What are the latest legal developments that trustees of faith organisations need to be aware of?

The pandemic highlighted to society and government just how faith groups support their communities when responding to a crisis, and the past year has begun to re-formalise that recognition in policy. The independent Bloom Review urged government to treat faith communities as “a force for good” and to build faith literacy across public services – not as a favour to religion, but because it improves outcomes for people and places.

The newly launched Civil Society Covenant takes that further. It sets principles to reset the relationship between government and civil society, explicitly including faith-based groups, and establishes mechanisms (such as a Joint Civil Society Covenant Council and local partnership programmes) to turn those principles into practice. The detail of how this can be achieved is not yet clear, but it nonetheless puts faith in the midst of positive discussions about community cohesion and impact.

For trustees to consider: If you were invited by the Government to co-design a local programme to deliver impact, could you demonstrate how your organisation could do that, including evidence of existing community impact?

The Charities Act 2022 (‘the Act’) continued its phased implementation through March 2024, delivering three practical shifts trustees should already be using:

• Governing documents: unincorporated charities now have a statutory power to amend their governing documents, with Charity Commission (‘Commission’) consent required for regulated alterations such as changes to purposes.
• Charity land: the Act widens who can advise on disposals, gives trustees more discretion on marketing, and removes the need for Commission authority for certain residential staff tenancies.
• Permanent endowment & mergers: smaller endowment funds can, in defined cases, be spent without Commission authority; charities may borrow up to 25% of the endowment value; and merger rules now better preserve donor intent.

Additionally, the new Fundraising Code is live from 1 November 2025, so trustees should consider their fundraising practices as, given the huge amount of trust that their communities have in them, the way trustees approach this is key.

Thought-leadership take for trustees: The above bullet points are not loopholes designed to make things move faster. Use them to modernise constitutions, professionalise property stewardship, and unlock capital where your charitable purposes would be better served by responsible spending or social investment.

Regulators’ patience with review fatigue has run out. In January 2025, the Commission wrote to the Church of England, stressing the urgent need for improved safeguarding arrangements in the wake of the Makin Review.

Across the wider faith-based landscape, sector analyses have mirrored that message: safeguarding failures are as often cultural as procedural; boards must evidence independent assurance; and leadership needs to model learning, not defensiveness.

Property stewardship is converging with safeguarding and mission. If you provide accommodation, the emerging Renters’ Rights Bill and the extension of the Decent Homes Standard point to faster hazard remediation and higher baseline standards within the private rented sector.

For trustees to consider: When did you last test your safeguarding escalation routes? Does your property budget realistically fund safe, decent standards, and how would you evidence that to a regulator?

The employment landscape is shifting towards earlier and broader worker protections. The Government’s Employment Rights Bill proposals outline a move to day one unfair dismissal rights, curbs on “fire and rehire”, and obligations to offer predictable hours to zero-hours workers.

From 26 October 2024, employers acquired a proactive duty to take reasonable steps to prevent sexual harassment, with the Equality and Human Rights Commission empowered to enforce and tribunals able to uplift compensation for failures.

Recent charity sector employment updates have also highlighted the litigation and reputational risks around belief-related disputes and campaigning relationships.

For trustees to consider: Could you defend your probation decisions under a day one unfair dismissal regime? What documented reasonable steps to prevent sexual harassment in the workplace could you show tomorrow if the EHRC asked?

The Civil Society Covenant (launched on 17 July 2025) is more than a statement of goodwill. It sets out a programme: a Joint Civil Society Covenant Council, task-and-finish groups, and a Local Covenant Partnerships scheme.

Faith organisations are well positioned, as their reach is hyper‑local, their assets are community‑embedded, and their legitimacy is relational.

For trustees to consider: Do you have the impact data, safeguarding assurance and financial transparency to be a credible partner under a local Covenant agreement?

Long‑term trust is built where legal compliance, ethical culture and community partnership converge. The developments of the last year invite trustees to lead in that space:

• Re‑fit your governance: use Charities Act flexibilities to modernise governing documents.
• Evidence safeguarding in action: commission an external pulse‑check on safeguarding culture.
• Professionalise employment practice: road‑test policies against proposed reforms.
• Engage with the principles of the Covenant locally: map where your work overlaps with public priorities.