The Charity Commission (England and Wales) has produced draft guidance for charities which want to give money to an organisation that isn’t a charity.
The guidance brings together into one place all the existing key principles for trustees to base their decisions on from other existing pieces of guidance. It follows the controversy around the funding of advocacy group Cage by Joseph Rowntree Charitable Trust and the Roddick Foundation.
See Civil Society News article or Commission news release. Or direct to ‘Draft Guidance: Grant funding an organisation that isn’t a charity‘. Any comments on the draft should be submitted by 8th April – although this is not a formal consultation.
Comment from Rosamund McCarthy of solicitors Bates Wells Braithwaite:
“It is helpful that the draft guidance recognises important principles relating to trustee discretion and proportionality. The guidance could, however, be augmented with more detail relating to the funding of individuals, social enterprises (particularly in relation to private benefit) and public or quasi-public bodies as well as overseas entities. The BWB response to the consultation will also argue that the section of funding core costs is not a correct statement of the law, and this is a very important area that requires clarification.”