PART 1Purposes, powers and governing documents

Permanent endowment

I1I213Total return investment

1

The Charities Act 2011 is amended as follows.

2

After section 104A insert—

104AATotal return investment: social investments

1

This section applies to a fund, or a portion of a fund, in respect of which a resolution under section 104A(2) has effect.

2

The charity trustees may resolve that—

a

the fund or portion, and

b

any returns from the investment of the fund or portion,

may be used to make social investments (within the meaning of section 292A) which they could not otherwise make.

3

While a resolution under subsection (2) has effect, regulations under section 104B(1)(b) and (ba) apply to—

a

the fund or portion, and

b

any returns from the investment of the fund or portion.

3

In section 104B (total return investment: regulations)—

a

in subsection (1)(a), for “section 104A(2)” substitute “sections 104A(2) and 104AA(2)”;

b

omit the “and” following subsection (1)(b);

c

after subsection (1)(b) insert—

ba

the use of a relevant social investment fund to make social investments (within the meaning of section 292A),

d

after subsection (1)(c) insert

, and

d

any steps that must be taken by charity trustees in respect of a relevant social investment fund in the event of a resolution under section 104AA(2) ceasing to have effect.

e

in subsection (2)(a), after “104A(2)” insert “or 104AA(2)”;

f

in subsection (6), for “section “relevant” substitute

section—

  • “relevant”

g

in subsection (6), at the end insert—

  • “relevant social investment fund” means a fund, or a portion of a fund, and any returns from the investment of the fund, or portion, in respect of which a resolution under section 104AA(2) has effect.