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Making charity mandatory

New rules could have radical implications for the way foundations manage their money

Charity is, by definition, voluntary. But new rules being considered by the UK government may force charities, family trusts and foundations to stump up a minimum set annual payout for charitable causes, a move that would shake up how their assets are managed.

In a Green Paper on giving, published by the UK Cabinet Office in December last year, the government announced it would look into the suggestion that "foundations should make a minimum payout annually, as is the case in some countries". There are currently no annual payout rulings for foundations registered in the UK.

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