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Policy update: February 2026

In a fast-moving political landscape, it is essential to keep up-to-date with current thinking and practice across our sector. At ACEVO, we seek to draw attention to new and developing issues that affect how leaders work. These policy updates offer sector news and insights linked to ACEVO’s organisational priorities, including governance, regulation and diversity, whilst also highlighting our influencing work and any relevant legislation.

Leadership

Pay and Equalities Survey

We have published the latest sub-report of the ACEVO Pay and Equalities Survey. The Survey is the most comprehensive source of data on charity CEO pay, benefits and leadership development. For more than 20 years, it has provided a crucial resource for sector leaders seeking insight into trends and challenges in governance, remuneration and representation.

The short briefing focuses on one aspect of the findings from the 2023, 2024 and 2025 surveys: CEO satisfaction with board diversity. For the full data set and analysis of these trends, plus so much more, the Pay and Equalities Survey reports are available for purchase.

ACEVO & Association of Chairs (AoC) board behaviours and dynamics survey results

In December 2025, AoC and ACEVO, in partnership with nfpResearch, ran a joint survey to explore CEO-chair relationships, board culture and governance. ACEVO and AoC members (CEOs, chairs and trustees) were asked to share their thoughts on what helps or hinders CEO-chair relationships, and how board culture and governance can best support strong leadership and decision-making.

Registration is now open for a free session sharing new evidence from the survey results, taking place on zoom on Thursday 30 April 5pm to 6pm.

Tim Harrison-Byrne (nfpResearch co-managing director) will be leading this interactive session with Roberta Fusco (head of influencing at ACEVO) and Liz Lowther (chief executive at AoC). As well as presenting the findings of the survey, they will be reviewing what we have learnt and sharing some recommendations on maintaining positive board and board-CEO dynamics and relationships.

If you’re involved in charity governance, this is a useful opportunity to engage with the evidence and join the conversation. Book your place now!

Diversity

Home Truths 2

We have published new videos featuring Lena Bheeroo (head of philanthropic partnerships and influencing at ADD International), Mandeep Rupra (director of equity and culture at Citizens Advice) and Frances Brown (governance and EDI specialist). In these videos, they share insights on what is needed to embed anti-racism at the heart of civil society.

In other exciting news, on day one of ACEVOFest, Lena who is also co-chair of Board Racial Diversity UK will be joining Mark Simms (CEO of P3) for a discussion on ethical leadership and governance. Together they will explore how charity leaders can strengthen accountability, transparency and ethical decision-making in an increasingly complex world.

If you want to be part of the conversations shaping civil society leadership, book your place now to attend our leadership festival in person or online, where you’ll gain access to all ten sessions across two days: thought-provoking keynotes, lively panel debates, networking opportunities and interactive Q&As with expert voices shaping the future of leadership.

Governance

Guidance on how charities can respond to the current hostile environment

The Charity Commission has issued guidance to help charities operate safely in an increasingly hostile environment, reaffirming their right to lawful campaigning whilst emphasising trustees’ duties to act in the charity’s best interests. It encourages charities to assess risks, strengthen safeguarding and security plans, work with police and local partners, report serious incidents and use reliable information sources, whilst remaining politically neutral and communicating early with funders if activities are affected.

Charity fundraising: a guide to trustee duties (CC20)

The guidance for trustees about charities raising funds from the public was updated in early February to make it more accessible and easier to use. The guidance covers areas like fundraising and your trustee duties, planning your fundraising and how much you can spend on fundraising. It also signposts to the Code of Fundraising Practice, which is based on the law and good practice. The code covers areas like different types of fundraising, fundraisers’ conduct and your responsibilities towards your charity’s volunteers who fundraise. Some charities must state in their trustees’ annual report whether they follow the fundraising code.

Legislation

Civil Society Covenant

Applications to sit on the Civil Society Covenant Council are now closed and more news is expected soon.

The tender process for the Local Covenant Partnerships Fund launched last month. The government is seeking to appoint a civil society organisation to deliver the £11.6m fund to strengthen partnerships between charities and local authorities. The fund will be invested over three years in 15 deprived local areas in England. The deadline for applications is 23 February, with interviews scheduled for March.

UK Finance (No. 2) Bill

The Finance (No. 2) Bill is currently progressing through the Commons and has now completed its Committee stage. The proposed VAT relief on business donations of goods could be a real win for charities. However, charity leaders will likely need to approve or update policies on accepting in-kind donations, ensure their organisation can clearly evidence how donated goods are used and ensure trustees understand the rules to avoid inadvertent breaches.

At the same time, changes to charity tax rules on areas such as tainted donations and approved investments mean leaders will need to pay closer attention to where money comes from and ensure due diligence on donors is strong enough. This will likely require closer working with auditors, accountants or tax advisers and could result in more board time spent on finance and risk, increased professional costs and more formal policies and documentation.

Crime and Policing Bill

The Crime and Policing Bill is currently in the House of Lords. Its public order and protest provisions have been widely debated, with civil society organisations warning that some measures could limit freedoms of expression and assembly.

For charity leaders, the Bill could have practical implications in two main areas. First, on compliance and governance: charities, particularly those working with children or vulnerable adults, may need to review safeguarding policies, update procedures and ensure staff and trustees are trained on any new reporting duties or legal responsibilities. Second, on advocacy and campaigning: charities that organise or participate in demonstrations or public campaigning should closely track how the public order provisions are finalised and implemented, plus assess potential legal risks to their activities.

Employment Rights Act 2025

The Employment Rights Act 2025 (formerly the Employment Rights Bill) will bring substantial changes to employment law, with phased implementation beginning this year. Key reforms include day-one protection from unfair dismissal, flexible working as the default position, enhanced rights around sick pay and parental leave and stronger employer duties to prevent harassment, including harassment by third parties such as service users, beneficiaries or partners.

For charity leaders, this will require more robust workforce planning, strengthened HR policies and processes and closer trustee oversight of employment risk. Charities particularly delivering frontline or high-risk services may also face higher legal and operational costs and will need to ensure their management practices, training and reporting systems are fit for purpose.

Elections Bill

The Elections Bill is expected to be tabled in the current parliamentary session and debates are expected around changes to voter age, voter ID, registration systems and political finance rules. Whilst the Bill offers potentially positive opportunities to deepen the sector’s democratic impact, it will also require careful compliance with charity law and close trustee oversight of politically sensitive activity.

As these updates show, the external environment for leaders and their organisations is shifting quickly. We will continue to share insights, resources and reflections to help leaders navigate changes with confidence. And we also want to hear from you! How are these changes affecting your organisation? Share your experiences with us at policy@acevo.org.uk.

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