Charity Disputes

LBMW’s charity lawyers provide legal advice for charities in respect of all types of charity disputes, ranging from matters of internal governance to advising on disputes between trustees and beneficiaries or with third parties. Often we assist in navigating matters investigated by the Charity Commission.

We work closely together with the charity trustees to resolve disputes efficiently and effectively. We are aware how important it is that charity resources are appropriately used and that a charity’s reputation must be appropriately safeguarded.

Our team frequently advises on:

• Disputes arising from charity governance;
• Employment disputes including unfair dismissal, discrimination and whistleblowing;
• Board conflicts, including trustee appointments, trustee duties, and trustee remuneration;
• Conflicts of Interest;
• Challenging wills and protecting legacies;
• Charity dissolutions and related disputes;
• Public law disputes, including judicial review proceedings;
• Protecting property and land rights;
• Debt recovery.

Our team also provides comprehensive policy and governance reviews, and advises on best practice and proactive charity governance to avoid and prevent potential disputes from arising in the future.

Contact our expert charity lawyers today

If you require any assistance with charity and not for profit law, contact our expert charity law solicitors:

Phone no.: 0207 222 5381

Email: khalid.sofi@lbmw.com.

You can also make an enquiry by filling out the Enquiry Form on www.lbmw.com.

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How LBMW's Charity Law Solicitors can help you handle charity disputes

Employment disputes in charities

We provide advice to charities on of the full range of employment disputes. Our charity and employment teams work together and understand the complex challenges charities can face - whether the issue involves unfair dismissal claims, grievances, workplace discrimination, whistleblowing or volunteer-related issues, we assist with resolving matters efficiently, while also safeguarding employee welfare and the charity's reputation.

We always aim to resolve issues quickly to minimise any disruption to the charity's operation, however, where needed, we will provide robust representation at employment tribunals.

Trustee responsibilities

LBMW’s charity solicitors help trustees in understanding their legal and regulatory duties and responsibilities to assist them in avoiding potential issues and disputes arising.

We advise trustees on key governance issues, ranging from trustee appointments and fiduciary duties, through to managing conflicts of interest, handling trustee remuneration, or dealing appropriately with delegation of powers. We also assist with mediating more general board disputes, including disagreements over strategy or operational management.

Having a clear understanding of trustee duties can enable the trustee board to avoid and prevent disputes that would otherwise arise from the mismanagement of their charity.  

Addressing conflicts of interest

Conflicts of interest can arise between charity trustees when their personal, professional or financial interests conflict with their duty to act solely in the best interest of the charity.

We provide tailored legal advice to charities to help them identify and effectively manage such conflicts. By guiding trustees through the process of documenting and handling conflicts transparently, we assist the charity with safeguarding its integrity, and reduce the risk of intervention by the Charity Commission.

To prevent mismanagement of conflicts, our charity lawyers can also assist with drafting robust policies and implementing strict conflict management procedures.

Charity dissolution: winding up and dissolving charities and not-for-profit organisations

We understand that dissolving a charity is often a difficult decision, and one which requires careful planning and expert legal advice. We can provide a step-by-step guidance to charity trustees on the process of charity dissolution including advising on asset re-distribution in accordance with the charity's objects and its governing document.

Public law disputes: representing charities in judicial review

Judicial review is a vital mechanism for charities to challenge decisions made by public bodies that could be seen as unlawful or procedurally unfair.

Our team provides legal advice to charities on all aspects of the judicial review process, from assessing the merits of a claim through to representing the client in court proceedings.

We are committed to providing timely and strategic advice to all clients in charity disputes with a focus on achieving a favourable outcome, and where necessary, holding public bodies accountable.

Frequently asked questions about charity disputes

What are the common causes of charity disputes?

Charity disputes often arise due to disagreements between trustees over governance. However, poor charity management including mismanagement of funds, undeclared conflicts of interest, allegations of misconduct, or breaching governance policies can also lead to disputes. External matters, such as disputes between trustees and service providers or donors may also arise. Where a dispute or allegation is serious, the Charity Commission may launch an investigation into the charity's affairs to identify and rectify any issues present, and to ensure future regulatory compliance.

What is the role of the Charity Commission in dispute resolution?

The Charity Commission focuses on ensuring good governance within charities while also overseeing charity regulatory compliance. It publishes guidance to assist trustees with setting up and running their charity in a compliant way and may use its statutory powers to direct action where serious issues of mismanagement or misconduct arise. However, the Charity Commission does not act as a court of law – its primary mission is to ensure that charities meet their legal and regulatory requirements, while it also aims to build public trust in charitable organisations.

What are my rights as a trustee in a governance dispute?

In a charity dispute as a charity trustee, you always have the right to express your views to the other trustees and participate in governance discussions, with the aim of resolving such conflicts.

However, where internal discussions don't lead to a resolution, charity trustees have the right to seek independent legal advice. Where the trustees' concerns are more serious, they can also escalate issues to the Charity Commission for guidance and intervention.

It is important to keep in mind that charity trustees have a duty to act in the best interest of their charity - therefore, it is essential to seek legal or regulatory advice where an unresolved dispute may have detrimental consequences to the charity, its funds, or its beneficiaries. 

What legal protections do charity trustees have against claims?

Charity trustees can rely on several safeguards to protect themselves and their charity's operations.

Most importantly, trustees of incorporated entities such as Charitable Companies and Charitable Incorporated Organisations have 'limited liability'. This means, that the trustees' liability is restricted to the charity's assets, and it does not extend to the trustees' personal assets.

However, to protect not just the assets of the trustees, but also the assets of the charity, the charity may rely on insurance - such as public liability insurance - to cover claims made against the organisation.  Our charity lawyers provide assistance to trustees to proactively comply with charity law and manage risks efficiently, with the ultimate goal of protecting both the trustees and the charitable organisation from any claim arising.   

How can LBMW charity law solicitors help with charity disputes?

We are regularly involved with charity clients where a dispute is brewing. Where we can, we will provide advice designed to stop a dispute escalating. Sometimes however, that is not possible, or we are involved once the dispute has germinated. Whenever we become involved, our solicitors can provide valuable input mediating disputes, facilitating communication and proposing, as well as implementing resolutions. Ultimately if a matter is heading towards litigation, we will provide clear and commercial advice in the charity’s best interests whilst operating as a reassuring presence for the instructing trustees.