Local authorities and the management of charities

As a local authority, what would you do if you discovered that your new neighbourhood amenity was built on land that doesn’t belong to you?

Recently, we’ve seen a significant increase in the number of local authorities finding themselves in this scenario and realising that land, buildings, and other assets they have managed for years as their own were actually entrusted to them for charitable purposes.

Many local authorities are currently facing a challenging combination of funding cuts, staffing shortages, and increased workloads. As a result, the administrative duties that come with being a charity trustee may have been unintentionally overlooked. This is further complicated by trust deeds that may date back several decades or even centuries, making them difficult to access. In a letter to local authority CEOs, the new Chief Executive of the Charity Commission addressed this matter and emphasised the expectation for local authorities to be compliant with their duties when operating as a charity trustee.

How we can help

At Browne Jacobson, we understand that the overlap between public and charity law is complex and requires specialist advice. Our legal advice to government organisations drives public sector modernisation, making us ideally positioned to assist local authorities in understanding their trustee duties, exploring available options, and rectifying past errors.

Our team can assist with the following:

• Upskilling: Providing training to your team on what it means to hold property in trust and what the duties of the local authority as a charity trustee are.
• Inventory: Helping you take stock of the charities your authority is a trustee of and summarising key data regarding each charity. We can assist with the digitalisation and electronic storage of all relevant documents in a central repository. We will also liaise with the Charity Commission to request copies of any missing documents lodged with the Commission.
• Report: Sharing our findings following the completion of the inventory for each charity, our assessment of compliance with governing documents and charity law, and our recommendations on how to achieve compliance. Our report will also include options for streamlining the authority’s charitable holdings.
• Strategy: Advising on available options for exercising trusteeships or rationalising them, while balancing donors’ wishes, community needs, and charity law principles.
• Implementing Change: Assisting with implementing a revised strategy and addressing any compliance issues identified for specific charities.

For more information or to schedule a free initial consultation, please contact Peter Ware, Nathalie Jacoby-Danesh, or Vicki Hair. During the consultation, we will assess whether your local authority is at risk of non-compliance with charity law and discuss potential solutions to prevent or resolve any issues.