Draft Protection of Charities Bill

A draft of the Protection of Charities Bill, announced in the Queen’s Speech in June, has been published by the government.

The new legislation will give the Charity Commission a range of extra powers, including the ability to disqualify people it considers unfit from being a charity trustee, and to force the closure of charities in which mismanagement poses a threat to public trust in the sector.

Measures in the new bill include banning people with certain criminal convictions, including terrorism or money laundering, from being a charity trustee. The commission will also be able to disqualify a person from being a trustee where the Charity Commission considers them unfit. In addition, the law will close various loopholes in commission powers, such as trustees being able to resign in order to avoid removal and disqualification.

There will also be a new power for the regulator to require a charity subject to a statutory inquiry to shut down where there has been misconduct or mismanagement and allowing the charity to continue would risk undermining public trust and confidence in charities. A further new power is for the regulator to give an official warning to charities in less serious cases.