Charities are being told to ensure the close relationships some enjoy with non-charitable organisations are made clear to people outside their charity and never used to advance non-charitable agendas and interests. Amid concerns that some relationships between charities and non-charities have damaged public confidence in charity, the Charity Commission has published new guidance.
The regulator recognises that many charities work successfully in close partnership with a wide variety of non-charitable organisations, such as trading subsidiaries. These relationships can be crucial in helping a charity deliver on its mission for the public benefit. The new guidance aims to help charities reap the benefits of such relationships while managing the risks carefully.
The new guidance aims to help charities reap the benefits of such relationships while managing the risks carefully. The Commission says the guidance will also allow it, and the public, to better hold charities to account against existing rules.
The new guidance does not set out new rules or regulations, but draws together relevant law and practice in setting out six principles to help trustees ensure their arrangements for working with a linked body secure the charity’s interests and independence.