Introduction to the Charities Act

The Charities Act 2005 (“the Act”) was passed in April 2005. The Act established the Charities Commission (“the Commission”) which came into being on 1 July 2005.

The Commission’s main functions are: 

• to establish and maintain a registration and monitoring system for charitable organisations
• to provide support and education to the charitable sector on good governance and management.

Registration under the Act began on 1 February 2007 when the Charities Register (“the Register”) opened. The Commission helps organisations that want to register by providing plain language information about the Act and how to apply to register under the Act.

You can see a copy of the Charities Act 2005 on the government legislation website or buy a copy from any Bennetts bookshop.

Autonomous Crown Entity

The Commission is an Autonomous Crown Entity (ACE). This means that the Commission is independent of Government but it must “have regard” for government policy when directed by the responsible Minister.

The functions of the Commission

The Act says the key functions of the Commission include:

• deciding on whether to accept an application for registration
• monitoring Annual Returns submitted by registered charities
• reporting and making recommendations to Government about charitable sector matters
• promoting public trust and confidence in the charitable sector
• encouraging the effective use of charitable resources
• educating charities about matters of good governance and management
• stimulating and promoting research about the charitable sector.