The Charity Commission has published guidance on how charities should manage their relationships with non-charities.
The guidance aims to ensure that these relationships are contributing to an organisation’s charitable purpose for the public benefit. It has been developed following an extensive period of sector consultation and is based on existing trustee duties.
The commission says that it is common for charities to have close relationships with non-charities, for example trading subsidiaries or charities established by commercial businesses.
However, it also states that trustees must manage these relationships in order to fulfil legal duties and maintain public trust.
The guidance is divided into six main rules: recognise the risks, do not further not further non-charitable purposes, operate independently, avoid unauthorised personal benefit and address conflicts of interest, maintain your charity’s separate identity, and protect your charity.