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changes to Charity Commission public benefit guidance

The Charity Commission has withdrawn various parts of its guidance on public benefit and has produced interim advice for charity trustees.

Following an appeal by the Independent Schools Council against the Charity Commission's guidance on public benefit (as it relates to fee paying charities), the Upper Tribunal ruled that parts of the guidance were "wrong" and "obscure". View the link for our full article on this decision.

In a press release issued on 21 December 2011, the Charity Commission confirmed that it has withdrawn parts of its guidance after the Tribunal further ruled that those parts would be quashed if they were not removed. The Charity Commission expects to publish the substantive updated guidance in summer 2012, following a public consultation.

The Charity Commission has provided a useful questions and answers briefing, which clarifies the interim position for trustees. The briefing provides an outline of the key points of the Tribunal's ruling and examples of how fee-charging charities might make provision for people who cannot afford the fees. View the link for the Charity Commission's press release and links to the briefing.

Trustees must still have regard to the current Charity Commission guidance on public benefit, in light of the substantive Tribunal decision, and report on this in their annual report.

For further information and specific advice on how to apply the public benefit test to your charity, contact Elizabeth Davis in the Charities group on 023 8085 7011 or email elizabeth.davis@bllaw.co.uk.

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