Charities: updated guidance on when and how your charity can make an ex gratia payment

Changes to the law on ex gratia payments

The law relating to the making of ex gratia payments by charities was reformed with effect from 27 November 2025. 

We recently updated our guidance note and information page on ex gratia payments made by a charity to take account of these changes in the law. 

Why are these documents relevant to your charity?

Before you consider whether your charity might make an “ex gratia” payment to any person or organisation in any particular case, you will first need to ensure that it will be lawful for the charity to do so, and, if so, how it may do so. 

The guidance note explains what an ex gratia payment is in law, and whether and how you can make such a payment. 

It also explains how the November 2025 changes in the law have reformed the law on ex gratia payments to reduce the extent to which such payments are subject to legal regulation. Notably the changes made some exceptions to the blanket requirement to involve the Charity Commission in making an ex gratia payment. The information page also explains the changes made in November 2025. 

Steps you should take before considering making any ex gratia payment

We recommend that you read the Guidance Note before you plan or agree to make any such payment. Not only will this save you time; it will also ensure that you do not inadvertently act in breach of charity law. You might also find it helpful to read the information page.

Updated items 

Guidance Note: Ex Gratia Payments by a Charity

Information page on ex gratia payments