Bermuda's New Charities Act 2014 Operative This Month

Bermuda's new Charities Act 2014 (the Act) becomes operative on 31 December 2014. The Act repeals and replaces the Charities Act 1978 with substantial amendment and complements Bermuda's sensible, well-regarded legislative framework for the establishment of charities. The Act reinforces Bermuda as a preferential and user-friendly jurisdiction for the creation and management of international charitable and philanthropic structures.

Based largely on the Charities Act 2011 of the UK, the Act clarifies what is meant by charity, gives the Registrar and Charity Commissioners increased regulatory authority, and strengthens reporting requirements for registered charities.

Registration of a charitable structure is optional in Bermuda if funds are not solicited or received from the public in Bermuda and if it falls within one of the anti-money laundering regimes, providing flexibility to international structures.