What increased powers will the Charity Commission have and what do charities need to do?

The Department for Culture, Media and Sport (DCMS) recently announced that the Charity Commission (Commission) will have increased powers under the government’s social cohesion action plan. Measures include:

• Strengthening the regulator’s powers to close down charities which promote extremism.
• Mandatory trustee ID verification.
• Digitisation of charity accounts.
• Increasing local authority powers to issue fines and take other enforcement action to tackle unlicensed street fundraising.

According to the DCMS, since October 2023 the Commission has opened over 400 regulatory cases for hate speech and made around 70 referrals to police where criminal offences may have been committed. The Commission has recently come under criticism for its approach to an Islamic preacher who told his congregation that women must serve their husbands. The regulator, after considering the preacher’s full sermon in context, provided trustees with formal advice to strengthen their governance and risk management.

The DCMS says it will also be working with the Commission to speed up the process for investigating charities, including processing decisions more quickly and reviewing the appeals process.

These measures are in addition to a consultation launching shortly, which will road-test plans to automatically ban individuals with a criminal conviction for hate crime from serving as charity trustees or senior managers. It will also consult on plans to strengthen the Commission’s powers to disqualify individuals where there is evidence they have promoted violence or hatred. Trustees should therefore review governance structures to ensure they can withstand heightened scrutiny, including robust safeguarding, risk management, and whistleblowing procedures.

The Charity Commission will need to be careful that it does not stray into questions of legitimate religious doctrine, which is protected by the principle of non-justiciability by the court of legitimate religious doctrine. Such a breach would be subject to recourse to the court and it would be expected that these new additional powers will also carry with them rights of appeal.

What should charities do to prepare?

In anticipation of the Commission’s additional powers, charities should be preparing for a more proactive, risk-focused regulatory environment by doing the following:

• Strengthen internal governance: Review trustee eligibility, consider formal ID and background-checking processes, and ensure clear policies on extremism, hate speech, safeguarding, and equality.
• Audit communications and activities: Assess sermons, publications, online content, and community activities for potential regulatory or reputational risk.
• Enhance reporting frameworks: Ensure decisions, investigations, and safeguarding actions are documented and aligned with best practice.
• Prepare for digital compliance: Begin planning for digitised accounts and updated reporting workflows.
• Engage trustees proactively: Provide training on the forthcoming powers, risk management, and the need for heightened vigilance.

By acting early, charities can protect their beneficiaries, preserve public confidence, and ensure they remain fully compliant as the regulatory landscape strengthens.

If you have questions or concerns about the Commission’s new powers, please contact Charities & Not-For-Profit partner Robert Meakin.