The government has introduced new provisions to help businesses continue operating and avoid insolvency during this period of economic uncertainty due to coronavirus (COVID-19).
These provisions apply to charitable companies and the majority of the provisions also apply to Charitable Incorporated Organisations (CIOs). We have updated our COVID-19 guidance for the charity sector with information about the new provisions.
This guidance is about how trustees can reduce the risk of insolvency. It sets out the responsibilities of trustees and what insolvency means to the charity.
The guidance explains:
- the charity trustees’ duties in relation to the protection of their charity’s assets
- why the charity trustees need to have a good knowledge of their charity and its finances
- what the charity trustees need to know about the charity’s assets and if their use is restricted
- that a charity may face insolvency if it’s unable to pay its debts
- when the trustees may be liable for any debts