Legalize / United Kingdom / Public General Act

Charities Act 2006

Type Public General Act

Publication 2006-11-08

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Meaning of “charity” and “charitable purpose”

Meaning of “charity”

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Meaning of “charitable purpose”

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The“public benefit” test

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Guidance as to operation of public benefit requirement

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Special provisions about recreational charities, sports clubs etc.

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Part 2 — Regulation of charities

Chapter 1 — The Charity Commission

Establishment of Charity Commission

The Charity Commission

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The Commission’s objectives, general functions and duties

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The Charity Tribunal

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Chapter 3 — Registration of charities

General

Registration of charities

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Interim changes in threshold for registration of small charities

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(1) At any time before the appointed day, the Minister may by order amend section 3 of the 1993 Act (the register of charities) so as to—

(a) replace section 3(5)(c) (threshold for registration of small charities) with a provision referring to a charity whose gross income does not exceed such sum as is prescribed in the order, and

(b) define “gross income” for the purposes of that provision.

(2) Subsection (1) does not affect the existing power under section 3(12) of that Act to increase the financial limit specified in section 3(5)(c).

(3) This section ceases to have effect on the appointed day.

(4) In this section “the appointed day” means the day on which section 3A(1) to (5) of the 1993 Act (as substituted by section 9 of this Act) come into force by virtue of an order under section 79 of this Act.

Exempt charities: registration and regulation

Changes in exempt charities

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Increased regulation of exempt charities under 1993 Act

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General duty of principal regulator in relation to exempt charity

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Commission to consult principal regulator before exercising powers in relation to exempt charity

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Chapter 4 — Application of property cy-près

Cy-près occasions

Application cy-près by reference to current circumstances

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Application cy-près of gifts by donors unknown or disclaiming

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Application cy-près of gifts made in response to certain solicitations

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Schemes

Cy-près schemes

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Chapter 5 — Assistance and supervision of charities by court and Commission

Suspension or removal of trustees etc. from membership

Power to suspend or remove trustees etc. from membership of charity

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Directions by Commission

Power to give specific directions for protection of charity

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Power to direct application of charity property

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Publicity relating to schemes

Relaxation of publicity requirements relating to schemes etc.

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Common investment schemes

Participation of Scottish and Northern Irish charities in common investment schemes etc.

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Advice or other assistance

Power to give advice and guidance

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Power to determine membership of charity

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Powers of entry etc.

Power to enter premises and seize documents etc.

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Mortgages of charity land

Restrictions on mortgaging

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Chapter 6 — Audit or examination of accounts where charity is not a company

Annual audit or examination of accounts of charities which are not companies

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Duty of auditor etc. of charity which is not a company to report matters to Commission

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Group accounts

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Chapter 7 — Charitable companies

Relaxation of restriction on altering memorandum etc. of charitable company

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Annual audit or examination of accounts of charitable companies

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Duty of auditor etc. of charitable company to report matters to Commission

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Chapter 8 — Charitable incorporated organisations

Charitable incorporated organisations

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Chapter 9 — Charity trustees etc.

Waiver of disqualification

Waiver of trustee’s disqualification

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Remuneration of trustees etc.

Remuneration of trustees etc. providing services to charity

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Disqualification of trustee receiving remuneration by virtue of section 36

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Liability of trustees etc.

Power of Commission to relieve trustees, auditors etc. from liability for breach of trust or duty

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Trustees' indemnity insurance

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Chapter 10 — Powers of unincorporated charities

Power to transfer all property

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Power to replace purposes

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Power to modify powers or procedures

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Spending of capital

Power to spend capital

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Mergers

Merger of charities

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Part 3 — Funding for charitable, benevolent or philanthropic institutions

Chapter 1 — Public charitable collections

Preliminary

Regulation of public charitable collections

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(1) This Chapter regulates public charitable collections, which are of the following two types—

(a) collections in a public place; and

(b) door to door collections.

(2) For the purposes of this Chapter—

(a) “public charitable collection” means (subject to section 46) a charitable appeal which is made—

(i) in any public place, or

(ii) by means of visits to houses or business premises (or both);

(b) “charitable appeal” means an appeal to members of the public which is—

(i) an appeal to them to give money or other property, or

(ii) an appeal falling within subsection (4),

(or both) and which is made in association with a representation that the whole or any part of its proceeds is to be applied for charitable, benevolent or philanthropic purposes;

(c) a “collection in a public place” is a public charitable collection that is made in a public place, as mentioned in paragraph (a)(i);

(d) a “door to door collection” is a public charitable collection that is made by means of visits to houses or business premises (or both), as mentioned in paragraph (a)(ii).

(3) For the purposes of subsection (2)(b)—

(a) the reference to the giving of money is to doing so by whatever means; and

(b) it does not matter whether the giving of money or other property is for consideration or otherwise.

(4) An appeal falls within this subsection if it consists in or includes—

(a) the making of an offer to sell goods or to supply services, or

(b) the exposing of goods for sale,

to members of the public.

(5) In this section—

“business premises” means any premises used for business or other commercial purposes;

“house” includes any part of a building constituting a separate dwelling;

“public place” means—any highway, and(subject to subsection (6)) any other place to which, at any time when the appeal is made, members of the public have or are permitted to have access and which either—is not within a building, orif within a building, is a public area within any station, airport or shopping precinct or any other similar public area.

