Charities monthly round-up – April 2025

As the days grow longer and the sunshine peeks through, we’re here to brighten your inbox with the latest charity sector news. From large antique donations to Prince Harry’s latest headlines, we’ve got everything you need to stay ahead this month. Let’s dive in!

Can you spot a fake Charity Commission letter?

With fraud on the rise, churches and charities are now being targeted more than ever. The Charity Commission (the Commission) recently warned charities against fraud. Fraudulent letters requesting actions to be taken such as the removal of trustees, release of funds or provision of documents such as passports or utility bills have been sent out on the Commission’s behalf. The Commission has reported these incidents to Action Fraud and is monitoring the situation. They have provided some useful tips on how to look out for fraud.

Charity trustees have a legal duty to safeguard their charity’s assets and fraud prevention is a key part of managing resources responsibly. With fraud threats becoming increasingly sophisticated, it’s more important than ever for trustees to take proactive steps to protect their organisations. That means raising awareness of common fraud risks, reviewing internal procedures and making sure safeguards are fit for purpose.

Remember, if you doubt the authenticity of correspondence claiming to be from the Commission, you can contact the Commission directly to verify.

Charity finances under the spotlight: What the new risk assessment means for you

Rising costs and fluctuating donation levels are increasing pressure on charities, alongside growing demand for services and ongoing challenges in securing sustainable public funding. In response, the Commission is conducting its first-ever sector-wide risk assessment to evaluate financial resilience across the sector.

What does this mean for you? The assessment aims to give trustees and charity leaders a clearer picture of the financial risks affecting the sector, helping to inform decision-making and strengthen risk management. According to Amie McWilliam Reynolds, assistant director of intelligence and tasking at the Commission, the findings will support charities in reviewing their risk registers and seeking guidance from the Commission where necessary. The report will also offer practical advice on managing key risks effectively. Identifying and addressing risks is essential for ensuring a charity’s long-term sustainability and its ability to serve beneficiaries effectively. By strengthening risk management strategies, charities can safeguard their financial health, maintain public trust and continue delivering vital services in an increasingly uncertain landscape.

Governance lessons from Prince Harry’s resignation at Sentebale

Unless you have been blissfully disconnected from the news cycle, readers will likely be aware that Prince Harry and co-founder Prince Seeiso of Lesotho recently stepped down from Sentebale, the Lesotho-based HIV and Aids charity they co-founded. This news came following a breakdown in the relationship between the charity’s trustees and the chair, Dr Chandauka.

In the days that followed their departure, Dr Chandauka defended her leadership, citing the significant challenges posed to the charity by the negative impact of Prince Harry’s public image. Whilst the details of the situation remain in dispute, this situation highlights an important lesson for charities about the critical need for strong, positive relationships between trustees and leadership. Conflicts or misalignments can jeopardise the charity’s work, underscoring the importance of effective governance and clear communication within charitable organisations.

Here are the key lessons charities can learn from Prince Harry’s resignation from Sentebale:

• Effective communication is key: Open, transparent communication between trustees and leadership is essential for maintaining strong, functional relationships and a united mission.
• Alignment of values and commitment: Trustees should be fully committed to the charity’s goals and ready to engage actively in its work. Misalignments can lead to significant disruptions.
• Managing public perception: Charities must be mindful of how the public perception of high-profile figures can impact internal dynamics and the charity’s reputation.

The story may also serve as a timely reminder of a broader principle: the importance of addressing issues as early as possible to prevent them from escalating. Whether it’s interpersonal tensions, concerns about board member conduct or blurred boundaries between roles, issues left unaddressed can evolve into deeper cultural problems that are harder to unravel later on. Taking early, proactive steps can help prevent long-term damage to trust, governance and the overall health of the organisation.

Charity registrations: Mind the gap

New figures from the Commission’s casework and registrations data reveal that while 7,249 applications to register charities were submitted so far this year, only 3,839 successfully made it through. That’s nearly half missing the mark.

It’s a useful reminder that registering a charity isn’t just a box-ticking exercise. The Commission is being increasingly rigorous, especially around public benefit and governance. So, if you are planning to set up a new charity, a strong application is essential. Whilst the bar is high – it is not unreachable with the right preparation.

If you have any queries about how to make a successful application to register, contact Katie Crosbie.

Business rates reform and its impact on charities

The Chancellor’s Spring Statement reaffirmed that business rates are set to undergo significant reform, with plans for digital modernisation by 2028. While charities will retain their existing reliefs, there may still be practical implications for how business rates are assessed and administered.

Charities relying on business rates relief, especially those with retail shops, offices, or community spaces, should be aware that local councils have discretion in awarding full relief. Any shifts in local policy or assessment criteria could impact your charity’s finances.

To stay ahead, regularly check your charity’s rateable value, review eligibility for relief and engage with local authorities about potential changes. Proactive steps now can help avoid unexpected costs in the future. We’ll keep you updated as the reforms progress and if you need guidance navigating these changes please get in touch.

