The new draft guidance on the relationship between charitable and non-charitable entities is complementary to other Charity Commission publications on areas such as conflicts of interest, trading subsidiaries and grant funding to non-charitable organisations. The guidance is designed to:

• Help trustees comply with their legal duties and keep the charity properly separate from the non-charitable organisation;
• Preserve their charity’s unique status and the range of tax and other benefits available to it;
• Prevent the benefits of charitable status being applied to the non-charitable organisation;
• Protect the charity’s public image and reputation; and
• Take the right steps if things go wrong.

The guidance is out for consultation until 15 May 2018, and is more important than it may first appear. Although the principles within it may change during the consultation process, they are still important, and even if the guidance is amended it reflects the regulator’s current thinking and concerns.