The NCVO has produced a report detailing the potential impacts of a no-deal Brexit on charities. It examines different areas ranging from the economic impact to issues around employment.
Charities rely on a healthy economy to operate successfully. A weak economy would put further strain on already limited resources, potentially impacting income streams or funding. And while the government has agreed to underwrite costs for projects supported by EU funding up to the end of 2020, after that the future is unclear.
After Brexit, it may no longer be possible for UK volunteers to participate in EU-funded programmes. There is also a great deal of uncertainty as to what will happen to EU citizens volunteering in the UK in a no-deal scenario. They will lose their automatic right to travel, live and volunteer in the UK and there is no assurance that unpaid volunteers will even be able to remain in the UK.
In the event of a no-deal Brexit, EU state aid rules will be transposed into UK domestic legislation. The government will create a UK-wide subsidy control framework to ensure the continuing control of anti-competitive subsidies. The Competition and Markets Authority will also take on the role of enforcement and supervision.
Product, environmental and data standards
Much of the existing EU regulations on products, environment and data will be transferred into UK law. However, charities will still need to ensure that any products brought into the UK, conform to the new UKCA mark and that they can legally process personal data from the EU or EEA after Brexit. This could include a donor or volunteer’s name, addresses or HR data such as staff information and payroll details.
Political fallout of Brexit
Deal or no-deal, Brexit and its implications will continue to dominate political discussion for the foreseeable future. Charities also need to consider what activities they might plan during a general election campaign and which issues they would like to see on the agenda.