Official warning issued by the Charity Commission in relation to social media activity

The Charity Commission issued an official warning in early June against a charity (Palestinian Refugee Project) on the basis of misconduct and/or mismanagement. Details of the official warning can be found here.

The trustees of the charity in question were found to have “failed to effectively manage the Charity’s website and social media”, among other failings. It is reported that one trustee had control of the material that was posted, and was promoting political material which was divisive and inflammatory.

The same trustee has been disqualified from serving as a trustee or senior manager for eight years.

Action point: Charities should take note that breaches in relation to social media activity can lead to serious regulatory action.

Charity Commission criticises trustee for lack of financial controls in inquiry report

In May, the Charity Commission published its report into the Olive Grove Foundation, following a statutory inquiry. The report notes that the charity allowed a transfer of more than £150,000 of charity funds into the personal account of one of the trustees, to facilitate transfers overseas.

The charity also applied monies towards purposes that fell outside of its objects. The Commission noted that the charity’s policies should have been more comprehensive given its size and the nature of its operations. More details can be found here.

Action point: Charity trustees should note that financial controls must be complied with, and policies should be appropriately detailed and take account of the charity’s operations.

Charity Commission updates its guidance on trustee payments

In late April the Charity Commission updated its guidance document CC11, now titled Charities paying a trustee or a connected person: understand the rules, with an emphasis on the voluntary and unpaid nature of the trustee role.

The guidance has been separated into discrete sections relating to different types of trustee benefit, including:

• supplying goods and services to the charity;
• being employed by the charity;
• being paid to carry out trustee duties; and
• compensation for loss of earnings.

Guidance on trustee expenses (i.e. payment for out of pocket expenses) has been separated into its own document (available here).

Action point: This is an important area of compliance for all charities. Trustees should have regard to the new guidance.

Charity Guidance on trustee recruitment revised by the Charity Commission

In May the Charity Commission issued a new version of its guidance document CC30, now called Finding and appointing new trustees, as part of a push to encourage better usage of this particular guidance.

The revised version has more detail on practical steps that charities might take to find suitable candidates. It also includes sections on writing trustee role descriptions, and developing better induction processes for new trustees.

Action point: Charities should find this revised guidance practically useful if they are looking to recruit trustees.

Consultation run in relation to new version of the Charities SORP

In late March, a 12-week consultation commenced in relation to proposed changes to the SORP.

The Charities “SORP” (or Statement of Recommended Practice) is a guidance document for accountants regarding the preparation of charity accounts.

The consultation closes on 20 June 2025. Following this process, a revised version of the SORP is expected to be published in the Autumn of 2025, to take effect in January 2026.

Action point: Trustees should liaise with their accountant advisers to understand key points arising from the amendment of the SORP later this year.

Business rates relief removed for charitable private schools

The government has followed up on its proposal to remove business rates relief from charitable private schools, with effect from 1 April in England. The same measure has also come into force in Wales.

Broadly, relief from business rates is granted at 80% for charities, subject to certain eligibility criteria. Most charitable private schools in these territories will no longer benefit from this relief.

Action point: Trustees of such charities will already have been planning for the removal of this relief. It is a reminder to the sector of the government’s ability to overturn well-established reliefs for charities.

Supreme Court rules that ‘sex’ under the Equality Act means biological sex

In April 2025, the Supreme Court issued a key ruling, unanimously holding that “sex” within the meaning of the Equality Act 2010 refers to biological sex.

For information about this key case and its implications for your charity, see this article published by our employment colleagues in late April 2025.

Action point: Charities need to be aware of this crucial legal case, and monitor the ongoing discussions around its impact.

Landmark case on discrimination and expressing beliefs on social media

Earlier this year, the Court of Appeal gave a much anticipated ruling in the case of Higgs v Farmor’s School, finding that a claimant was subjected to unlawful discrimination for expressing controversial beliefs on social media. The individual had been suspended and dismissed for gross misconduct, before bringing their claim.

For information on this ruling, please see this article published by our employment team.

Action point: Organisations should have regard to this judgment if similar circumstances arise in relation to their staff.