The Charity Commission has called on organisations to have their say on new guidance aimed at helping charities manage relationships with connected non-charitable organisations.
The draft guidance, found here, suggests that working with for-profit businesses can expose charities to “significant risks”.
However, it says it is common for charities to have close connections with non-charities and that this is not a concern in principle.
The guidance looks at how charities can manage these relationships properly in order to fulfil their legal duties and maintain public trust and confidence.
For example, it is vital “that the public can easily distinguish between the charity and the connected non-charitable organisation, particularly where, for example, they share a very similar name”, said the regulator.
Sarah Atkinson, Director of Policy, Planning and Communications at the Charity Commission, says: “This guidance is designed to help charities benefit from appropriate connections with non-charitable organisations, while preserving and protecting what is special and unique about charity. We want to help trustees make decisions that promote their charity’s best interests, and that encourage public trust in charity more widely.
“We know that charities want this guidance: currently advice is spread across several different Commission publications and this document pulls it all together in one place. We have also designed some practical aids to help trustees put the guidance into practice.
“The guidance is in draft form, and we are keen to hear from as wide a range of charities and advisers as possible, to ensure the final guidance is as clear and helpful as possible.”
The consultation about the draft guidance will close at 5pm on the 15 May 2018.