Charity Law Updates: Key Changes from 2025
The charity sector continues to evolve, and 2025 has brought significant developments that trustees, leaders, and charity professionals should be aware of. As the year comes to a close, we have set out below a summary of some of the important updates shaping governance, compliance, and fundraising practices.
1. Revised Fundraising Code
The Fundraising Regulator introduced a new principles-based Code of Fundraising Practice effective from November 2025. Key changes include:
- charities are required to carry out due diligence on large or unusual gifts;
- a greater emphasis on safeguarding, placing stronger emphasis on protecting children, young people and vulnerable adults;
- explicit responsibilities for Trustees; these include active oversight of fundraising activities, conducting risk assessments and providing a duty of care to fundraisers.
You can find the new code here: Code of Fundraising Practice
2. New Charity Governance Code
The updated Charity Governance Code, published on 3 November 2025, features eight principles, placing greater emphasis on ethics, culture, and trustee behaviours. It also separates decision-making and risk management into distinct principles, encouraging boards to adopt stronger governance practices.
The new code can be accessed via this link: CCG_English_FINAL_highres.pdf
3. Ex-Gratia Payments – New Powers for Trustees
From 27 November 2025, trustees gained statutory powers to make certain moral (ex gratia) payments without prior Charity Commission approval, subject to financial thresholds. This change simplifies processes while maintaining accountability. They will enable:
- trustees to delegate decision-making authority for moral payments to other people at the charity, for example a member of staff or a trustee sub-committee;
- charities to make certain moral payments without Commission authority.
You can find out more information and guidance on the Charity Commission website: How charities can make a moral, or ‘ex gratia’, payment (CC7) – GOV.UK
4. SORP 2026 Announced
The next Statement of Recommended Practice (SORP) will take effect in January 2026, introducing new accounting standards. Charities should start preparing now to ensure compliance with updated financial reporting requirements.
We’re planning a webinar on our Forum for Charities early in the new year to discuss the upcoming changes – keep any eye out for details!
6. New Offence: Failure to Prevent Fraud
From September 2025, larger charities face criminal liability if they fail to prevent fraud by staff or associates. Trustees should review anti-fraud policies and implement robust procedures to mitigate risk.
7. Launch of Our Forum for Charities
In April this year we launched our Forum for Charities this year – a dedicated space, free of charge, for charity leaders and professionals to access insights, guidance notes and webinars and events.
Please do get in touch if you would like to join.
