Webinar: Tuesday, June 20th 2023
There are approximately 412,395 charities in the UK, including 169,000 charities registered with the Charity Commission for England and Wales. Charities employ around 950,000 people, almost three percent of the total UK workforce and generating a combined annual income of over £83 billion. However, the financial resilience of the charity sector was significantly weakened by the turbulence of the Covid-19 pandemic, as the proportion of charities with an income of more than £500,000 with no or negative free reserves tripled, from 9% to 28%, between April 2020 and July 2021. 25% of UK charities lost 40% of their income in 2020, with a £10 billion reduction in the sector and 60,000 job losses in the 2020/21 financial year. The cost-of-living crisis has served to further increase the pressure on charities. As demands have increased and economic uncertainty has surged, many charities have been forced to curtail or shut down operations. Furthermore, 2022 saw the lowest number of new charities registered with the Charity Commission since 1989.
In February 2022, the government’s Charities Act, which aims to ease the struggles encountered by many in the sector, receiving royal assent. Long-term savings are expected as a result of the Charities Act. The Act aims to tackle red tape, removing administrative and legal burdens which are currently placed on charities so as to save both money and time. The measures were proposed in response to the Law Commission’s 2017 report, ‘Technical Issues in Charity Law’. The Act contains five key elements: not only are updates to governing documents and land disposal made easier, but charities also now have greater flexibility with regard to permanent endowments, are able to pay trustees for goods provided, and have been given the ability to spend small donations without contacting individual donors for permission. According to the government, these provisions could save the charity sector £2.8 million a year and £28 million over the next decade.
Whilst the Act has been welcomed across the charity sector for the increased flexibility which it provides and the removal of much bureaucratic procedure, some have suggested that it is a missed opportunity to make fundamental reforms which could further support the sector. Such challenges have largely concerned the position and status of the Charity Commission, as the regulator must currently defer to the attorney general, requiring permission in order to fully exercise its powers. Some have suggested that the Act has failed to rectify these issues, and as such has left the sector with a ‘relatively weak regulator, which is heavily burdened and not well resourced’. Additionally, many charities have warned that rising demand could leave them struggling to cope, calling for greater investment in skills and more collaboration between charities, government and business so as to ensure resilience throughout more challenging periods. Critics also highlight that charities are increasingly having to take up roles previously carried out by the State.
This symposium is, therefore, a timely opportunity to assess opportunities for progress in the charity sector, evaluate the implementation and impact of the Charities Act and formulate strategies for a resilient future.
Programme
- Assess existing legislation affecting the charity sector and identify key challenges facing charities in the UK
- Evaluate the Charities Act 2022, its implementation and impact, and discuss opportunities for further legislative reform
- Examine the impact of the cost-of-living crisis on charities across the UK, and share best practice for ensuring financial sustainability and dealing with rising demand amid stretched resources
- Discuss the support provided to charities by the government and suggest methods to more effectively address challenges
- Review the role of the Charity Commission in regulating the operations of charities and discuss ideas for strengthening the Commission’s powers
- Formulate strategies for ensuring the resilience of the charity sector
- Examine the role of charities and the activities, functions and services that charities carry out, which previously had been performed by the State, and discuss the most effective means of meeting needs
- Identify methods for improving and maintaining public trust and confidence in UK charities
- Discuss how better collaboration between charities, government and business might improve resilience
- Explore opportunities for greater use of technology by charities, considering the benefits of increased efficiency
To register for the briefing, please click here.
