The Charity Commission’s new guidance about charity mergers is quietly transforming the charity landscape – and Great Ormond Street Hospital is leading the charge. If your charity isn’t thinking about merger strategy yet, it’s time to catch up.
Charity mergers: What’s changed – and why it matters
Charity mergers used to be a legal minefield. Risky. Tedious. Burdened with endless red tape. But the Charity Commission’s newly updated guidance on the Register of Merged Charities (published in June 2025) has subtly, but significantly, changed the game.
Thanks to reforms brought in under the Charities Act 2022, and now fully embedded in Charity Commission guidance, the process of consolidating charities has become clearer, cleaner and safer. Merged charities registered with the Charity Commission can now benefit from a critical protection: legacy gifts intended for the original charity can flow automatically to the successor charity – without court orders or legal gymnastics.
In other words? No more shell charities. No more lost bequests. And a powerful reason for boards to revisit long-postponed merger plans.
The GOSH example: 50+ mergers in one day
If you want proof that this isn’t just legal theory, look no further than Great Ormond Street Hospital Children’s Charity. On 25 October 2024, something remarkable happened: over 50 individual charitable funds were merged into GOSH’s main charity in one fell swoop. From the “Audiology Department Fund” to the “Cystic Fibrosis Research Fund”, decades’ worth of bespoke, restricted-purpose charities were absorbed, all in line with the updated guidance and listed on the Commission’s register.
It wasn’t a crisis move. It was strategy. Vision. Housekeeping for the 21st century.
By registering those mergers, GOSH ensured that any legacy gift still destined for one of those historical funds would now safely and lawfully pass to the parent charity. No assets trapped. No confusion. No delay. That’s governance at its best.
Why this matters for everyone – not just the big names
You don’t have to be a big hospital or a household name to benefit from this change.
Smaller charities, especially those with legacy project funds, memorial foundations, or overlapping causes now have a golden window of opportunity. The merger register mechanism isn’t just for high-profile consolidations. It’s for any charity that wants to:
- simplify governance
- cut audit and administrative duplication
- preserve legacy income without legal wrangling
- futureproof operations in an uncertain funding climate
For example, a local hospice that has run a series of historic “Friends of…” funds or endowed memorial accounts could now bring them under a single CIO umbrella. Legacy donations earmarked for the old funds would remain valid, thanks to the updated registration protections.
The legal magic: what the new guidance on charity mergers says
The Charity Commission’s guidance now provides clarity on:
- When a merger should be registered (particularly when assets are transferred and the original charity is wound up or made dormant).
- What effect registration has on legacy gifts.
- How to manage declarations of trust, vesting declarations, and the continuity of donor intentions.
Under the new rules, legacy gifts can pass to the successor charity without the need to keep the original charity on life support, purely to receive them. This removes one of the most frustrating quirks of charity law – and makes mergers a realistic, pragmatic choice for even the most cautious board.
Top tips for trustees considering a charity merger
Before jumping in, ask yourself:
- Do you have legacy or project funds held in separate entities that could be unified?
- Would a merger help reduce costs or enhance clarity for donors?
- Have you considered the reputational impact – and how to communicate it well?
- Is your charity listed on the merger register where appropriate?
- Do your governing documents or donor agreements need review in light of a merger plan?
Pro tip: work with your legal and financial advisers early. The new regime is clearer, but the devil still lives in the detail of course.
The sector is warming up
According to recent research, charity mergers rose by 31% in the past year, and the total value of merged charities increased fivefold. The post-pandemic funding squeeze, staffing challenges, and inflation pressures have all accelerated the need for smarter structural solutions.
But the game-changer? It’s no longer just a crisis response. With the Charity Commission’s new guidance in place, mergers are becoming a proactive governance tool.
Final word on charity mergers: from messy to strategic
Final word on charity mergers: from messy to strategicCharity mergers used to feel like the messy divorce no one wanted to talk about. But today, they look more like strategic marriages – uniting missions, consolidating strength, and preserving donor impact.
The updated Charity Commission guidance turns a once-daunting process into something rather elegant and effective.
So, if your charity has been kicking merger ideas into the long grass, now is the time to look again. The grass is greener than it used to be.
Do get in touch you would like to explore the merger register or assess your charity’s position. At Elite Law Solicitors, we can help you navigate this shifting landscape. Get in touch today and book a free initial consultation by calling 0800 086 2929, emailing info@elitelawsolicitors.co.uk, or by completing our Free Online Enquiry Form.
