Challenging charity registration

Published 1 August 2023

In a recent case, the charity Mermaids sought to challenge the decision of the Charity Commission to register the LGB Alliance as a charity.

This article looks at the outcome in the case and what it means for charities.

The outcome

The First Tier Tribunal (Charity) dismissed the appeal on the basis that Mermaids did not have standing to challenge the Commission's decision as it was not a person who was or might be affected by it.  As a result, there was no need for the Tribunal to consider the issue of whether the LGB Alliance had in fact been properly registered.

What was the case about?

Mermaids is a charity focused on supporting transgender, non-binary and gender diverse children, young people and their families. LGB Alliance focuses on advancing the rights of LGB individuals.

In the case, Mermaids alleged that it was entitled to challenge the decision of the Charity Commission to register the LGB Alliance as a charity on the basis that it is a party who "may be affected by the decision".  Mermaids argued that it had suffered real ham as a result of the decision by the Commission because the LGB Alliance had interfered with its work which impacted on its reputation and had financial implications.  Its charitable status had strengthened its ability to do so.

The Tribunal deemed that, while Mermaids and its supporters may have been affected "emotionally and/or socially" by the LGB Alliance, a person who disagrees with the views or actions of a charity is not sufficiently affected by the fact of its registration to pass the threshold to have standing in the Tribunal to challenge the registration. In addition, Mermaids had no legal rights that had been impinged by the decision to register LGB Alliance nor did the fact of registration relate to Mermaids' own work.  Mermaids was therefore found not to have standing to appeal against the registration.

What does this mean for charities?

This is thought to be the first time a charity has sought to strip another of its charitable status.  It has clarified legal technicalities around legal standing to bring such a challenge and the legal threshold for doing so.  This clarification is likely to make it very difficult for charities more generally to challenge the decision to register (or remove) another from the register.

The Charity Commission, responsible for registering charities, clarified that its role is to apply the law rather than regulate public debate on sensitive issues. It emphasised the importance of respect and tolerance and urged charities to refrain from demonising and undermining those with differing viewpoints.