UK charities gained more financial freedom this week as changes to the Charities Act 2022 came into effect on Wednesday (14 June).
The updated legislation gives charities more flexibility when selling, leasing or disposing of land by simplifying some of the legal requirements.
This includes widening the category of designated advisers who can advise on charity disposals, and giving trustees discretion to decide how to advertise the disposal.
Trustees also have new statutory powers surrounding permanent endowments.
In certain circumstances, charities can now spend or borrow a proportion of their permanent endowment fund without authorisation from the Charity Commission.
Some charities can also use their endowments to make social investments that are unlikely to turn a profit.
Aarti Thakor, director of legal & accounting services at the Charity Commission, said:
"These are positive changes that will impact a significant number of charities, so it is important all organisations, big or small, take the time to check what this means for them.
"This is especially important if they are looking, for example, to dispose of land."
Further information on the changes to the Charities Act 2022 is available on the Government website.
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