This is becoming more common as charities are called upon to do activities and services that may have been previously filled by, for example, local authorities. Charities are expected to adapt in order to meet the needs of beneficiaries and in order to do so, links with commercial and not-for-profit organisations emerge.
Following the Charity Commission’s recent regulatory report on Age UK’s partnership with energy company, E.ON, it has issued brief guidance to assist charities that partner with commercial organisations or are looking to do so in the future.
The Charity Commission is not trying to dissuade charities from entering into partnerships with commercial organisations - the Commission appreciates that such agreements can be beneficial to the charity through raising awareness and funds. However, when entering into agreements or partnership with commercial organisations, the trustees must be mindful of the risks to the charity’s reputation.
Commercial organisations may enter into agreements with the charity itself or the charity’s trading subsidiary.
The Charity Commission advises trustees to:
If the charity’s trading subsidiary enters into an agreement or partnership with a commercial organisation, as well as complying with the guidelines referred to above, the trustees will also need to:
The alert from the Charity Commission serves as a helpful reminder for trustees to review agreements and partnerships with commercial organisations, especially where such roles have previously been delegated to others, such as fundraising staff.
If you require further information about entering into an agreement or partnership with commercial organisations, please contact a member of the Charities Team on 0121 212 7450, charities@anthonycollins.com.
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