REVIEW OF BODIES WITH EXEMPT CHARITY STATUS
The Regulator of Community Interest Companies would like to draw your attention to the plans to start to bring into force the parts of the Charities Act 2006 (the 2006 Act) that specifically affect exempt charities and will require some of these charities to register with the Charity Commission.
In late 2009 some charities that have been exempt from Charity Commission regulation will lose that exemption and, if they have an income of more than £100,000, will have to apply to be entered in the Commission's register. Other charities will lose their exemption during 2010 and have to register then. If you have specified as an asset locked body one of the bodies listed below you will need to visit the Charity Commission's website to check whether the body will be required to register. If, having considered an application, the Commission decides that the organisation is not charitable you will need to pass a special resolution to remove the body from your memorandum and articles of association (you may at the same time specify a new asset locked body).
You will find all the necessary forms on our website www.cicregulator.gov.uk
Charities that will lose their exemption late in 2009 and have to register (subject to the £100,000 threshold) include:
- Universities and other higher educational institutions in Wales.
- The colleges and halls of the Universities of Cambridge, Durham and Oxford.
- University student unions in England and Wales
- Eton and Winchester Colleges.
- The Museum of London
Charities that are expected to lose their exemption during 2010 and have to register (subject to the £100,000 threshold) include:
- Further education corporations in Wales.
- Student unions of further education corporations in England and Wales
- Charitable industrial and provident societies that are not registered housing providers in England or registered social landlords in Wales.
It is proposed that charities that are currently exempt will either remain exempt with a principal regulator, or be required to register with the Commission if they have an income in excess of £100,000. Those that will not have a principal regulator and have an income of less than £100,000 will not be required to register with the Commission but will otherwise be subject to its regulation.
Exempt charities cannot register before the changes come into force.
Full details about these changes are available on the Commission's website. More general information about the 2006 Act, including the full implementation plan, is available on the Office of the Third Sector's website.
The £100,000 income threshold is only intended to be interim and the intention of the 2006 Act is that all charities, with the exception of those that have a principal regulator, will ultimatley have the same registration threshold. A review of the income thresholds in the 2006 Act will be included in the statutory review of its implementation in 2011.