Charity and Public Law

EDB has had years of working with the "not for profit" and charity sector. We can advise on charity formation and the duties of directors and trustees, employment and property matters, as well as commercial contracts and related obligations.

We have advised major national charities on a number of complex matters. Recently, we acted for clients on the outsourcing from a local authority of various children's' services functions, involving a series of contracts, guarantees and indemnities. We have also advised on the competition issues involved with the services carried out for various local authorities.

A new form of charitable structure was announced in the Charities Act 2006, called the "Charitable Incorporated Organisation". A consultation exercise has been carried out and the draft regulations and model constitution that will introduce "CIO's" are now being amended. The new legal structure will be an alternative to incorporation under the Companies Acts and will not require regulation under both Charities and Companies legislation. Less onerous accounting and reporting requirements are also expected.

At the moment, it is still being suggested that CIO's will be introduced in late spring, probably in two stages with new incorporations only being able to take advantage of the new structure at first.

We will continue to monitor developments for clients in this important area.