Charities Act 2011 - legislation

1 Charities Act 2011 CHAPTER 25 Charities Act 2011 CHAPTER 25 CONTENTSPART 1 MEANING OF CHARITY AND CHARITABLE PURPOSE CHAPTER 1 GENERALC harity1 Meaning of charity Charitable purpose2 Meaning of charitable purpose 3 Descriptions of purposes4 The public benefit requirementRecreational trusts and registered sports clubs5 Recreational and similar trusts, sports clubsSupplementary7 Application of this Chapter in relation to Scotland8 Application of this Chapter in relation to Northern Ireland9 InterpretationCharities Act 2011 (c. 25)iiCHAPTER 2 SPECIAL PROVISION FOR THIS ACT10 Ecclesiastical corporations etc. not Charities in certain contexts11 Charitable purposes12 Directions as to what is (or is not) a separate charityPART 2 THE CHARITY COMMISSION AND THE OFFICIAL CUSTODIAN FOR CHARITIESThe Commission13 The Charity Commission14 The Commission s objectives15 The Commission s general functions16 The Commission s general duties17 Guidance as to operation of public benefit requirement18 Supply by Commission of copies of documents19 Fees and other amounts payable to Commission20 Incidental powersThe official custodian21 The official custodian for charitiesPART 3 EXEMPT Charities AND THE PRINCIPAL REGULATORE xempt charities22 Meaning of exempt charity and to amend so as to add or remove exempt charities24 Power to remove defunct institutions from principal regulator25 Meaning of the principal regulator 26 General duty of principal regulator

2 In relation to exempt charity27 Power to make amendments in connection with to consult principal regulatorPART 4 REGISTRATION AND NAMES OF CHARITIESThe register29 The registerCharities Act 2011 (c. 25)iiiCharities required to be registered30 Charities required to be registered: general31 Restrictions on extending the range of excepted Charities to alter sums specified in (2)33 Power to repeal provisions relating to excepted charitiesRemoval of Charities from register34 Removal of Charities from registerRegistration: duties of trustees and claims and objections35 Duties of trustees in connection with registration36 Claims and objections to registrationEffect of registration and right to inspect register37 Effect of registration38 Right to inspect registerDisclosure of registered charity status39 Statement required to be made in official publications to alter sum specified in (1)41 OffencesPower to require charity s name to be changed42 Power to require name to be changed43 Duty of charity trustees on receiving direction under of name not to affect existing rights and obligations of name where charity is a companyPART 5 INFORMATION POWERSI nquiries instituted by Commission46 General power to institute inquiries47 Obtaining evidence etc.

3 For purposes of inquiry48 Power to obtain search warrant for purposes of inquiry49 Execution of search warrant50 Publication of results of inquiries51 Contributions by local authorities to inquiries into local charitiesPower to call for documents and search records52 Power to call for documents53 Power to search recordsDisclosure of information54 Disclosure to Commission: generalCharities Act 2011 (c. 25)iv55 Disclosure to Commission: Revenue and Customs information56 Disclosure by Commission: general57 Disclosure by Commission: Revenue and Customs information58 Disclosure to and by principal regulators of exempt charities59 Disclosure: supplementarySupply of false or misleading information to Commission of false or misleading information to Commission 6CY-PR S POWERS AND ASSISTANCE AND SUPERVISION OF Charities BY COURT AND COMMISSIONCy-pr s powers and variation of charters61 Duty of trustees in relation to application of property cy-pr s62 Occasions for applying property cy-pr s63 Application cy-pr s: donor unknown or disclaiming64 Donors treated as unidentifiable65 Donors treated as disclaiming66 Unknown and disclaiming donors.

4 Supplementary67Cy-pr s schemes68 Charities governed by charter, or by or under statutePowers of Commission to make schemes s concurrent jurisdiction with High Court for certain purposes70 Restrictions on Commission s concurrent jurisdiction71 Exercise of Commission s concurrent jurisdiction: notice72 Power to alter sum specified in (3)73 Powers to make schemes altering provision made by Acts, on expenditure on promoting Bills75 Further powers to alter application of charitable propertyPowers of Commission to act for protection of Charities of trustees etc. and appointment of interim managers77 Offence of contravening certain orders under managers: supplementary79 Removal of trustee or officer etc. for protective etc. purposes80 Other powers to remove or appoint charity trustees81 Removal or appointment of charity trustees etc.

