Minister for the third sector Phil Hope MP has officially launched the fourth commencement order of the Charities Act 2006, bringing changes to accounting and reporting into force and requiring professional fundraisers to state how much they are paid when asking for donations.

The changes also include the new statutory definition of ‘charity’ – i.e. having purposes that are exclusively charitable with those purposes being for the public benefit – and the requirement to demonstrate public benefit to the Charity Commission. The Commission itself has spent the last several months publishing draft guidance into public benefit which is available on its website www.charity-commission.gov.uk

Also, under the new accounting and audit procedures, charities will now be required by law to produce group accounts where they undertake activities through subsidiaries.

Commenting on the new rules coming into force, Hope said: “The government is continuing to support charities build on their proud history of tackling injustice and driving change in our society. Of course, as society has progressed so too have charities. The new legal definition of charity, and the public benefit requirement, will give charities the platform to explain their good work and help the public see their true value.”