Adapting to changes for the disposal of charity land

26/07/2023

The most recent set of changes from the Charities Act 2022 came into force on 14 June 2023, with the aim of reducing the administrative burden on charities.

Amongst this, significant legislative amendments have been made relating to the sale, transfer, or lease of charity land.

If you play an active role in a charity, you need to get to grips with the new rules.

Who can advise on the land disposal?

If you are planning to dispose of land, you must get a report from a designated adviser.

One of the most remarkable changes has been the expansion of the pool of who can be a designated adviser.

Under the new rules, designated advisers must act exclusively for the charity and be a fellow of one of the following:

• Royal Institution of Chartered Surveyors
• The Central Association for Agricultural Valuers (CAAV)
• NAEA Propertymark

Trustees, officers or employees can now be designated advisers (if they meet the necessary requirements and do not have any conflicts of interest).

What are the next steps for charity land disposal?

After receiving this report, you must consider the recommendations and be satisfied with the proposed terms before continuing with the sale.

Previously, charities would have required Charity Commission authority before disposing of the land, unless there were exceptions.

However, under the updated rules, charities will only need to get Charity Commission authority in certain circumstances, such as if they don’t follow the above steps.

More information can be found here.

What other changes should you be aware of?

Another significant change is that trustees can now decide how to advertise the disposal of land, rather than being guided by a surveyor.

The requirement to obtain Charity Commission authority before granting a residential lease to a charity employee has also been removed for short periodic or fixed-term tenancies.

How does this impact your charity?

Essentially, these changes give you more autonomy over what you do with your charity’s land.

By removing requirements, such as applying for Charity Commission authority, you can save considerable time which can be reallocated to the day-to-day running of the charity.

You can also benefit from having advisers with more knowledge of your charity, which can lead to a more informed decision on whether the disposal is right for your charity.

Keeping on top of this ever-changing regulatory environment, as well as understanding and responding to these shifts isn’t easy, but it is essential.

With our guidance, you will be updated on the latest changes so all your decisions are informed correctly.

Need support to adapt your charity’s operations to regulatory changes? Contact us today.