Government Publishes Draft Protection of Charities Bill

The proposed new legislation will extend the powers of the Charity Commission, with the aim of protecting charities from abuse and malpractice.

The principal changes include new powers to: ban individuals with certain criminal convictions from becoming trustees; disqualify those deemed unfit to act as trustees; and issue warnings to or wind up charities (depending on the seriousness of the case) after making inquiries into misconduct or mismanagement.

The Charity Commission has welcomed the Bill but is concerned that there is no power to prevent individuals who have been disqualified as trustees from taking up other senior (non-trustee) roles in other charities. Moreover the Charity Commission cannot address breaches before they occur by directing trustees not to take specific actions.

A Committee has been tasked with considering the Bill which includes former Minister for Civil Society Nick Hurd MP.