Last amended by Charities Act 2022 in 2022. Reformed rules on charity land sales, permanent endowment, ex gratia payments, and trustee remuneration to give charities more flexibility.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Summary
The Charities Act 2011 consolidates charity law in England and Wales, defining 'charity' and 'charitable purposes', establishing the Charity Commission's powers, and setting out requirements for registration, accounting, and reporting. It codified the 13 descriptions of charitable purposes for the first time.
Key Points
- Defines charity as an institution established for exclusively charitable purposes (s.1)
- Lists 13 descriptions of charitable purposes including relief of poverty, education, religion, health (s.3)
- Requires all charitable purposes to be for the public benefit (s.4)
- Establishes registration requirements with the Charity Commission (Part 4)
- Sets out trustee duties, accounting requirements, and annual returns (Part 8)
- Gives Charity Commission powers of inquiry, suspension, and scheme-making (Part 6)
- 13 statutory descriptions of charitable purposes (s.3) — including prevention of poverty, advancement of education, religion, health, arts, amateur sport, human rights, environmental protection, and relief of those in need
- Public benefit requirement — every charitable purpose must be for the public benefit; no presumption of public benefit (s.4)
- Charity Commission — registrar and regulator of charities; powers of inquiry and enforcement (Part 4)
- Registration required for most charities with income over £5,000 (s.30)
- Cy-près doctrine — application of charity property to similar purposes where original purpose fails (Part 6)
- Charity trustees — duties of prudence, care, and compliance with governing document and charity law
- Excepted and exempt charities — certain charities not required to register (e.g., churches, universities)
- 13 descriptions of charitable purposes (s.3)
- Public benefit requirement — not presumed (s.4)
- Charity Commission: registration, regulation, and advice (Part 2)
- CIO: limited liability without dual regulation (Part 11)
- Trustee duties and powers
- Annual reporting and accounting requirements
Parts & Sections
Amendments History
2022 — Charities Act 2022
Reformed rules on charity land sales, permanent endowment, ex gratia payments, and trustee remuneration to give charities more flexibility.
2022 — Charities Act 2022
Simplified procedures for amending governing documents, widened powers for ex gratia payments, and reformed cy-près applications.
2022 — Charities Act 2022
Simplified various administrative processes and strengthened the Charity Commission's powers.
Frequently asked questions
- What is the legal definition of a charity under the Charities Act 2011?
- The Charities Act 2011 defines a charity as an institution established for exclusively charitable purposes. It must also be subject to the control of the High Court in its jurisdiction over charities. The Act consolidates charity law in England and Wales, setting out requirements for registration, accounting, and reporting, while establishing the powers of the Charity Commission.
- What are the thirteen descriptions of charitable purposes?
- The Act lists thirteen statutory descriptions of charitable purposes. These include the prevention or relief of poverty, advancement of education, religion, health, citizenship, arts, amateur sport, human rights, environmental protection, relief of need due to disability or age, animal welfare, efficiency of armed forces, and other recognised charitable purposes.
- Is there a presumption that a charitable purpose is for the public benefit?
- No, the Act does not presume that a purpose is for the public benefit. Section 4 explicitly requires that all charitable purposes must be for the public benefit. This means the public benefit requirement must be actively demonstrated and is not automatically assumed for any organisation claiming charitable status.
- Which charities must register with the Charity Commission?
- Most charities with an income over £5,000 are required to register with the Charity Commission. However, certain 'excepted' or 'exempt' charities, such as some churches and universities, are not required to register. The Charity Commission acts as the registrar and regulator for these organisations.
- What are the main duties of charity trustees?
- Charity trustees have duties of prudence, care, and compliance. They must adhere to the charity’s governing document and charity law. The Act also sets out specific accounting requirements and the need for annual returns to ensure transparency and proper management of the charity’s resources.