Changes to charity law, implemented by the Government today (27 November 2025), should mean fewer charities will be required to ask for the Charity Commission’s authority to make moral (‘ex gratia’) payments
From today charity trustees have new powers when considering if there is a moral rather than legal obligation to transfer some of their charity’s property.
Few charities ever face this situation, and payments typically relate to legacies where there is evidence that a person’s will does not reflect their final wishes.
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When considering if they should make a moral payment, trustees must now apply an objective rather than subjective test of moral duty; have the option to delegate the decision to staff; and may be able to self-authorise small moral payments.
To help charities work within the new legal framework, and only apply for Commission authority when needed, the charity regulator has updated its guidance for trustees.
The regulator also encourages trustees to refer to its general guidance on decision making (CC27) when considering a moral payment.
Key changes to moral payments, which apply from 27 November 2025, are:
Whether or not these powers are available in relation to any proposed payment depends on the individual case and charity. For example, the new statutory powers may not apply if a charity’s governing document or legislation explicitly restricts it.
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For some specific national charities, mainly museums and galleries, their governing legislation prevents them making moral payments relating to property in their collections. The new changes do not affect this position. They will, though, be able to make small moral payments below the relevant financial thresholds from other assets without Commission authority, or above the thresholds with Commission authority.
The new powers cannot be applied retrospectively, so any application already made to the Commission for permission to make a moral payment will be considered under the previous legislation.
Charities should apply to the Commission for consent only when needed. The regulator will continue to assess each request for authority on its own merits: checking if a reasonable decision has been made by the charity and its trustees have complied with their legal obligations.
Christine Barker, Head of Regulatory Authority at the Charity Commission, said:
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Notes to Editors