C35

Prospective affecting provision: section inserted by Charities (Amendment) Act 2024 (21/2024), s. 34, not commenced as of date of revision.

F76[88C.— (1) A charitable organisation may enter into an agreement with a relevant person for the provision by the relevant person of a service to, or on behalf of, the charitable organisation for remuneration (in this Part referred to as an “agreement”).

(2) Remuneration provided to, or on behalf of, a relevant person under an agreement shall not exceed what is reasonable and proportionate having regard to the service provided by the relevant person.

(3) A charitable organisation may appoint a current employee of the charitable organisation as a charity trustee (in this Part referred to as an “appointment”), which appointment shall be in accordance with any regulations made under subsection (7)(a).

(4) A charitable organisation shall not enter into an agreement or make an appointment—

(a) in contravention of the express provisions of its constitution, and

(b) unless the charity trustees of the charitable organisation (not counting a charity trustee who is a party to the agreement or appointment or a charity trustee who has a personal connection with a party to the agreement or appointment) are satisfied that the agreement or appointment would be in the best interests of the charitable organisation.

(5) Where a charitable organisation has entered into an agreement or made an appointment in a financial year, the annual return (within the meaning of section 52) shall include a declaration that the charity trustees of the charitable organisation referred to in subsection (4)(b) are satisfied that the agreement or appointment is in the best interests of the charitable organisation.

(6) Each charitable organisation shall keep a register of agreements and appointments.

(7) The Minister may prescribe—

(a) the circumstances in which a charitable organisation (other than a charitable organisation referred to in subsection (12)) may make an appointment having regard to the requirements of different charitable organisations,

(b) the particulars to be included in a declaration under subsection (5), and

(c) the particulars to be included in a register under subsection (6).

(8) Where in relation to an agreement or appointment there has been a contravention of this Part, the agreement or appointment, as the case may be, shall be null and void.

(9) Subsection (8) shall not operate to prevent a charitable organisation or a relevant person that has acted in good faith from recovering damages in respect of any loss incurred by it, him or her by virtue of an agreement or appointment to which that subsection applies.

(10) A person who, in purported compliance with this section or regulations made under this section, knowingly or recklessly provides information or a particular to the Authority that is false or misleading in a material respect, or who believes any such information or particular when provided by him or her, in purported compliance with this section, not to be true, shall be guilty of an offence.

(11) The charity trustees of a charitable organisation in respect of which there is a contravention of this Part or regulations made under this section shall each be guilty of an offence.

(12) Subsections (5), (6) and (10) do not apply to an education body or a public body.]