Commission calls for merger rules in future legislation

The Home Office should include measures facilitating mergers in any forthcoming charity legislation, the Charity Commission said this week.

In an interim report on collaborative working and mergers, the commission endorses the call in the Strategy Unit's report Private Action, Public Benefit for a more favourable legal climate for mergers between charities.

The commission's report also found that just over a fifth of charities currently work collaboratively. Five per cent of charities exist because of a merger in the past 10 years, while 13 per cent of large charities have either merged or actively considered a merger in the past decade.

"Trustees should be alive to the potential benefits their charity and its users or beneficiaries might gain from collaborative working arrangement and mergers," the report states. "They should carry out regular reviews to explore their strategic position and possible partnership arrangements."

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