Charity Commission calls new reforms ‘major step forward’

The Gibraltar Board of Charity Commissioners has called the new Charities Act, which was recently approved by Parliament, as “a major step forward” that modernises the charity sector locally.

The Commission said the new legislative framework modernises charity law, strengthens governance and accountability, and introduces a proportionate and transparent regulatory regime designed to support charities of all sizes in carrying out their public benefit purposes effectively.

The reforms follow a year-long review process that began with the publication of the Government's Command Paper on charity law reform.

During that period, the Charity Commission consulted stakeholders, including trustees, community organisations, agencies and professional advisers, on the proposed changes.

Alongside the commencement of the legislation, the Charity Commission is finalising a dedicated website that will provide guidance and practical resources for charities and trustees in understanding and meeting their responsibilities under the new framework.

The website will include guidance on governance, trustee duties and risk management, as well as accounting, annual reporting, independent examination and audit requirements.

It will also provide practical forms and templates together with information on registration and regulatory obligations.

The Commission said the guidance had been designed to be accessible and proportionate, helping trustees meet their legal obligations while promoting high standards of governance, transparency and accountability.

It also plans to hold presentations, workshops and outreach initiatives once the legislation comes into force to help trustees, charity officers and professional advisers understand key aspects of the new framework, including governance, reporting obligations, safeguarding and financial crime prevention.

Among the changes introduced by the legislation is a comprehensive annual reporting and filing regime for registered charities, including annual returns, trustees' annual reports, and accounting and scrutiny requirements proportionate to the size and complexity of each charity.

The Commission said the reforms were intended to strengthen transparency, consistency and public confidence while avoiding unnecessary regulatory burdens on smaller charities.

As the independent regulator of charities in Gibraltar, the Charity Commission’s functions include maintaining the public register of charities, determining applications for charitable status, overseeing compliance with the legal framework, and supporting trustees through guidance and regulatory oversight.

The legislation also provides the Charity Commission, as Gibraltar's independent regulator of charities, with updated statutory powers to investigate misconduct or mismanagement where concerns arise and to take proportionate protective or enforcement action where necessary to safeguard charitable assets and maintain public trust.

“The enactment of the new Charities Act marks a significant milestone for Gibraltar’s charity sector,” Chief Charity Commissioner Lewis Baglietto said.

“These reforms modernise the legal framework governing charities and provide a clearer, more proportionate and more transparent system which reflects the current realities and expectations of this sector.”

“The new framework is designed not only to strengthen accountability and public confidence, but also to support trustees by providing clear guidance, practical resources and a regulatory structure that is both fair and proportionate.”

“This has been a collaborative process involving engagement with many interested parties across the sector over the past year, and I would like to thank everyone who contributed to the development of the new regime.”

“We believe these reforms will have a positive and lasting impact on charities, trustees, donors, beneficiaries and the wider community, helping to strengthen public trust and support the continued growth and effectiveness of the charitable sector in Gibraltar.”

The Charity Commission has encouraged trustees, charity officers, independent examiners and professional advisers to familiarise themselves with the new framework and make use of the guidance that will be available on its website.

It will also launch a public education initiative, Understanding Charities: A Practical Guide for Trustees and the Public, beginning with an introductory article on the principal changes introduced by the Charities Act 2026.

The initiative will continue with a series of articles examining trustee responsibilities, governance, accountability, transparency and public trust as part of the Commission's wider programme to support charities adapting to the new legislative framework.

The Commission said the series is intended to support trustees, charity officers, professional advisers and members of the public in developing a greater understanding of the principles that underpin an effective, accountable and trusted charitable sector and forms part of the Charity Commission's wider commitment to promoting good governance, enhancing public confidence and supporting charities in adapting to the new legislative framework.