5 : supplementary82 Removal of trustees etc.: notice83 Power to suspend or remove trustees etc. from membership of charity84 Power to direct specified action to be taken85 Power to direct application of charity property86 Copy of certain orders, and reasons, to be sent to charity87 Supervision by Commission of certain Scottish charitiesPublicity relating to schemes and orders88 Publicity relating to schemesCharities Act 2011 (c. 25)v89 Publicity for orders relating to trustees or other individualsProperty vested in official custodian90 Entrusting charity property to official custodian, and termination of trust91 Supplementary provisions as to property vested in official custodianOfficial custodian and Reverter of Sites Act 198792 Divestment of official custodian where 1987 Act due to operate93 Divestment of official custodian where 1987 Act has operated94 Vesting of land in relevant charity trustees following divestment95 Supplementary provisions in connection with 1987 ActEstablishment of common investment or deposit funds96 Power to make common investment schemes97 Bodies which may participate in common investment schemes98 Provisions which may be included in common investment schemes99 Further provisions relating to common investment schemes and funds100 Power to make common deposit schemes101 Bodies which may participate in

6 Common deposit schemes102 Provisions which may be included in common deposit schemes103 Further provisions relating to common deposit schemes and funds104 Meaning of Scottish recognised body and Northern Ireland charity Power to authorise dealings with charity property, ex gratia payments to authorise dealings with charity property to authorise ex gratia payments to give directions about dormant bank accounts of charities107 Power to direct transfer of credits in dormant bank accounts108 Accounts which cease to be dormant before transfer109 Dormant bank accounts: supplementaryAdditional powers of Commission110 Power to give advice111 Power to determine membership of charity112 Power to order assessment of solicitor s billLegal proceedings relating to charities113 Petitions for winding up Charities under Insolvency Act114 Proceedings by the Commission115 Proceedings by other personsSupplementary116 Effect of provisions relating to vesting or transfer of propertyCharities Act 2011 (c.)

7 25)viPART 7 CHARITY LANDR estrictions on dispositions of land in England and Wales117 Restrictions on dispositions of land: general118 Meaning of connected person in (2)119 Requirements for dispositions other than certain leases120 Requirements for leases which are for 7 years or less restrictions where land held for stipulated purposes122 Instruments concerning dispositions of land: required statements, land and land registrationRestrictions on mortgages of land in England and Wales124 Restrictions on mortgages125 Mortgages: required statements, of charity land and land registrationRelease of charity rentcharges127 Release of charity rentcharges128 Power to alter sum specified in (2)Interpretation129 InterpretationPART 8 CHARITY ACCOUNTS, REPORTS AND RETURNSCHAPTER 1 INDIVIDUAL ACCOUNTS130 Accounting records131 Preservation of accounting records132 Preparation of statement of accounts133 Account and statement an option for lower-income charities134 Preservation of statement of accounts or account and statement135 Charitable companies136 Exempt charitiesCHAPTER 2 GROUP ACCOUNTS137 Accounting records138 Preparation of group accounts139 Exceptions to requirement to prepare group accounts140 Preservation of group accounts141 Parent charity , subsidiary undertaking and group Charities Act 2011 (c.

8 25)vii142 Group accounts 143 Exempt charitiesCHAPTER 3 AUDIT OR EXAMINATION OF ACCOUNTSA udit or examination of individual accounts144 Audit of accounts of larger charities145 Examination of accounts an option for lower-income charities146 Commission s powers to order audit147 Accounts required to be audited under Companies Act148 NHS Charities : general149 Audit or examination of English NHS charity accounts150 Audit or examination of Welsh NHS charity accountsAudit or examination of group accounts151 Audit of accounts of larger groups152 Examination of accounts an option for smaller groups153 Commission s powers to order audit of group accountsRegulations relating to audits and examinations154 Regulations relating to audits and examinations155 Power of Commission to direct compliance with certain regulationsDuty of auditors etc.

9 To report matters to Commission156 Duty of auditors etc. to report matters to Commission157 Meaning of connected institution or body in (2)158 Application of duty in relation to auditors etc. of group accounts159 Application of duty in relation to Companies Act auditorsExempt and excepted charities160 Exempt charities161 Excepted charitiesCHAPTER 4 ANNUAL REPORTS AND RETURNS AND PUBLIC ACCESS TO ACCOUNTS reports trustees to prepare annual reports163 Transmission of annual reports to Commission in certain cases164 Documents to be transmitted with annual report165 Preservation of annual reports reports and group accounts167 Exempt charities168 Excepted charitiesCharities Act 2011 (c. 25)viiiAnnual returns169 Annual returns by registered charitiesAvailability of documents to public170 Public inspection of annual reports etc.

10 Kept by Commission171 Supply by charity trustees of copy of most recent annual report172 Supply by charity trustees of copy of most recent accountsOffences173 Offences of failing to supply certain documentsCHAPTER 5 POWERS TO SET FINANCIAL THRESHOLDS174 Powers to alter certain sums specified in this Part175 Aggregate gross income of group176 Larger groups: relevant income threshold and relevant assets threshold PART 9 CHARITY TRUSTEES, TRUSTEES AND AUDITORS of charity trustees 177 Meaning of charity trustees Disqualification of charity trustees and trustees178 Persons disqualified from being charity trustees or trustees of a charity179 Disqualification: pre-commencement events : exceptions in relation to charitable companies181 Power to waive disqualification182 Records of persons removed from office183 Criminal consequences of acting while disqualified184 Civil consequences of acting while disqualifiedRemuneration of charity trustees and trustees of charity trustees or trustees etc.