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.
- Firstly, that the new power is introduced only with sufficient
- 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.