Update on Public Benefit Requirements

Are you ready to report on public benefit?

The public consultation period for the supplementary guidance document on public benefit published by the Charity Commission closes on Friday 11th July.  For the categories of Prevention or Relief of Poverty and Advancement of Religion, the period has already closed.  Final versions of this guidance will be published by the end of the year but more importantly, you will need to start considering the implications of the requirements to show that the charity's aims are for the public benefit.  

Charity trustees now have a duty to report the charity's public benefit in the Annual Report.  Although you are likely to currently report on the charity's activities, you will have to set this in the context of the charity's aims to show how these aims deliver public benefit.  If you are below the audit threshold you have the option of providing a brief summary or a fuller statement.  If above (if the charity's gross income exceeds £500,000 in the year or where income exceeds £100,000 and the asset value exceeds £2.8 million), then the report will need to include full details of the charity's achievements measured by reference to the aims and objectives of public benefit. 

Remember that the Charity Commission will carry out research on existing charities to establish how well they meet with the new requirements.  For new charities, the Charity Commission will review the aims to ensure these are for the public benefit.

For further information, see the guidance published by the Charity Commission or contact us for support.