09 May 2022

New Charities Law to be introduced in Guernsey

Guernsey is introducing legislation to regulate the charitable sector.

The Charities etc (Guernsey and Alderney) Ordinance, 2021 has already been approved and it is anticipated that the required supporting regulations will soon be finalised. 

The legislation will apply to any organisation with charitable purposes that exists to provide benefit to the public or a sector of the public. Certain charities will be obliged to register with the new Charities Registrar, particularly those with assets in excess of £100,000 or a gross annual income of £20,000 or more.

The new legislation imposes obligations including those relating to the composition of the management team, record keeping, financial probity and the verifying of the identity of certain donors. The obligations imposed and the changes brought by this legislation will impact upon most Guernsey charities and require each charity to carefully consider its position and to implement any amendments in structure and governance necessary to ensure compliance.

The new legislation should help to professionalise the charitable sector in Guernsey and for many Guernsey charities will have little practical impact but for some the impact will be significant. Navigating the new legislation and ensuring compliance will require careful attention and the taking where appropriate of legal advice. Charities should take action now to ensure they are best placed to continue their good work after the legislation comes into force.

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