Exempt and excepted charities

Previously exempt charities have not been allowed to register with the CC as it has been presumed that they were adequately overseen by other public bodies, such as the Financial Services Authority or Housing Corporation. The new Act ensures that these charities are now also monitored for compliance with charity law.

The Act divides previously exempt charities into one of two groups:

• those entities that are already regulated by a body, other than the CC, which has agreed to ensure they meet charity law requirements. These charities will continue to be exempt and will be regulated by their current regulator, now known as a ‘principal regulator’. The CC will be able to investigate these charities if there is a request from their principal regulator
• those entities where no suitable regulator exists. In this case a previously exempt charity will cease to be exempt and will have to register with the CC. All such charities will come under the jurisdiction of the CC. To ease the transition, initially only those charities with an annual income of over £100,000 are required to register. The threshold is expected to be reduced in the future, but this may be some years away.

Previously excepted charities included certain groups that did not have to register with the CC but could do so if they wished. These groups included some religious charities, Boy Scout and Girl Guide charities and some armed forces charities. In the future the Act will require these charities to register with the CC. As with the affected exempt charities discussed above, initially as a transitional measure, only excepted charities with an annual income of £100,000 or more will be required to register. Those below the £100,000 threshold will be under CC jurisdiction but will not have to register.

These changes will take effect in 2008.