Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, what steps has he taken to monitor the conduct of charities when marketing commercial products.

This is a matter for the Charity Commission which, as independent regulator of charities in England and Wales, issued a regulatory alert on this topic on 29 February 2016 reminding charity trustees of their legal duties. The alert was published and sent to the 1,700 charities that the Commission identified to have some form of commercial arrangement. It made clear that trustees should review existing commercial arrangements and that failure to meet the relevant requirements could result in regulatory action.

Engaging in commercial activities can be a valuable way for charities to raise funds or generate awareness of its cause. It is the responsibility of the trustees to ensure that where a charity engages in commercial activity, either through a trading subsidiary or through a commercial partnership, they follow the legal framework, they have effective oversight and ensure this activity in the best interests of the charity. This includes protecting the charity’s name and reputation which are valuable assets.