Regulator updates guidance after legislative changes on ‘moral payments’

From today charity trustees have new powers when considering if there is a moral rather than legal obligation to transfer some of their charity’s property.

Few charities ever face this situation, and payments typically relate to legacies where there is evidence that a person’s will does not reflect their final wishes.

When considering if they should make a moral payment, trustees must now apply an objective rather than subjective test of moral duty; have the option to delegate the decision to staff; and may be able to self-authorise small moral payments.

To help charities work within the new legal framework, and only apply for Commission authority when needed, the charity regulator has updated its guidance for trustees .

The regulator also encourages trustees to refer to its general