Investing as a charity – consultation on Charity Commission guidance

All charities can invest assets; for some this activity produces a small amount of funds, for others it is a major source of funding. The Charity Commission provides guidance for trustees to help them understand and comply with the law as it applies to their charity. Having taken feedback from charities, however, the Charity Commission found that its investment guidance was a barrier to many charities taking that step to invest, with one example of criticism being that the guidance lacked "practical advice".

In response, the Charity Commission has now developed revised draft guidance and is consulting all charities on it to establish whether it provides sufficient clarity a) about the discretion that trustees have to make responsible investments and b) to reassure trustees that they can decide to adopt a reasonable investment approach in most circumstances.

Although this public consultation is open to anyone with an interest in the draft guidance, the Charity Commission is keen to receive responses from trustees of charities that invest some or all of their funds, along with advisers and investment professionals.

If you have any questions about the draft revised guidance, or you are a charity seeking advice in general, please contact us.

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