Charity Commission Letter to Chief Executive Officers of Local Authorities

The Charity Commission has published a letter to Chief Executive officers of Local Authorities requesting they take action to ensure their organisation’s are complying with their duties when operating as a charity Trustee.

There has been a significant increase in the non-compliance of Local Authorities regarding their legal duties as charity Trustees which has resulted in action being taken with significant numbers of complaints being received from the
public. Such cases can be costly and resource intensive for both Local Authorities and for the regulator. Often these changes, if not made correctly, will also result in additional budget pressures on Local Authorities rather than providing the additional resources initially thought.

The most common issues noted are regarding the change of use or status of charitable land and the process of disposing of it. The letter links readers to specific Local Authority guidance, which detailed the required action that should be taken, which has been summarised below:

1. Gain an understanding of the charitable assets that they own or manage. This will ensure that it is always clear to employees and elected representatives which assets are subject to charity law.
2. Familiarise yourself with the different legal requirements and legal restrictions regarding charitable assets.

Whilst addressed to the CEOs of Local Authorities, the letter and associated guidance is of relevance to Trustees of charities, and Trustees of recreation ground charities in particular – for whom specific recreation ground charities guidance has also been updated.