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MHC notes act’s impact on religious charities

Lawyers at Mason Hayes & Curran (MHC) have highlighted two provisions in incoming charities legislation that they believe will be of particular interest to religious charities.

The Charities (Amendment) Act 2024 was enacted in July, but has not yet been commenced and, therefore, is not yet in force.

In a note on the firm’s website, however, the MHC lawyers say that taking steps to address the act’s provisions in advance will help ensure readiness before they come into force.

Obligations

MHC says that the 2024 act has, for the first time in the context of charity law, introduced a definition of a ‘member’ of a charity.

For charities that are not companies, ‘members’ are defined as those who are “entitled to appoint, nominate, or vote for the appointment of a person as a charity trustee of that organisation”.

The lawyers say that religious orders or congregations without a company structure who rely on local canonical structures for their registration with the Charities Regulator “may face challenges”, as the act introduces new obligations relevant to members.

“Religious charities, in particular, should take the opportunity to carefully consider this point, and identify each individual who will be captured by this new definition,” the note says.

The MHC lawyers also highlight a new requirement to maintain a ‘register of members’, which must include the name and address of each member, as well the dates on which their details enter the register, and the dates on which they cease to be a member.

Constitution

In addition, the firm says that the act has updated the provisions of section 39 and section 40 that relate to the registration of charities.

As part of these updates, the Charities Regulator is now required to include a copy of the charity’s constitution on the Register of Charities.

“This will particularly affect those charities that are unincorporated associations or trusts, as their governing documents are not presently publicly available,” the MHC lawyers state.

They urge charities to look at their current structures governing the appointment of members, and to also consider whether they are happy for their governing documents to be published in their current format.