Connections with non-charitable organisations
The Charity Commission has opened a consultation to gain an insight into charities and their relationships with connected non-charitable organisations. The consultation asks charities for their opinion on draft guidance in relation to maintaining connections with non-charities.
Whilst the Commission notes that it is not a concern in principle for charities to have close connections with entities such as trading subsidiaries or charities established by commercial businesses, trustees must ensure that they do not jeopardise their legal duties in maintaining such relationships.
The draft guidance asserts that charities must preserve their separation and independence from non-charitable organisations so that the public are able to easily distinguish between the two.
Charities should also identify and manage the risks that may arise from the charity’s association with the non-charity and identify any conflicts of interests and loyalty when making decisions.
It is fundamental that charities are accountable for any relationships they may have with other organisations and that they therefore comply with all relevant accounting and reporting requirements.
The consultation will close on 15th May 2018 at 5pm.