Listed Places of Worship Grant Scheme

The Listed Places of Worship Grant Scheme supports listed places of worship in maintaining their buildings. A £25,000 annual cap was introduced on 1 April 2025 limiting how much can be claimed per year for repairs and maintenance. This cap applies to any work carried out at listed places of worship, including churches, synagogues, mosques and temples.

If your charity is responsible for maintaining a listed building and submitted a claim by 11:59pm on 31 March 2025, that claim will not be subject to the cap. However, any claims submitted after this deadline will be capped. For more details, read the official guidance.

Recycling rules are changing – Is your charity ready?

The Government’s Simpler Recycling initiative was introduced on 31 March 2025. This initiative means all workplaces in England, including charities, must follow new rules on waste separation, including separating recyclables like paper, card, plastic, metal and glass, as well as food waste, from general rubbish. If your charity produces garden waste (hello, community gardens!), this will need separate treatment too.

The aim? Consistency across the board and less landfill. Micro-charities with fewer than 10 staff have until 2027 to comply, but for most, it’s time to start preparing.

This change is a great opportunity to refresh your sustainability practices. Whether you’re running a charity shop, office, or community hub, setting up clear systems now can help you avoid a last-minute scramble and showcase your commitment to the environment.

Top tip: get your team involved early, talk to your waste provider and update your policies. Good governance includes good green habits.

If you or your charity would like any assistance with your sustainability practices, please contact Gayle Monk or Alex Lawrence in our projects team.

Strengthening safeguarding practices: Key lessons from the recent House of Commons debate

It’s always disheartening when another abuse or scandal story emerges, especially involving organisations meant to protect vulnerable people. These incidents are a stark reminder that safeguarding must remain a top priority for charities.

A recent House of Commons debate has put safeguarding under the spotlight, focusing on the Church of England’s handling of abuse cases. Throughout the debate, MPs shared the stories they had heard from their constituents who were survivors of such abuse. These accounts included shared themes such as the lack of justice, accountability and transparency and called for truly independent safeguarding systems.

For charities, the message is clear: strong safeguarding isn’t just about policies, it’s about culture. Trust, transparency and accountability must be embedded in every part of your organisation.

Now’s a good time to review safeguarding frameworks, ensure trustees and staff are properly trained and consider how your processes can be made more independent and survivor-focused. Getting safeguarding right is crucial, not just for compliance, but for protecting those you exist to serve.

If you or your charity would like any assistance with your safeguarding frameworks, please contact Edwina Turner.

Big gifts, big questions: £1 billion transfer to British Museum approved

This month, the Commission gave the green light to a jaw-dropping £1 billion art collection being transferred to the British Museum from the late Sir Joseph Hotung’s estate; one of the largest in UK history.

This matter serves as a reminder of the importance of good governance around major donations. In its press release on the decision, the Commission shared insights on its decision-making process in this matter, highlighting the scrutiny required to ensure the transfer aligned with both the donor’s wishes and the charity’s purpose – a process worth remembering the next time your charity receives a large or unusual gift.

While most charities won’t be juggling billion-pound gifts anytime soon, it’s key to have clear policies on gift acceptance and to understand your obligations when managing any high-value or complex assets. And if a long-lost benefactor ever leaves you a priceless relic – make sure it’s more than just museum-worthy; make sure it’s governance-ready too!

If you have any governance queries relating to museums or cultural institutions, please contact Shauntelle Murphy or David Alcock.

Compliance toolkit – Finding the right tools for the job

Would you benefit from a guide to setting up a charity bank account? Do you have questions about how to risk assess the transfer of funds? Or what about setting up partnership agreements? As well as regulating the sector, the Commission exists to ensure charities meet their legal requirements and to provide guidance for them to run as effectively as possible. Are you aware of the resources available on their website for free including analysis charts and template forms? You can subscribe to be notified when these resources are updated.

Whilst there will of course be times when bespoke guidance is needed (that’s our job!) the resources available from the Commission are a really useful starting point and may save your organisation some time and money. Over the next few months, we will post articles exploring how you can best utilise the compliance toolkit. If you’re not already subscribed to receive our blogs, you can do so here.

Employment update

Have you considered how the upcoming rise in National Minimum and Living Wages will affect your charity’s budget? With significant increases, especially for the 18-20 age group, it’s important to factor in these changes for payroll and staffing costs. Are your budgeting plans aligned with the updated wage rates coming into effect on April 1, 2025? This will ensure that your charity stays compliant while managing its financial sustainability. For the latest rates and details, visit the Government website.

For more information or advice on the topics raised in this month’s newsletter, please contact Shauntelle Murphy. Shauntelle is a solicitor in our governance team and advises a broad range of clients across the charity, social business and housing sectors.

Shauntelle supports charities, not-for-profit and community-led organisations with governance queries, constitutional changes, board matters and regulatory compliance. She has particular experience advising social enterprises and charities on incorporation, structuring and governance models and assisting with ongoing board and membership issues. In the housing sector, she regularly works with housing associations on governance updates, constitutional reviews and regulatory engagement, particularly in response to changes in the social housing regulatory framework.

Shauntelle enjoys working closely with clients to understand how their governance fits within the bigger picture of their mission, relationships and day-to-day operations and she has a keen interest in the way good governance can support long-term sustainability and impact.

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