Providing public benefit

The Charities Act 2006 (the Act) establishes a statutory requirement that all charities must exist for a public benefit. Previously certain charities, including those for the advancement of education and religion, were presumed to provide such a benefit. The Charity Commission (CC) has now been charged with ensuring that there is understanding and awareness of this public benefit requirement. The CC is consulting with the charity sector and the wider public and will eventually provide guidance on what the requirement means. In the meantime charity trustees should ensure that they believe:

• the objectives set out in their charity’s constitution require them to provide a public benefit
• the Trustees’ report outlines that the activities of the charity are in line with its constitution
• the annual return to the CC confirms that the charity is providing a public benefit.

These changes will take effect in 2008.