Law Commission consultation on Social Investment: DSC Response

In June 2014 DSC responded to a consultation from the Law Commission on charities and social investment, a consultation which would inform the Charities (Protection and Social Investment) Bill in 2015.

In our response to the consultation DSC puts forward the following points:

• The power to make social investment already exists, both from unrestricted
  reserves and (to a lesser extent) permanent endowment.
•  However, we agree with the Law Commission that this power is not
  necessarily clear in the law.
• We therefore agree with the proposed new power to make social investments,
  subject to two important reservations:
  • Firstly, that the new power is introduced only with sufficient
    safeguards – we do not think the current proposals provide adequate
    safeguards at present.
  • Secondly, that the new power is not extended to covering permanent
    endowment. We are in agreement with the Commission on this matter.
• We recommend keeping Charity Commission guidance CC14 under regular
  review after the introduction of a new social investment power. Social
  investment remains a relatively new field and reforms to the law may increase
  participation. It is important the guidance remains relevant and up-to-date with
  practice.

Read our full response here.