Exempt charities – a guide for higher education providers

This guide explains:

• how universities and colleges that are exempt charities are regulated
• what they must report to the Offce for Students
• the OfS's role.

What are exempt charities?

All charities have charitable status and must comply with charity law. Some charities are registered with the Charity Commission and regulated directly by it. These charities have registered status.

Other charities are exempt from registration with the Charity Commission. These charities are normally regulated by a body or authority –  or a 'principal regulator' – under another legal framework. These charities have ‘exempt status’.

The Office for Students is the principal regulator for higher education providers that are exempt charities. 

Some charitable higher education providers are registered with the Charity Commission but most are exempt.

Legal obligations

All exempt charities must comply with the Charities Act 2011, unless specific requirements of the act explain that they do not apply to exempt charities.

Like all charities, exempt charities must deliver a charitable purpose for the public benefit. The law identifies different charitable purposes, one of which is 'the advancement of education'. 

They must also apply their assets and funds only for charitable purposes and not for personal or private benefit. This means an exempt charity must be able to show how the money it spends aligns with the purpose of, for example, advancing education. 

The provider's governing body is also the board of trustees of the charity, which means it has duties under charity law. These include:

• ensuring the charity is carrying out its purposes for the public benefit, and that its assets are applied solely for its charitable purposes
• complying with the charity’s governing document and the law
• acting in the charity’s best interests, including by managing conflicts of interest
• ensuring the charity is accountable
• managing the charity’s resources responsibly, including by managing risks and protecting its assets and people
• acting with reasonable care and skill.

The Charity Commission has published guidance for trustees. 

Where trustees have acted improperly the OfS may intervene to protect the interests of students.

Exempt charities must also submit information to the OfS that the OfS requires in its role as the principal regulator.

Unless it has 'charity' or 'charitable' in its name, a provider that is an exempt charity is also required under company law to state that it is a charity alongside its registered name. This covers all relevant descriptive documents and communications.