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Charity mergers (2): practical steps
Practical Law UK Video and Audio w-031-0317 (Approx. 6 pages)
Charity mergers (2): practical steps
by Mimi Barbaro, Charity Commission, with Practical Law Private Client
| Law stated as at 19 May 2021 • England, Wales |
This is the second of two videos in which the Charity Commission provides practical insights into the charity law issues that commonly arise when charities seek to merge, as well as the regulator's role in facilitating such mergers.
This video looks at the practical steps to effect a merger between charities. It starts by looking at key statutory powers that charities may wish to use to transfer assets (subject to liabilities) from one charity to another. It then considers the circumstances in which it may be necessary to approach the Commission for assistance in relation to a charity merger, limitations on the regulator's role and the issues that it considers before exercising its powers.
Finally, it outlines the steps that charities may need to take in relation to the Commission after a merger has completed and provides guidance on the need to factor timescales for obtaining assistance from the Commission into planning a charity merger project.
Video chapters:
- Steps involved to give effect to a merger.
- When to ask the Charity Commission for assistance.
- What happens after a merger?
- Planning and timescales.
To view the first video, see Video, Charity mergers (1): assessing your options.
For a transcript of this video, see Charity mergers (2): practical steps (video transcript).
For more videos and podcasts, see our Video and audio homepage.
Charity Commission guidance
The following Charity Commission guidance is referred to in, or is relevant to, this video:
Mergers and collaborative working
Transferring charity assets
Charity structures
Changing a charity's governing document
Charity trustees
Closing a charity
Permanent endowment
Further guidance
For Practical Law's guidance on:
- Unincorporated charity powers to merge, see Practice note, Charity incorporation: key issues: Statutory power to transfer.
- Pre-merger vesting declarations, vesting orders and the Register of mergers, see Practice note, Charity incorporation: overview: Pre-merger vesting declaration, Vesting order and Register of mergers.
- Permanent endowment, see Practice note, Permanent endowment.
- Trust corporation status, see Practice note, Trust corporations: overview.
- Transferring property on a change of trustee, see Practice note, How to deal with land on a change of trustees: Trustees of charity land.
- Amending charity governing documents, see Practice notes, How to amend the governing document of a charity: overview, How to amend the governing document of an unincorporated charity, How to amend the articles of association of a charitable company and Administering a charitable incorporated organisation (CIO): Amending a CIO's constitution.
- Managing conflicts of interest and obtaining the Commission's consent when an unincorporated charity merges with a corporate charity, see Practice note, Charity incorporation: key issues: Managing conflicts of interest and Commission consent.
- Obtaining the Commission's consent to a substantial property transaction, see Practice note, Charity incorporation: key issues: Substantial property transactions.
- Duties of charity trustees, see Practice note, Duties of charity trustees: an overview.
- Conflicts of interest, see Practice note, Charity trustees and conflicts of interest.
- Accounting for charity mergers, see Practice note, Charity accounting standards: Charity mergers and restructuring.
To access all of our resources on charity law and practice, see For charity lawyers.