Charities

The concept of charity has long been embodied in English Law. Arguably, it was first enshrined in statute in the Charitable Uses Act of 1601. The Act defines ten legitimate purposes. Among them are the following: "The relief of aged, impotent and poor people, the education and preferment of orphans and the marriages of poor maids".

The charitable purposes set out in the preamble to the Act of 1601 were regarded as definitive for many years but charity is an evolving concept, as reflected by the legislation of the subsequent centuries. "Public benefit" was introduced as a test for charitable purposes and the recent Charities Act seeks to further reshape the concept of charity in a modern world.

Philanthropy remains at the heart of civilised society and it is embodied in our legal system. Charities must be properly created and run according to the law in order to function properly. The Charity Commission with whom we work closely provides clear guidance to charities but they will continue to need lawyers who can tailor their services to meet their particular needs.

How can we help

The role of charity Trustees can be onerous and demanding as well as rewarding. They usually work as volunteers and they have duties of prudence and care in relation to financial management and investment and must use reasonable skills and care in this work avoiding activities which place the charity and its funds at risk. They should consider obtaining external professional advice on all matters where there may be a material risk to the charity. In this way they can protect themselves from liability or breaches. We can assist in the following ways:

Creation and Registration of Charities

We can advise on all aspects of the process of registration. In order to pass the test of "charitable purposes" an organisation must fulfil certain criteria. It is vital that the objects of the charity are carefully drafted in the governing document and we can provide guidance here. An embryonic charity also needs to consider whether it should be formed as a trust or a company and will need to give thought to the implications of that decision.

Guidance to Trustee

We have a highly experienced team of private client lawyers who have a good knowledge of charity law and who can advise Trustees on the extent of their powers and their duties in accordance with the law and the terms of the charity's own governing document.

Investment and Accounts

Trustees have special duties in respect of investment and there are often specific provisions in the charity's governing document relating to this. Charitable investment is a specialist topic and whilst we do not provide investment advice, we have links with bankers and brokers who can assist. We can also assist with the preparation of accounts and submission of these to the Charity Commission.

Diputes

Sadly, disputes arise in every organisation from time to time and we have a skilled litigation team who can assist in the following areas:

     (a)     Employment - Charities often act as employers and we can provide advice on all
               aspects of employment disputes.

     (b)     Will Disputes - Charities rely heavily on legacies in Wills for their income. Often disputes
               arise in relation to the administration of an estate or the charity requires advice on the
               terms of the Will. We have specialist contentious probate practitioners who can
               assist in this.

     (c)     Trustee Disputes - We can act in relation to disputes between individual Trustees or
               on behalf of the charitable Trustees against third parties. We also provide a dispute
               resolution service as part of our litigation department, offering mediation.

     (d)     Appeals to Charities Tribunal - The Charities Act 2006 set up a new Charities
               Tribunal to deal with appeals against, and reviews of decisions, by the Commission. 
               Importantly, this creates a new layer to the legal process. It will take about a year to set up 
               the Tribunal but, once this has been done, charities will need advice on how to bring
               proceedings. We can advise on all stages of the process.

Property Matters 

Charities are often large land owners. The firm has long acted for a number of leading charities in relation to their property dealings. Charity Trustees have special duties in relation to land and must act to protect any charity property. In selling land charities will need to obtain a surveyor's report as to value and in some circumstances an order from the Charity Commission. Again we advise on all aspects of land transactions by the charity.

Formation of Companies and Commercial Transaction

As set out above, charites will often form themselves as limited companies. We have a highly skilled commercial department who can assist charity Trustees in all aspects of corporate work.

And Finally........

At Vizards Tweedie we recognise the importance of charities. We act for a large number of organisations from national charities to small endowments. We also advise clients who wish to leave money to charities in their Wills or to structure charitable giving in a tax efficient way. We have a team of highly experienced lawyers who are on hand to deal with any aspects of the charitable administration.

Partners

Ron Perry
Tony Millson
Christine Green
Lynne Brooke
John Burden