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In this update, Wrigleys Solicitors look ahead to key legal developments charities can expect in 2026 and what they mean for leading your organisation.
Charity Commission: increased capacity and updated guidance
In 2026, we should expect to start seeing the impact of increased funding for the Charity Commission for England and Wales, including more case officers and improved use of data and technology.
The Commission has recently published updated versions of its guidance:
- CC7 How charities can make a moral, or ‘ex gratia’, payment (see below)
- CC20 Charity fundraising: a guidance to trustee duties
- CC29 Conflicts of interests: a guide for charity trustees
Further updated guidance is also expected, including:
- CC26 Charities and risk management
- The Equality Act: guidance for charities
The Equality Act guidance is likely to be revised following updated EHRC guidance and the 2025 Supreme Court decision on the definition of ‘sex’ in the Equality Act 2010.
CEOs should ensure their governance, fundraising, and risk frameworks are up to date and aligned with revised guidance, and that trustees are supported to understand and apply it.
Ex gratia payments: new statutory framework
Changes under the Charities Act 2022 (in force from November 2025) introduced a new objective test for ex gratia payments, based on whether trustees could reasonably be regarded as under a moral obligation to make the payment.
Trustees can now make smaller ex gratia payments without Charity Commission consent (subject to limits and some exclusions), and may delegate decisions.
CEOs should ensure clear internal policies, delegated authority frameworks, and audit trails are in place for these decisions, given the increased autonomy and associated accountability.
Data protection – new soft opt-in for charities
The Data (Use and Access) Act 2025 introduces a new “soft opt-in” for charity electronic marketing, which came into force on 5 February 2026. This allows charities to contact individuals by email or text where there has been prior engagement, provided opt-out requirements are met – see the ICO guidance published in April 2026.
Charities should review marketing practices, consent mechanisms, and CRM systems to ensure compliance. CEOs should balance the opportunity to increase engagement and income with oversight of reputational risk and supporter trust.
Consumer protection: subscription rules and Gift Aid
The Digital Markets, Competition and Consumers Act 2024 will introduce new requirements for subscription contracts, including cooling-off periods, expected from Spring 2027. The Government has confirmed that some charitable memberships will be excluded from these requirements. These are expected to be those primarily related to access to charitable, cultural or heritage assets that advance the charity’s purposes, but details are awaited.
Charities with membership or subscription models should review terms and processes, particularly where Gift Aid applies. CEOs should ensure cross-team coordination (legal, finance, fundraising) to manage potential income and compliance impacts.
Trustee status: potential employment law implications
A recent tribunal case involving the British Psychological Society decided that a charity trustee did not qualify as a “worker” for whistleblowing protections. However, the decision is not binding on other tribunals and is based on the facts of the particular case, including that the charity trustee in the case was unpaid.
If the position changes, there could be wider implications for trustee and other volunteer roles and legal protections. CEOs should monitor developments and consider any impact on governance structures, policies, and risk exposure, including any policy on whistle-blowing disclosures by a charity trustee or other volunteer.
Employment law: new rights framework
The Employment Rights Act 2025 has begun implementation from around April 2026, with further changes through to 2027.
Charities should review employment policies and prepare for expanded employee rights. CEOs should assess potential operational and cost implications, and ensure HR functions are ready to implement changes effectively. For a guide to key points in the Act, see our article Employment Rights Act 2025 – key points employers need to know now.
Tax: tightening compliance and new rules
The Finance Act 2026 has introduced changes from April 2026 including:
- Revised “tainted donation” rules (focusing on outcomes and a broader “financial assistance” test)
- New conditions for approved charitable investments
- Legacies treated as attributable income (must be applied for charitable purposes)
- Restriction of IHT relief to UK charities
HMRC is also increasing its focus on compliance, with potential sanctions for non-compliance and stricter Gift Aid requirements. Late filing penalties for corporation tax will double from April 2026.
CEOs should ensure robust financial oversight, review tax compliance processes, and seek advice where needed to mitigate risk.
Financial thresholds: changes from October 2026
Thresholds for audit, reporting, and certain fundraising provisions will increase from 1 October 2026.
Charities must check which thresholds apply to their structure and jurisdiction, as alignment has not been achieved. CEOs should ensure finance teams assess the impact and adjust audit and reporting arrangements where required.
How Wrigleys can help
Wrigleys Solicitors is a specialist charity and private client law firm advising charities and not-for-profit organisations.
If you would like to discuss any aspect of this update, please contact the Charities and Social Economy team on 0113 244 6100.
The information in this article is necessarily of a general nature. The law stated is correct as at 30 April 2026. A fuller version of this article was first posted to our website in January 2026.