The Regulator for Charities in England and Wales

Public Benefit Assessment Reports - Introduction

(July 2009)

 

This section of the website contains information about the public benefit assessments we have carried out. This web page provides information about the background to the public benefit assessments. Other pages in this section contain:

What is public benefit?

Public benefit is at the heart of what it means to be a charity. The Charities Act 2006 requires all charities to have aims which are, demonstrably, for the public benefit. Two principles (with a number of sub-principles) must be met to show that an organisation’s aims are for the public benefit:

  1. There must be an identifiable benefit or benefits
  2. Benefit must be to the public or a section of the public

Public benefit is not new, but the Charities Act highlighted its importance by including it explicitly in the definition of a charitable purpose. To explain what the public benefit requirement means in more detail, we have produced general guidance which trustees must consider.

Previously, charities’ aims that were to advance education or religion or relieve poverty were presumed, by law, to be for the public benefit, but now all charities have to demonstrate that their aims are for the public benefit. For charities with those aims, and for those that charge fees, we have produced supplementary guidance.

For financial years that begin on or after 1 April 2008, trustees must report on their charity’s public benefit when they submit their Trustees’ Annual Report. We have produced example Trustees’ Annual Reports to show how different sorts of charities might approach this reporting requirement. Reporting on public benefit is an excellent opportunity for trustees to reflect upon and promote the benefits their charity brings to those it serves.

What is a public benefit assessment?

In a public benefit assessment, we consider the extent to which an individual charity or charities meet the public benefit requirement and operate for the public benefit.

By building up a picture of the charity’s aims and what the trustees do to achieve them, we will be able to judge whether:

  • the organisation’s aims fall within the descriptions of purposes in the Charities Act 2006 – these are overall description of purposes or ‘aims’ which for the most part had been recognised by the Courts or the Charity Commission or Parliament as potentially charitable. A ‘purpose’ or ‘aim’ is only charitable where it can be demonstrated to be for the public benefit;

  • the charity is capable of being operated for those (potentially charitable) aims;

  • the charity’s aims are capable of being carried out for the public benefit (as set out in our general guidance);

  • the charity’s trustees are in practice carrying out those aims for the public benefit.

To assess the public benefit of a charity’s aims we look at the objects stated in its governing document and what it does to carry out those aims to see who benefits and how, and what (if any) restrictions exist on who has the opportunity to benefit.

We also consider the nature and relevance of any detriment, harm or private benefit that arises from carrying out the charity’s aims.

We do this by carrying out desk-based research, including asking the charity to fill in a questionnaire, gathering additional information if needed and visiting the charity to meet the trustees. We then analyse this information, come to a conclusion and produce a report. The reports of the first twelve assessments are available on our website.

Carrying out public benefit assessments is part of how we fulfil our statutory objective to promote awareness and understanding of the operation of the public benefit requirement. For more information, see section H of our general guidance.

Frequently Asked Questions

In this section you will find further information about public benefit assessments:

Why might you want to know about public benefit assessments?

There is a legal requirement that every organisation set up for one or more charitable aims must be able to demonstrate that its aims are for the public benefit if it is to be recognised, and registered as a charity in England and Wales. We have produced guidance to explain in greater depth what the public benefit requirement means. This first programme of public benefit assessments provides some real case studies to help trustees approach their own charity's aims.

What might this mean for your charity?

All trustees must carry out their charity’s aims for the public benefit, have regard to our guidance and report on their public benefit in their Trustees’ Annual Report. Reviewing your charity's public benefit can provide an opportunity to think about what it aims to do and who it benefits. The reports on individual charities and the emerging findings report (‘Public Benefit Assessments’) show how public benefit is assessed in practice.

How can you know whether your charity meets the public benefit requirement?

Your trustees and their advisers should read the general guidance and any supplementary guidance that is applicable to your charity. You should use this guidance to assess your charity’s public benefit and take the action you think is appropriate. Reporting on public benefit in your Trustees’ Annual Report gives a good opportunity to show what benefits the charity has provided for whom.

Where can you go for more information about public benefit?

Elsewhere on this website you will find:

Please contact us if you have questions that are not answered by these other sources of information.

Other information on public benefit assessments

Elsewhere in this section of the website you can find the following information:

Contact details

If you have questions or comments about our public benefit assessment work please contact us.

Press and media enquiries should be directed to the press office.