If your charity has a close relationship with a non-charitable organisation – such as its founder, trading subsidiary, or a regular partner – you must manage the connection in your charity’s best interests and protect its independence. You need to plan for the risks as well as the benefits that the connection can bring.
The Charity Commission’s new guidance for charities with a connection to a non-charity will help you to do this. It draws together relevant law and practice, setting out 6 principles to help trustees run and review these connections.
It follows concerns that some relationships between charities and non-charities have damaged public confidence in charity. It will also help us, as the regulator, to better hold charities to account against existing rules.
Source: Charity Commission Newsletter issue 63