direct digital engagement between individual trustees and the Commission, facilitating a long-term shift in their interaction model.
7. The Charity Commission gave to us: A LOT of new and updated guidance
The year 2024 marked a significant period for the Charity Commission in updating their existing guidance (much to take account of the Charities Act 2022) and producing new guidance. Over the course of the year, the Commission posted or updated more than 30 pieces of guidance, reflecting a proactive approach to addressing the evolving needs and challenges faced by charities. The new and updated guidance covers a wide array of topics, including governance, financial management, fundraising practices, and safeguarding policies, among others.
More recently, it published important guidance on how to protect charities from cyber crime and what internal financial controls should be used to manage their financial activity, to protect it from fraud and loss. Anyone can be a victim of cyber crime at any time, so it is vital that charities stay up to date on what they must do to prevent or respond to an attack.
8. On the eighth month of the year the Charity Commission gave to us: the findings of the public trust in charities research
In August, the Charity Commission published its findings on the public trust in charities 2024. It found that charities are the second most trusted group in society, after doctors. This is indicative of the public’s growing confidence in the charity sector. To see more details you can view our earlier article on this here.
9. The Government gave to us: the 2024 budget
In October, the Labour Government’s Rachel Reeves announced a series of tax increases amounting to £40 billion. A significant portion of this revenue is expected to come from changes to National Insurance contributions for employers. Specifically, the rate at which employers contribute to National Insurance will rise from 13.8% to 15%, and the earnings threshold at which businesses start paying National Insurance for their employees will be lowered from £9,100 to £5,000.
Unfortunately, as a result, charities could face significant additional financial strain. This additional expense might adversely affect the operations of some charities and may force some charities to make difficult decisions, including the possibility of reducing their workforce.,
10. The Charity Commission gave to us: the published Mermaids inquiry report
The long-anticipated Mermaids inquiry was published in October, with the Commission concluding that over the course of several years, the charity Mermaids was not governed to the standards expected of it.
You can read the full report here.
11. On the eleventh month of the year, the Commission gave to us: the highly anticipated conclusion to The Captain Tom Foundation inquiry.
The Commission’s investigation revealed significant and recurrent misconduct and/or mismanagement within the charity, specifically concerning the actions of trustees Mr and Mrs Ingram-Moore. The report emphasises a consistent failure to address conflicts of interest, which stemmed from the Ingram-Moore’s familial connections and the charity’s associations with their private enterprises. These conflicts resulted in both direct and indirect personal gains for Mr and Mrs Ingram-Moore. To view more details you can review the full report here.
12. On the twelfth month of the year, the Commission gave to us guidance on giving with confidence this festive season
In early December, the Commission published a reminder of how people can give to charities with confidence, including providing seven simple steps for safe giving. The reminder can be viewed here.
If you would like to discuss any of the above in detail or speak to a member of our Charities team, please contact [email protected]
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.
