New rules coming for Scottish charities

Scottish charities will soon be allowed to pay for indemnity insurance for trustees and the Court of Session will be given the power to impose a life ban on people acting as trustees under new legislation.

The Office of the Scottish Charity Regulator has advised charities in its monthly bulletin of the changes, which come as a result of the Public Services Reform (Scotland) Act 2010.

The act, which became law at the end of April, will also allow charities that have been directed by OSCR to take certain steps before they can be deemed to meet the charity test (the equivalent in Scotland of the public benefit test) to ask for a review by OSCR of what those steps should be.

The measure will also allow the regulator to vary the directions it has given to a charity by extending the time given to it to comply with directions, by removing the steps that the charity is required to take or by revoking a previous direction.

It will also permit the trustees of a charity to use its funds to pay for indemnity insurance that will protect them against “personal liability in respect of any negligence, default or breach of duty committed by them in their capacity” as trustees, directors or officers of any organisation that is carrying out activities on behalf of the charity.

The Scottish Government will publish a timetable for when the sections take effect, but expects to start introducing them on 1 August.