Charity & Philanthropy Focus – September 2026

Charities continue to operate against a backdrop of financial pressure, increasing regulation and evolving risks. Following International Day of Charity on 5 September, it is a timely opportunity to reflect on the vital contribution that charities, funders and philanthropic organisations make to society and their role in building resilience within communities.

In this edition, we explore a number of practical issues arising from that landscape, including how philanthropy can support long-term resilience, the effective use of restricted funds, governance policies and managing personal data breaches. We also consider the role of litigation in the charity sector and the wider considerations for trustees seeking to ensure their organisations remain effective, adaptable and well governed.

We hope you enjoy this edition and, if a topic raises a question, please do get in touch with your usual Wedlake Bell adviser or any member of our Charities team.

In this issue:

• Philanthropy: from crisis response to crisis readiness – as crises become more frequent and complex, we consider philanthropy’s role not only in responding to emergencies but also in strengthening preparedness. We explore the importance of community networks, organisational resilience and flexible funding, alongside the challenges charities face in maintaining the capacity needed to support future crisis response.
• Restricted funds: unlocking value for more effective use – charities can accumulate restricted funds that become difficult to manage or no longer reflect current needs. We explore how trustees can identify different types of restrictions, use statutory powers to modernise purposes where appropriate, and approach fund rationalisation in a way that supports effective use of charitable resources.
• Is it time for a policy health check?– policies can play an important role in governance, risk management and decision-making, but are often only reviewed when an issue arises. We consider the key areas trustees should assess, recent developments in guidance, and practical steps for ensuring policies remain current, proportionate and aligned with how the charity operates.
• Personal data breaches: what charities need to know – cyber incidents, supplier failures and human error can all lead to personal data breaches. We explain how to recognise a breach, assess whether it must be reported to the ICO, when affected individuals need to be informed, and the importance of maintaining records, reviewing procedures and learning lessons from incidents.
• When can a charity litigate? Key points for trustees– recent litigation involving the charity Sentebale has brought trustee decision-making around legal proceedings into focus. We explore when litigation may be justified, the duties trustees must consider, the circumstances in which Charity Commission or court consent may be required, and the importance of assessing costs, risks and potential impact on the charity.