The Charity Commission’s guidance on the public benefit test is the “narrowest and most restrictive view possible of exiting law” and will have negligible effect, according to the Directory of Social Change (DSC).

Until now, it had supported the “case law” approach, on the grounds that it gave the Commission scope to develop existing law much more broadly that it has been applied in the past and that it would be “impossible” to get an appropriate definition. The DSC feels that under the new guidance, these reasons no longer apply and is calling for the Scottish version to be used instead, which has been widely accepted.

The Charities and Investment Trustees Bill (Scotland) states that the Office of the Scottish Charity Regulator (the Charity Commission equivalent) must give regard to where the benefit is and if there is any condition attached to obtaining that benefit which is unduly restrictive. It must also compare any disbenefit to the public with the benefit gained or likely to be gained by the public.