Some charities don’t understand the implications of the Equality Act 2010, and could be putting their charitable status at risk, warns a study into the impact of the Act by the University of Liverpool’s Charity Law and Policy Unit.

The Equality Act 2010, which came into force in the autumn of 2011, tightens the exceptions that allow charities to target services at particular sectors of the population, such as along gender lines.

The year-long study at the University was funded by the Leverhulme Trust to assess the impact of the legislation on the sector. Researchers carried out 45 interviews with lawyers, charity representatives, and regulators and held two interactive workshops.

Debra Morris, director of the Charity Law and Policy Unit who led the study, said: “There is a lack of understanding around the exceptions in the Act. Most charities have not considered that their targeted service provision might be discriminatory.

“Charities tend to believe that a challenge to their targeted provision is unlikely due to the regulator's reduced resources. Charities are unlikely to appreciate that non-compliance with the Act may mean that they are considered not to be acting in the public benefit, resulting in loss of charitable status.”

According to the study, religious and higher-education institutions may be most exposed and older charities should check that their charitable objectives are still viable under the new legislation.  

Interaction between charity law and equality law

Morris added that the study also found that: “The inter-relationship between the Act and charity law is one of the questions which this study has shown to be particularly problematic.

“The question of whether a charity’s core activities should be regulated by reference to the Act, or whether charity law with its public benefit requirement provides adequate safeguards to ensure equality, requires further consideration.”

Civilsociety.co.uk subscribers can read more on the implications of the Equality Act for charities and an explanation of the exemptions from articles in our archive.