Public Benefit Assessments – The Lawyers’ Perspective

The Charity Commission of England and Wales performsassessments of the public benefit provided by charitable organizations.  Where the Commission finds the benefitprovided wanting it may require further action by the charity to increase ordiversify the public benefits provided.  ThirdSector reports that “Charities are being put off from engaging with the Charity Commission because theyfear becoming embroiled in lengthy assessments of their public benefit,according to some charity lawyers.” 

Lawyers have raised a number of concerns about theassessment process.  Lawyers complainthat the assessments cause charities a lot of anxiety and frustration.  The Commission has not been able to provide adefinitive answer to the question of what triggers a public benefit assessmentstating only that each case is taken on its merits.  Public benefit assessments have been launchedagainst charities for a variety of activities such as incorporation, alteringtheir objective, selling land or revising their trustee benefit provisions.  Further, lawyers claim that they do not seethe assessment results as having any real consistency.  This lack of certainty regarding both thetriggering and the results of assessments creates a serious hurdle for lawyerstrying to counsel their charitable clients.

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