It’s been a really busy few months in the charity sector with new resources, guidance and codes being published. There’s a lot to take in, so here's Mills & Reeve's quick guide to the changes and what you need to know.
Charity governance code
Good governance is the basis for a successful charity. Governance supports the charity’s compliance with law and regulation and enables everyone to work towards the charity’s objects.
A consultation took place during 2024 under the code’s voluntary expert steering group, which included Mills & Reeve's Judith Houston. The update aims to improve accessibility and remove barriers to use. The finalised version of the code is expected at the end of this month, October 2025.
“Mills & Reeve LLP was delighted to be involved in the Charity Law Association (CLA) Working Party reviewing the latest draft charity governance code. The revisions to the code clearly demonstrate first-hand the sector’s commitment to improving clarity, proportionality and accessibility in governance standards. Our response emphasises the need for scalable expectations and practical guidance - particularly for smaller charities - so that the code remains aspirational without becoming burdensome. It’s an important moment to shape a framework that supports trustees in delivering impact with integrity.” Judith Houston
New fundraising code of practice
Following a consultation the Fundraising Regulator is updating the code of fundraising practice, with the new version taking effect on 1 November, 2025.
The updated code is shorter (approximately half the length of the existing one), more streamlined, and adopts a principles-based approach to regulation. The focus is on broader rules that can be applied to various scenarios, making it more flexible and adaptable to new fundraising methods, including emerging technologies. Usefully, the new code has more links to essential guidance from other regulators.
To prepare for the changes, the Fundraising Regulator has produced useful resources including FAQs. To prepare your charity, get familiar with the new code and its supporting guidance, and checking that current fundraising processes comply with updated requirements.
The charity investment governance principles
Published in February this year, by The Charity Finance Group, offering practical advice on investment decision-making. The guidance builds on the principles set out in the Butler-Sloss (2022) case (covered here in our blog). It builds on the Charity Commission’s guidance (CC14).
The principles give practical examples of how to tackle governance challenges in relation to investment decisions and follows the same format as the charity governance code.
New Charities SORP
New accounting rules, due to be published this month, October 2025 will come into effect for accounting periods starting on or after 1 January 2026. There are notable changes to how leases are accounted for and trustee reporting obligations. There's plenty of useful guidance from Charity SORP group and a wide range of resources have been produced by the Institute of Chartered Accountants in England and Wales.
Updated Charity Commission guidance
The Charity Commission has a rolling programme of guidance refreshment; on the whole the guidance is briefer. This is because the Commission’s research shows most trustees consult the guidance on their mobile phone screens.
Payment of trustees - on payment for goods and services to trustees, and connected persons, new guidance aimed at clarifying the rules in place, was issued in April. Payment may be considered in exceptional circumstances, and for a temporary period, where there's significant advantage to the charity.
The guidance fleshes out the statutory conditions and framework for making such payments (distinct from the situation where there's an employment arrangement, which is covered by separate guidance on employing a trustee or connected person, also issued in April 2025)
Charity Meetings (CC48) - this guidance explains:
- ways you can hold meetings, such as face to face, virtual or hybrid
- the types of meeting your charity can hold, such as trustee meetings and annual general meetings (AGM)
- how to make sure your charity’s governing document has the rules you need to hold meetings
Protecting your charity from fraud - this emphasises the importance of having an anti fraud policy, training your staff on it and doing regular checks to ensure it's being followed. It signposts to a very useful website called ‘Preventing Charity Fraud’ which has useful help sheets on subjects like failure to prevent fraud and cross border fraud.
Charity trustee decision making (CC27) - This guidance is half the length it was previously – but the basic principles of good decision making remain unchanged – acting in good faith and managing conflicts, for example. The guidance also addresses problem areas such as the recording of decisions and the need to make decisions ‘collectively’.
Conflicts of Interest (current guidance) - unless well managed, conflicts of interest can cause serious damage to a charity’s reputation. Poorly managed conflicts form a significant part of the Charity Commission’s regulatory work. The Commission is currently undertaking a wholescale review of its conflicts of interest guidance, along the same lines – briefer and simpler.
If you have any questions please contact Sarah Williams.
Our content explained
Every piece of content we create is correct on the date it’s published but please don’t rely on it as legal advice. If you’d like to speak to us about your own legal requirements, please contact one of our expert lawyers.