Education briefing: charity law update for colleges and universities
Tuesday, March 9, 2010
There have been a number of further developments since that date of which colleges and universities should be aware.
Exempt charities - England
The statutory instruments implementing the exempt charity provisions of the Charities Act 2006 have now been made. They will come into force at the same time as section 11(3) of the 2006 Act, on 1 June 2010. The colleges and halls of Oxford, Cambridge and Durham universities and students' unions will cease to be exempt charities. They will become "excepted" charities and will need to register with the Charity Commission if their annual gross income exceeds £100,000. Many further education college unions and some higher education college unions will therefore not need to register.
There are a number of further and higher education institutions which are currently registered with the Charity Commission. It will be possible for such institutions to be declared by Order in Council to be exempt charities. Although the Charity Commission have indicated that there should be no difference in the nature or extent of regulation whether the institution's regulator is HEFCE or the Commission, it is possible that some institutions currently registered with the Commission may wish to move to exempt status.
HEFCE has just completed its consultation about its information requirements as principal charity law regulator, this closed on 12 March.
DCSF has confirmed that the Young People's Learning Agency (YPLA) will be the principal charity law regulator of designated sixth form colleges once it is formally established on 1 April 2010. It has also indicated that it is likely that the SFA will be appointed as principal regulator of further education colleges. However, no statutory instrument to give effect to these changes has yet been made by Parliament.
Exempt charities - Wales
All further and higher education institutions in Wales which are currently exempt charities will lose that status on 1 June 2010 and will need to register with the Charity Commission, as no suitable principal regulator was identified for Welsh colleges and universities. Likewise student unions in Welsh institutions will, like their English counterparts, have to register with the Commission if their annual income exceeds £100,000.
As with those English institutions which will cease to be exempt charities, the institutions and unions concerned will on 1 June 2010 become "excepted" charities until their registration with the Charity Commission is completed.
Charitable Incorporated Organisations (CIOs)
The consultation exercise undertaken by the Office of the Third Sector on the necessary regulations and model constitutional documents produced a significant number of responses. While the Cabinet Office had expected that the CIO structure would be available in the second quarter of 2010 the statutory instruments required have not yet been made. We believe that implementation is now expected for the autumn. We are continuing to monitor this area. We will publish further briefings as and when more information becomes available.
