Alexandru Guzun & Ors v Charity Commission for England and Wales
[2024] UKFTT 310 (GRC)
Andrea Shirland v Charity Commission for England and Wales
7 March 2024
[2024] UKFTT 187 (GRC)
First-tier Tribunal
Someone challenged a change to a charity's rules. A judge reviewed the change, using a three-part test, and decided the change was okay because it didn't go against the charity's original goals and helped it get funding. The judge didn't second-guess the charity's decisions, only checked if they were reasonable.
Key Facts
- •Andrea Shirland appealed a Charity Commission decision granting Whiteley Homes Trust consent to amend its objects under s.198 of the Charities Act 2011.
- •The amendment replaced 'homes appropriate to their needs' with 'Charitable social housing including but not limited to Alms-house Accommodation'.
- •Shirland, a beneficiary, argued the decision breached natural justice, applied the incorrect test, was irrational, and worked against the charity's previous objects.
- •The Tribunal considered the appeal afresh, applying a three-fold test from the Commission's operational guidance (OG518): (1) exclusively charitable objects; (2) rational trustee request; (3) no undermining of previous objects.
- •The Charity Commission's guidance is non-binding on the Tribunal.
- •The Tribunal found the proposed change did not undermine the charity's overarching objects and was a reasonable means to secure funding and comply with the Will.
Legal Principles
Appeals under s.319 of the Charities Act 2011 can be brought by a 'person affected'.
Charities Act 2011, s.319
The burden of proof rests on the appellant to show Consent should not be granted under s.198.
Hipkiss v. Charity Commission (CA/2017/0014)
The Tribunal's role is to ensure trustees exercise their discretion properly and not interfere unless they act improperly or unreasonably.
Lehtimäki and Others v. Cooper [2020] UKSC 33
The Charity Commission cannot be directly involved in a charity's administration or make decisions reserved for trustees (s.20).
Charities Act 2011, s.20
There is no legal obligation for a corporate charity to give public notice of an application for s.198 Consent.
Case Law Implication
Outcomes
The appeal was dismissed.
The Tribunal found the proposed object change was consistent with the charity's Will, was a reasonable decision by the trustees, and satisfied the three-fold test.
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