We are happy to share our latest charity law update, which will bring you up to speed on relevant legal developments since our update in the summer.

We delivered our annual series of trustee training webinars in September and October, in conjunction with accountants HaysMac. These webinars provided a refresher on the legal duties of trustees. If you missed these informative sessions, do let us know and we can share recordings and copies of slides.

We will be in touch again in the new year with a further update. If you need any legal help or would like to discuss any queries in the meantime, we would be delighted to hear from you.

Stephen O'Reilly

Partner and Charity Sector Head
s.oreilly@hempsons.co.uk

Martyn Robinson

Associate
m.robinson@hempsons.co.uk

Updated EHRC Code of Practice

On 5 August 2026, the Equality and Human Rights Commission’s updated statutory Code of Practice on services, public functions and associations came into force. The updated Code (available here) reflects developments in equality law and case law, including the Supreme Court’s 2025 decision in For Women Scotland.

The Charity Commission has emphasised that charities should take steps to comply with the new Code and the Equality Act 2010 now, rather than await its own updated guidance, expected in autumn 2026.

Action point: Trustees are responsible for ensuring their charity complies with the Code.

New consumer subscription contracts regime

From 1 January 2027, a new consumer subscription contracts regime is expected to apply to new contracts (under the Digital Markets, Competition and Consumers Act 2024 and implementing regulations).

It will introduce enhanced requirements around pre-contract information, renewal reminders, cooling-off rights and straightforward cancellation arrangements, and may affect charities providing paid services or benefits on a subscription basis.

Certain charity memberships, including some giving access to museums, heritage sites and cultural performances, will be exempt.

Action point: Trustees of charities with subscription arrangements should consider whether their services fall within this regime.

External contributor –
Brightman Kinsey

AI, governance and the future role of the Board

Jane Brightman, consultant at Brightman Kinsey, has shared a timely article about the possible impact and usefulness of AI as a tool for charity boards. The article looks at:

  • how AI could reshape board governance; and
  • the fundamental importance of human judgement to charity governance

Action point: Trustees of all charities should consider the appetite of their board in making use of AI as a tool to help with governance.

Please see Jane’s article here

Data protection

Fundraising Regulator issues guidance on charitable “soft- opt-in”

On 23 June 2026, the Fundraising Regulator published new guidance on the extension of an electronic marketing “soft opt-in” to charities.

The change, introduced by section 114 of the Data (Use and Access) Act 2025 and effective from 5 February 2026, allows charities to send direct marketing emails to existing supporters without specific consent where prescribed conditions are met.

The guidance, available here, provides practical examples to help charities use the exemption lawfully and responsibly and explains how fundraising marketing can comply with the Code of Fundraising Practice.

Action point: Trustees need to ensure compliance with data protection law, but should take note of this relaxation for charities.

ICO transition to the Information Commission

On 30 September 2026, key provisions of the Data (Use and Access) Act 2025 came into force, transferring the Information Commissioner’s functions and responsibilities to the new Information Commission.

The new statutory body replaces the previous corporation-sole model with a Board-led structure comprising a Chair, Chief Executive and non-executive members, with collective responsibility for decision-making.

In the short term, the regulator is expected to continue using the familiar “ICO” name.

Action point: Trustees should ensure they are aware of this development in regulation around data protection compliance.

Court and tribunal decisions

High Court ruling on amendments to a charity’s constitution

In the case of Chatwani and others v Mehta and others [2026] EWHC 2455 (Ch), reported in late September 2026, the High Court held that purported amendments to the constitution of Yogi Divine Society UK were invalid.

The amendments had sought to remove the status and governance powers of a particular member, but were adopted at a trustees’ meeting for which the notice misrepresented the meeting’s true purpose.

The Court found that the constitutional requirements for notice had not been satisfied and that the member was materially prejudiced.

Action point: Trustees should note the importance of following governing document procedures when constitutional changes are proposed.

Disqualification order for Naomi Campbell quashed

In October the First-tier Tribunal allowed model Naomi Campbell’s appeal against her five-year disqualification as a charity trustee.

Although Campbell shared responsibility for failings at Fashion for Relief, including inadequate record-keeping and late accounts, the Tribunal found that the most serious misconduct resulted from concealed fraud by a co-trustee who had deceived Campbell.

It concluded that Campbell had not acted dishonestly, was not responsible for the principal misconduct and was not unfit to act as a trustee.

Action point: The case represents a rare occurrence of a trustee disqualification order being quashed.

Enforcement

Proposed extension of Charity Commission disqualification powers

On 14 October 2026, the Government launched a consultation on proposals to strengthen the Charity Commission’s powers to disqualify charity trustees and senior managers as part of measures to tackle extremism.

The plan involves expanding the offences resulting in automatic disqualification to include specified hate crime, national security and Charity Commission information offences.

There is a new category that would allow the Commission to disqualify certain individuals who have engaged in conduct or expressed views which “would reasonably be likely to promote or encourage violence, or racial or religious hatred”, which is the subject of some scrutiny.

The consultation (details of which are available here) closes on 23 December 2026.

Action point: Trustees should keep an eye on any new powers obtained by the Charity Commission in this respect.

Postponement of other proposed reforms

The wider package of reforms previously announced by the Government in March 2026 also included proposals to introduce identity verification for charity trustees, strengthen the Charity Commission’s powers to suspend trustees and close charities, and require greater digitalisation of charity accounts.

These measures are not included in the current consultation, which is limited to extending trustee and senior manager disqualification powers.

The Government has indicated that the omitted reforms would require primary legislation, and therefore remain potential future reforms rather than part of the present proposals.

Action point: We will continue to monitor the introduction of further reforms and highlight in future updates if the Government revives these proposals.

Other areas of interest

Supreme Court judgement on duty on directors to act in “good faith”

The Supreme Court has sharply clarified the limit of a director’s duty to act in good faith under section 172 of the Companies Act 2006 – sending a clear message that subjective belief that you are acting in a positive manner alone is no longer enough to justify a director acting independently of the other directors.

For more information on this development, please see this article published by our Corporate team.

Action point: Trustees who are also directors of charitable companies should take note of this point, around decision making where opinions are divided on the board.