Changes to Charity Law (April 2024)
Changes to Charity Law (April 2024)
OSCR is modernising and improving their systems to reinforce and facilitate the expectations outlined in The Charities (Regulation and Administration) (Scotland) Act 2023. Before the passing of this law, Scotland’s charity regulations were 18 years old and getting out of date in terms of their practicality and rigour – especially in comparison to other countries in the UK.
Some changes have already gone into effect as of April 2024, and more are coming in 2025. All the changes are designed to increase accountability and transparency for charities and for OSCR. While charities should already be transparent and accountable to the public, these legislative changes are formalising these expectations; they are intended to protect both charities and the public from bad actors.
What is Changing And Why:
What Will Not Change:
- OSCR’s role as a regulator
- Duties of trustees
- Accounting and reporting requirements
- The Charity Test and purposes
- OSCR’s existing powers
- The 2005 Act
Database of Charity Trustees
OSCR will keep an internal database of charity trustees. The data provided on charity trustees will help OSCR verify identity and carry out its regulatory duties. Only the names of the trustees will be publicly available. Exemption for publishing a trustee’s name can be arranged if where there is a risk to personal safety or security of premises.
Many funding bodies – including the TSI – need to confirm the names and number of trustees in order to dispense funds. Therefore, this change will streamline the lines of accountability and reporting. Data on trustees will need to be entered via OSCR’s online portal.
Automatic Disqualification of Charity Trustees
The internal database will also help protect against bad actors becoming trustees of charities. With the passing of the new Act, the list of convictions that result in automatic disqualification from charity trustee posts has expanded.
The database of charity trustees mentioned above will help protect against individuals with the above convictions becoming charity trustees. Remember, these have to be convictions from a court, not someone generally being perceived to be dishonest or negligent.
Disqualification of Senior Managers
The new legislation extends the list of automatic disqualifications above to any individual employed in a senior management role at a charity. Senior management means:
- Anyone whose role is related to the management of the charity and who is accountable only to charity trustees
- Anyone whose role involves control over charity finances and is accountable only to a senior manager
- Anyone whose role involves control over charity finances and is accountable only to trustees
OSCR can waive this disqualification in exceptional circumstances. For example, someone may have convictions listed in the previous section but excel in charity employment because of lived experience.
Publishing Charity Accounts
All registered charities must submit their accounts to OSCR on an annual basis. For transparency, OSCR will now be publishing these accounts including the last 5 reporting periods. These accounts will be unredacted, but special dispensation can be given to redact trustee names.
The format and deadlines for account reporting will not change. The onus is on charities to ensure that accounts are ‘publication ready’.
Getting Ready
While it is the Scottish Government that outlines the legislation and OSCR who enforces it. If you are struggling to meet these new requirements, OSCR is always willing to help and support, you can contact them here.
