Part 1: Purposes, Powers and Governing Documents Section 10: Amendment of powers to release restrictions on spending capital Circumstances in which Charity Commission oversight is required under section 282
Section 10(3) changes the circumstances in which Charity Commission consent is required to release permanent endowment by amending section 282 of the CA 2011 in two respects.
First, it makes section 282 applicable to funds even if they do not consist entirely of property given by a particular person (or persons) for a particular purpose. Accordingly, the mere fact that a permanent endowment fund comprises some capital that originates from accumulated income (as opposed to a donation of capital by a donor) does not enable the charity trustees to use the section 281 power and therefore avoid oversight by the Charity Commission. Instead, the sole criterion which determines the availability of the section 281 or 282 powers (and thus the need for Charity Commission oversight) is the value of the permanent endowment fund.
Second, it raises the market value of funds to which the section applies to funds exceeding £25,000. The gross income of the charity in question will no longer be relevant to determining whether the section 281 or section 282 power can be exercised as the new threshold focuses solely on the market value of the fund.