Stone King Partners quoted in Charity Finance’s survey on the focus of the charity sector’s legal minds

Five Stone King Partners are quoted in Charity Finance magazine’s recent survey, ‘Law changes and a general election are the focus of the sector’s legal minds’, which sets out the legal matters that charities should be aware of for 2024.

The feature’s stand-out themes are the upcoming general election, and the gradual implementation of the Charities Act 2022 (the Act), including how the incremental changes are landing with charities. Among other topics, Charity Finance also examines what the future could be for independent schools should the next government be Labour, as well as the guidelines that charities should keep in mind when campaigning during what is now definitely a regulated period.

In the survey’s examination of the new measures brought in by the Act concerning the disposals of charity land, Stone King Partner Julian Blake said: “Regulation creep is an issue, in de facto rulemaking and attachment to certainty when reasonable interpretation is the operative principle.” He cited the fact that, over recent decades, when it comes to the regulation of disposals, calls for land acquisition to be regulated run counter to increased flexibility, and concluded that “Charity law is best understood as public benefit principles under the stewardship of charity trustees.”

Blake also gave comment on the Butler-Sloss ruling, now that a period of reflection has elapsed and the Charity Commission’s revised CC14 guidance has been published. He said that the case “essentially restates established charity law principles on the flexibility of investment powers, applies them in the contemporary context and precisely articulates a proper decision-making process”, adding that, “While such a case may provide a comforting security, claims made for it tend to suggest charity law is more technical and complicated than it really is.”

On independent schools and the potential challenges that 2024 may pose for them, particularly the widely publicised fact that a Labour government would seek to impose VAT on charitable and non-charitable independent schools, as well as remove mandatory business rates relief for the former, Stephen Ravenscroft, Partner and Joint Head of Stone King’s Charity Sector, commented.

“The reality of many independent schools’ budgets is that they are simply unable to afford to absorb these additional costs and that this will inevitably lead to a need to pass those additional costs on to parents,” said Stephen. “There are some whose parents are likely to be able to meet these additional costs. However, the majority do not have the luxury of being able to pass these costs on, and, for these schools, this should be viewed as an opportunity to review what they do and their offer.”

A matter that Stone King’s Charity Team have already been relatively vocal about is the next UK general election, which is likely to happen this year, certainly in the next 12 months. Joint Head of the firm’s Charity Sector, Rosamund McCarthy Etherington, sought to dispel any anxiety that campaigning charities may have: “In the lead-up to the general election, charities should feel reassured that, with the right planning and preparation, they can continue to campaign. It’s vitally important that the public hears from charities and that they can get across their key messages.” More information and advice for charities regarding election law can be found in this useful piece: ‘Q&A: Charity and election law for campaign charities’.

McCarthy Etherington also acknowledges that the issue of undue spiritual influence may become a fraught area as, although the Elections Act 2022 has bolstered the provisions for faith organisations in relation to the corrupt practice of causing spiritual injury to a person, “the case law, such as it is, is very unsatisfactory”. She added: “Undue spiritual pressure should go beyond the free expression of opinions on political matters that have implications for the principles of a religion. However, with faith leaders keen to talk about food banks, refugees and with the events in the Middle East, this may become a contested area.”

Tom Murdoch, Partner, shared his thoughts on misinformation and public interest journalism in relation to the Charity Sector during an election year. “Charities and not-for-profits suffer hugely as a result of increased public distrust. I’m confident that 2024 (and the election) will see even greater mis and disinformation than last year, drowning out the authentic voices of charities,” said Murdoch. “Calls for greater protection of legitimate news, greater transparency around funding and greater protections from amplified false information may at last result in action.” For more information on this topic, read Tom Murdoch’s piece on astroturfing and transparency.

The Charity Finance feature rounds up with a section entitled ‘Final thoughts’, in which Stone King Partner and Head of the firm’s Charity and Social Enterprise Team, Hannah Kubie, commented on the arrival of Orlando Fraser as Chair of the Charity Commission in 2022. She said: “Many felt his keynote speech at the Charity Law Association annual conference in October 2023 was refreshing, showing a renewed focus on expertise and the rule of law as the guiding principle.”

Kubie also shared her thoughts on the recent recommendations set out in the British Museum’s independent review, following the well-publicised thefts. She related her view that the charity sector as a whole, not just museums, can learn from the recommendations: “Governance must remain a key priority, and reviewing arrangements, policies and procedures – particularly with independent support – normally reveals interesting learning points.” 

To read the full article in Charity Finance magazine’s February issue, please go to ‘Survey: Law changes and a general election are the focus of the sector’s legal minds’. 

Please note, this article is behind a paywall.