The Charities Protection and Social Investment Act 2016, which only applies to charities in England and Wales, is now law. The Act has been introduced following a number of scandals in the Charity Sector such as the tragedy associated with Olive Cooke and fundraising ethics, and the demise of Kids Company.
There are four key areas:
- the power to make social investment is to be underpinned by statute which will be particularly helpful for charities wishing to make social investments or to benefit from social investment by other charities. (from 31 July 2016)
- charities working with professional fundraisers / commercial participators will be required to ensure the fundraising agreements are compliant with the updated legislation. Larger charities will also be required to report on fundraising in their annual reports. (from 1 November 2016)
- more regulatory powers for the CCEW including giving official warnings. (from 31 July 2016)
- CCEW disqualification of people from serving as trustees or senior management positions at a charity. (from 1 October 2016)
How this new law will impact your charity depends on whether you make social investments and / or engage with professional fundraisers.
The legislation is viewable here.