Investment and finance

The issue of what to do with their funds is of significant concern to charities. It is not as simple as it may seem as they are regulated not only by the Trustee Act 2000 but also by the Charities Act 2011 and regulations and powers imposed by the Charity commission.

Charity investments—definitions

There does not appear to be a definition of 'investment' in the context of charities save that there is a legal meaning that is derived from case law that indicates that charities must, in order to meet the legal definition, be solely concerned to look at the financial return.

However, there is also the common law definition to consider and it is here that some confusion is engendered with the Charity Commission appearing to concede that when considering their investments charities do not need to concentrate solely on the proposed investment providing a financial return. The implication from this seems to be that in making an investment charities can also consider how their objects may be promoted by that investment. However, this approach is by no means certain and ,currently charities are bound to follow the

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OPG updates guidance on gift-giving rules for deputies and attorneys

The Office of the Public Guardian (OPG) has updated its guidance on the legal framework under the Mental Capacity Act 2005 governing when deputies and attorneys acting under a lasting power of attorney or an enduring power of attorney, or appointed by the Court of Protection, may give gifts on behalf of a person lacking capacity, and setting out the action it may take where authority is exceeded. The guidance states that gifts are permitted only in limited circumstances, typically on customary occasions to people connected to the person or to charities they supported, and must be reasonable, affordable and in the person’s best interests; any gift outside these statutory exceptions requires prior approval from the Court of Protection. Deputies and attorneys must first assess whether the person has capacity to decide, involve them as far as possible, and consider their wishes, feelings, financial position, current and future needs, care costs, tax implications and the impact on inheritance, while recognising that lasting powers of attorney, enduring powers of attorney or wills cannot extend statutory gifting powers. Property transfers, loans, transactions involving conflicts of interest and other substantial arrangements generally require court approval, with only limited de minimis exceptions. The OPG may investigate concerns, require repayment, seek removal or suspension, enforce security bonds or refer matters for criminal investigation where unauthorised gifts are made.

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