(6) In subsection (5), paragraph (b) of the definition of “public place” does not include—

(a) any place to which members of the public are permitted to have access only if any payment or ticket required as a condition of access has been made or purchased; or

(b) any place to which members of the public are permitted to have access only by virtue of permission given for the purposes of the appeal in question.

Charitable appeals that are not public charitable collections

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(1) A charitable appeal is not a public charitable collection if the appeal—

(a) is made in the course of a public meeting; or

(b) is made—

(i) on land within a churchyard or burial ground contiguous or adjacent to a place of public worship, or

(ii) on other land occupied for the purposes of a place of public worship and contiguous or adjacent to it,

where the land is enclosed or substantially enclosed (whether by any wall or building or otherwise); or

(i) by virtue of the express or implied permission of the occupier of the land, or

(ii) by virtue of any enactment,

and the occupier is the promoter of the collection; or

(d) is an appeal to members of the public to give money or other property by placing it in an unattended receptacle.

(2) For the purposes of subsection (1)(c) “the occupier”, in relation to unoccupied land, means the person entitled to occupy it.

(3) For the purposes of subsection (1)(d) a receptacle is unattended if it is not in the possession or custody of a person acting as a collector.

Other definitions for purposes of this Chapter

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(1) In this Chapter—

“charitable, benevolent or philanthropic institution” means—a charity, oran institution (other than a charity) which is established for charitable, benevolent, or philanthropic purposes;

“collector”, in relation to a public charitable collection, means any person by whom the appeal in question is made (whether made by him alone or with others and whether made by him for remuneration or otherwise);

“local authority” means a unitary authority, the council of a district so far as it is not a unitary authority, the council of a London borough or of a Welsh county or county borough, the Common Council of the City of London or the Council of the Isles of Scilly;

“prescribed” means prescribed by regulations under section 63;

“proceeds”, in relation to a public charitable collection, means all money or other property given (whether for consideration or otherwise) in response to the charitable appeal in question;

“promoter”, in relation to a public charitable collection, means—a person who (whether alone or with others and whether for remuneration or otherwise) organises or controls the conduct of the charitable appeal in question, orwhere there is no person acting as mentioned in paragraph (a), any person who acts as a collector in respect of the collection,and associated expressions are to be construed accordingly;

“public collections certificate” means a certificate issued by the Commission under section 52.

(2) In subsection (1) “unitary authority” means—

(a) the council of a county so far as it is the council for an area for which there are no district councils;

(b) the council of any district comprised in an area for which there is no county council.

(3) The functions exercisable under this Chapter by a local authority are to be exercisable—

(a) as respects the Inner Temple, by its Sub-Treasurer, and

(b) as respects the Middle Temple, by its Under Treasurer;

and references in this Chapter to a local authority or to the area of a local authority are to be construed accordingly.

Restrictions on conducting collections

Restrictions on conducting collections in a public place

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(1) A collection in a public place must not be conducted unless—

(a) the promoters of the collection hold a public collections certificate in force under section 52 in respect of the collection, and

(b) the collection is conducted in accordance with a permit issued under section 59 by the local authority in whose area it is conducted.

(2) Subsection (1) does not apply to a public charitable collection which is an exempt collection by virtue of section 50 (local, short-term collections).

(3) Where—

(a) a collection in a public place is conducted in contravention of subsection (1), and

(b) the circumstances of the case do not fall within section 50(6),

every promoter of the collection is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

Restrictions on conducting door to door collections

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(1) A door to door collection must not be conducted unless the promoters of the collection—

(a) hold a public collections certificate in force under section 52 in respect of the collection, and

(b) have within the prescribed period falling before the day (or the first of the days) on which the collection takes place—

(i) notified the local authority in whose area the collection is to be conducted of the matters mentioned in subsection (3), and

(ii) provided that authority with a copy of the certificate mentioned in paragraph (a).

(2) Subsection (1) does not apply to a door to door collection which is an exempt collection by virtue of section 50 (local, short-term collections).

(3) The matters referred to in subsection (1)(b)(i) are—

(a) the purpose for which the proceeds of the appeal are to be applied;

(b) the prescribed particulars of when the collection is to be conducted;

(d) such other matters as may be prescribed.

(4) Where—

(a) a door to door collection is conducted in contravention of subsection (1), and

(b) the circumstances of the case do not fall within section 50(6),

every promoter of the collection is guilty of an offence and liable on summary conviction to a fine not exceeding level 5 on the standard scale.

This is subject to subsection (5).

(5) Where—

(a) a door to door collection is conducted in contravention of subsection (1),

(b) the appeal is for goods only, and

every promoter of the collection is guilty of an offence and liable on summary conviction to a fine not exceeding level 3 on the standard scale.

(6) In subsection (5) “goods” includes all personal chattels other than things in action and money.

Exemption for local, short-term collections

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(1) A public charitable collection is an exempt collection if—

(a) it is a local, short-term collection (see subsection (2)), and

(b) the promoters notify the local authority in whose area it is to be conducted of the matters mentioned in subsection (3) within the prescribed period falling before the day (or the first of the days) on which the collection takes place,

unless, within the prescribed period beginning with the date when they are so notified, the local authority serve a notice under subsection (4) on the promoters.

(2) A public charitable collection is a local, short term collection if—

(a) the appeal is local in character; and

(b) the duration of the appeal does not exceed the prescribed period of time.

(3) The matters referred to in subsection (1)(b) are—

(a) the purpose for which the proceeds of the appeal are to be applied;

(b) the date or dates on which the collection is to be conducted;

(d) such other matters as may be prescribed.

(4) Where it appears to the local authority—

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