Understanding Charities - A new era for charities in Gibraltar

A Practical Guide for Trustees and the Public: This is the first article in a 10-part series with the aim of helping readers better understand charities, trustee responsibilities and good governance. 

By Jose Julio Pisharello (*)

The Charities Act 2026 came into operation on 13 August 2026, marking an important milestone for Gibraltar's charitable sector. The new legislation provides a modern framework for the regulation and support of charities, strengthening governance, accountability and transparency while recognising the vital contribution that charities make to our community. 

The Act replaces the Charities Act 1962, legislation that served Gibraltar well for many decades, but which inevitably reflected the realities and expectations of a very different era. More than sixty years later, charities operate in an increasingly complex environment, with greater expectations regarding governance, stewardship and public accountability. The introduction of a modern, proportionate and transparent framework therefore represents an important step in the continued development of the sector. 

CHARITIES AND PUBLIC TRUST 

Today, Gibraltar is home to approximately 250 active registered charities supporting a diverse range of causes and activities. They assist vulnerable individuals and families, promote health and wellbeing, advance education, support sport and culture, protect the environment and contribute in many other ways to the quality of life within our community. 

The strength of the sector also reflects Gibraltar's long tradition of supporting charitable causes, whether through donations, fundraising, volunteering or individuals giving their time and expertise as trustees. 

Charities depend upon public trust and confidence. They are entrusted with resources, donations and goodwill, and rely upon that confidence to continue delivering public benefit effectively. Maintaining that trust requires not only dedication and generosity, but also sound governance, transparency and accountability. 

WHAT HAS CHANGED? 

The Charities Act 2026 introduces a number of significant reforms designed to strengthen confidence in the sector while ensuring that regulation remains proportionate and supportive. 

Key changes include: 

• introduction of annual returns for registered charities; 

• requirement for trustees' annual reports; 

• accounting and standardised financial reporting arrangements proportionate to the size and complexity of charities; 

• proportionate independent examination and audit arrangements tailored to the size and complexity of charities; and 

• modern statutory powers enabling the Charity Commission to support good governance, safeguard charitable assets and address misconduct or mismanagement where necessary. 

The new accounting, reporting, independent examination and audit requirements will apply in accordance with the relevant Regulations and transitional provisions. These arrangements are intended to apply to accounting periods beginning on or after 1 January 2027, giving charities time to prepare for the new requirements. Further guidance on their application and the relevant filing deadlines will be provided by the Charity Commission. 

These measures are intended not only to strengthen accountability, but also to provide charities, donors, beneficiaries and the wider public with greater confidence in the stewardship of charitable resources. 

SUPPORTING CHARITIES AND TRUSTEES 

An important feature of the new framework is the emphasis placed on supporting charities and trustees in understanding and meeting their responsibilities. 

To assist charities in adapting to the new regime, the Charity Commission is currently developing a dedicated website, which is expected to go live shortly. The website will provide practical guidance and resources for trustees, volunteers and professional advisers. 

It will include guidance on charity governance, trustee duties, risk management and safeguarding, accounting and annual reporting, independent examination and audit, together with practical forms, templates, filing resources, a searchable register of charities, and information regarding registration and ongoing compliance obligations. Guidance will also address areas such as fraud, financial crime and other emerging risks, together with practical measures charities can take to protect their assets and reputation. 

The website forms part of a wider programme of support which will also include presentations, workshops and outreach initiatives designed to help charities understand the new requirements, implement good governance practices and provide opportunities for questions and discussion. 

We recognise that change can present challenges, particularly for volunteer-led organisations. The Commission is committed to working collaboratively with the sector to support a smooth transition and to ensure that charities have access to the information and assistance they need to continue delivering valuable services to the community with confidence. 

LOOKING AHEAD 

Strong charities depend upon effective trustees, sound governance and a shared commitment to public benefit. Public trust remains the foundation upon which charities operate, and maintaining that trust is a responsibility shared by everyone involved in the sector. 

Over the coming weeks, I will be publishing a series of ten weekly articles entitled Understanding Charities: A Practical Guide for Trustees and the Public. The series will explain how charities operate, the responsibilities of trustees and the governance arrangements that help maintain public trust and confidence in Gibraltar's charitable sector. 

The ten articles will cover topics such as trustee duties, governance, financial stewardship, managing risk, safeguarding, transparency, accountability, independent examination and audit, succession planning and the challenges and opportunities facing charities in the years ahead. 

Whether you are a trustee, volunteer, donor, professional adviser or simply someone with an interest in the work of charities, I hope these articles will provide a practical insight to the principles that underpin a strong, transparent and effective charitable sector. 

(*) About the Author Jose Julio Pisharello is a member of the Gibraltar Charity Commission.