New guide for local authorities that are charity trustees

Charity Commission and LGA joint publication

(Immediate Release - 15 October 2009)

A new guide is published today for all local authorities that are sole trustees of charities to help them fulfil their duties and responsibilities in accordance with charity law. The guide is produced by the Local Government Association (LGA) and the Charity Commission, the independent regulator of charities in England and Wales.

Many local authorities hold assets which are subject to charitable trusts, such as recreation land or property, often as a result of something being gifted to a council in a will for public use. The new guide is intended to help councils and council members fulfil this role responsibly, and to help avoid any financial or reputational issues that may occur if things go wrong.

The guide includes:

• Useful fictitious case studies of likely scenarios for local authorities
• Explanations of key terms and signposting to relevant Charity Commission guidance
• Advice on managing charitable trusts safely and top tips for councils

Andrew Hind, Chief Executive of the Charity Commission said:

“It is very important that local authorities understand their roles and responsibilities as sole trustees of charities, to ensure that any assets they hold are applied in line with charity law. There is often a lot of public interest in such matters. I would recommend highly that all local authorities with these responsibilities read this short guide and also take note of other relevant guidance that is listed.”

Cllr Margaret Eaton, Chairman of the Local Government Association said:

“Charity law can be complex and it's important that councils are clear about their responsibilities when they are trustees for land or assets. 

We have developed this joint guide with the Charity Commission to help authorities manage charitable trusts effectively and avoid some of the pitfalls that can occur”.

The four-page guide is available at www.charitycommission.gov.uk and www.lga.gov.uk

Ends.

Notes to Editors

1. The Charity Commission is the independent regulator of charities in England and Wales. See www.charitycommission.gov.uk for further information or call our contact centre on 0845 300 0218. Our mission is: to ensure charities’ legal compliance, enhance charities’ accountability, encourage charities’ effectiveness and impact and to promote the public interest in charity.
   
2. The 423 authorities who make up the Local Government Association cover every part of England and Wales. Together they represent over 50 million people and spend around £113 billion a year on local services.