• there is no express (explicit) provision in the governing document prohibiting the relevant person from receiving the remuneration;
• the trustees (excluding the trustee who would be paid or who is connected to the person who would be paid) decide it is in the interest of the charity for the services to be provided by that person, and agree the amount or a maximum amount to be paid;
• before entering into the agreement, the trustees consider Charity Commission guidance about such payments;
• the amount is not more than is reasonable for the provision of those services by that person;
• the amount or maximum amount is then set out in a written agreement between the charity and the person; and
• only a minority of the trustees are at any time entitled to remuneration under such agreements or other arrangements.

THE CHARITIES ACT 2006: IMPLEMENTATION TIMETABLE

Updated 1/4/08.
The Charities Act 2006 is coming into effect in stages from 2007 until 2009 or later, with the first commencement order mostly taking effect from 27 February 2007, the second on 28 November 2007 and 1 April 2008, the third on 18 March 2008, and the fourth on 1 April 2008, and future orders on 1 October 2008 and 1 April 2009. No dates have yet been set for charitable incorporated organisations, registration of exempt charities and the new rules on licensing of public collections.

A plain English guide to the Act, entitled Charities Act 2006: What trustees need to know was published by the Office of the Third Sector and the Charity Commission in May 2007. It can be printed out as a pdf document from tinyurl.com/2apspb or used as an online interactive document at tinyurl.com/yuvqxd, or is available free of charge by ringing 0845 015 0100 and quoting URN 07/Z2 and the title of the publication. It is also available in Welsh and large format.

The Act (in pdf format) is at www.opsi.gov.uk/acts/acts2006/ukpga_20060050_en.pdf, and in html format at www.opsi.gov.uk/acts/acts2006/20060050.htm.
Explanatory notes to the Act are at www.opsi.gov.uk/acts/en2006/2006en50.htm.
The Charity Commission's guide to the main provisions is at www.charitycommission.gov.uk/spr/ca2006prov.asp.
The Office of the Third Sector's implementation timetable can be accessed via tinyurl.com/36p8fm. The fourth commencement order is at www.opsi.gov.uk/si/si2008/uksi_20080945_en_1.

Many of the provisions in the Act amend the Charities Act 1993. This is at www.opsi.gov.uk/acts/acts1993/Ukpga_19930010_en_1.htm.
Where the 2006 Act amends other legislation, the reference is given in the relevant section below.

It is expected that the Law Commission will work on a consolidated version of charity law during 2008, and that a consolidated Act or Acts might be enacted during the 2008/09 parliamentary session.

IN EFFECT FROM 27 FEBRUARY 2007
The Charity Commission
Publicity for Commission schemes
Commission power to give advice and guidance
Charity Commission power to enter premises and seize documents
Amending an unincorporated charity's powers and procedures
Deciding charity membership
Waiver of trustee disqualification
Relief of trustee liability
Purchase of trustee indemnity insurance
Reserve power to control fundraising by charitable institutions
Obligation to provide annual report to anyone who asks
Change in annual return threshold
Failure to submit annual reports or returns
Restrictions on mortgaging charity land
Connected persons for charity land transactions

IN EFFECT FOR FINANCIAL YEARS
STARTING ON OR AFTER 27 FEBRUARY 2007
Audit or independent examination of unincorporated charities
Audit or independent examination of charitable companies

IN EFFECT FROM 23 APRIL 2007
Registration threshold for small charities

IN EFFECT FROM 28 NOVEMBER 2007
Charity mergers

IN EFFECT FROM 18 MARCH 2008
Charity tribunal
Commission power to give specific directions for protection of charity
Commission power to direct application of charity property
Amending an unincorporated charity's objects
Amending a charitable company's memorandum & articles
Power to transfer all property
Suspension or removal from membership of the charity
Remuneration of trustees
Cy près provisions
Power to spend permanent endowment

IN EFFECT FROM 1 APRIL 2008
Charitable purposes
The public benefit test
Recreational charities
Statements by professional fundraisers, commercial participators and others raising funds

IN EFFECT FOR FINANCIAL YEARS STARTING ON OR AFTER 1 APRIL 2008
Requirement to report on public benefit in the annual report
Group accounts of unincorporated and incorporated charities
Audit or independent examination of charitable companies
Whistleblowing by auditors and independent examiners

EXPECTED TO COME INTO EFFECT 1 OCTOBER 2008
Registration of excepted charities

EXPECTED TO COME INTO EFFECT LATE 2008/EARLY 2009
Charitable incorporated organisation (CIO)

EXPECTED TO COME INTO EFFECT 1 APRIL 2009
Status of miners' welfare trusts and community amateur sports clubs

EXPECTED TO COME INTO EFFECT IN 2009
Registration of exempt charities

EXPECTED TO COME INTO EFFECT NOT BEFORE 2009
Public collections

Under s.73 of the Act, a review of the Act must start by November 2011, looking in particular at the status of the Charity Commission as a government department and the effect of the Act on excepted charities, public confidence in charities, the level of charitable donations and the willingness of individuals to volunteer.

Please note that the Charities Act provisions are set out below by topic and then in the order they would appear in The Voluntary Sector Legal Handbook, rather than in order of Charities Act section numbering or in chronological order by implementation date. It may not make much sense, but it's the way most of the website is structured.

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