HMRC have updated the guidance for charities on the Fit and Proper Persons Test. This guidance is for trustees of charities (including directors of corporate trustees), directors of corporate charities, any employees of a charity and volunteers who:

  • act on behalf of a charity
  • are involved in appointing people to act on behalf of a charity

to claim tax reliefs or to exert control over spending the charity’s funds.

In order to be defined as a charity, an organisation must satisfy the “management condition”. In turn, for a charity to satisfy the management condition its managers must be “fit and proper persons”. There is no definition in law of a “fit and proper person”. This guidance explains how HMRC applies this test to people who have the general control and management of the administration of the charity.

The guidance can be accessed here: