New Charity Rules Set to Transform Scottish Sector: Key Updates for 2025

The Scottish Government is rolling out significant changes to charity regulations with the commencement of crucial sections of the Charities (Regulation and Administration) (Scotland) Act 2023. Here's what you need to know:

What's Happening?

On 30 June and 31 August 2025, several provisions from the 2023 Act will come into force, aiming to enhance transparency, accountability, and alignment with UK charity regulations.

Key Changes:

1. Trustee Information (Effective 30 June 2025):

   • The Office of the Scottish Charity Regulator (OSCR) will maintain a comprehensive schedule of charity trustees. This will help OSCR effectively oversee the sector. Charities will supply this info via an enhanced annual return process or updates through the OSCR Online portal.

2. Disqualification Criteria (Phased in from 30 June to 31 August 2025):

   • Expanded criteria will disqualify certain individuals from being charity trustees, including those in senior management roles. Affected individuals can apply for waivers if needed.

3. Charity Mergers and Legacies (Effective 30 June 2025):

   • New rules will ensure charity legacies aren't lost during mergers. A record of charity mergers will be maintained to facilitate the transfer of legacies to the appropriate successor charities.

Why These Changes?

The updates are designed to modernize Scotland's charity laws, aligning them with standards in other parts of the UK while addressing sector-specific needs. These measures stem from extensive consultations starting in 2018, involving stakeholders like OSCR, legal experts, and charity representatives.

Public and Sector Engagement:

Through surveys and targeted events, the charity sector broadly supports these changes. Consultations revealed a need for further refinement, which was addressed in the final legislation.

Impact Assessments:

Comprehensive impact assessments have been conducted to ensure these changes are beneficial, non-discriminatory, and sensitive to various community needs.

Final Thoughts:

These updates promise to bolster trust and confidence in Scotland's charitable sector, ensuring it remains robust, transparent, and capable of serving communities effectively. Keep an eye on OSCR's updates to ensure compliance and take advantage of the new provisions aimed at safeguarding charity legacies.