Almost all universities and colleges have charitable status. The effect of this is that members of governing bodies are also charity trustees and subject to the requirements of charity law. On 1 June 2010 HEFCE became the principal regulator for the 110 higher education institutions in England, which had previously been exempt charities. The Financial Memorandum now includes provisions reflecting this principal regulator role. The reporting requirements apply for the 2010-11 financial year.
On 1 June 2010 students' unions, the autonomous Cambridge, Durham and Oxford colleges lost their exempt charity status. They are expected to register with the Charity Commission.
In
Wales charities are subject to the same legislation as in England. The Welsh Assembly Government is moving to a position where there will be no exempt charities in Wales. All Welsh charities will then be regulated (as charities) by the Charity Commission. Cardiff is the first university to register with the Charity Commission.
The Charities Act (Northern Ireland) 2008 will lead to all charities in Northern Ireland being required to register with the new Charity Commission for Northern Ireland. There will be no exempt charities and no concept of a 'principal regulator.'
In
Scotland the Charities and Trustee Investment (Scotland) Act 2005 has been in force for some time. Scottish charities have had to register with the Office of the Scottish Charity Regulator (OSCR). There is no concept of exempt charity in Scotland. The OSCR has already issued extensive guidance.
Charitable status confers benefits and raises issues for governors.
The Charity Commission has published guidance on research carried out by institutions, particularly that conducted with non-charitable organisations.