We had been promised the implementation of the next tranche of changes to the Charities Act 2011, by the Charities Act 2022, in 'spring 2023' - well apparently for the Government and the Charity Commission 'spring' is 14 June - they arrived yesterday! For any charities regularly disposing of interests in land - sales, leases, easements etc. the changes will be welcome. They include:

• widening the category of designated advisers who can provide charities with advice on certain disposals that the Charities Act 2011 requires;
• confirming that a trustee, officer or employee can provide advice on a disposal if they meet the relevant requirements;
• giving trustees discretion to decide how to advertise a proposed disposal of charity land; and
• removing the requirement for charities to get Charity Commission authority to grant a residential lease to a charity employee for a short periodic or fixed term tenancy.

Some of the other changes in force from 14 June 2023 relate to permanent endowment i.e. property including investments that your charity must keep rather than spend. There are new statutory powers to:

• enable charities to spend from smaller value permanent endowment funds of £25,000 or less, without Commission authority but only in certain circumstances; and
• again subject to conditions, borrow up to 25% of the value of a permanent endowment fund without Commission authority.

A new statutory power also enables charities that have opted into a total return approach to investment to use permanent endowment to make social investments with a negative or uncertain financial return, provided any losses are offset by other gains.

If you would like to know more about the changes why not join us on 6 July for an hour-long webinar led by Laura Mynott a senior associate in our charities property team and myself, where we will delve into the changes in more detail and seek to answer your questions. Do get in touch if you would like an invitation to the webinar.