LGB Alliance has retained its charity status after a tribunal rejected a legal challenge led by charities including trans youth charity Mermaids.

Mermaids had argued that LGB Alliance (LGBA) should not be recognised as a charity accusing it of being “focused on hostile anti-trans activism” and disputed its claim that it was set up to promote lesbian, gay and bisexual rights.

Following a seven-day hearing last year the tribunal has ruled this week that Mermaids does not have legal standing to appeal the Charity Commission’s decision to register LGB Alliance as a charity.

Mermaids points out that the tribunal’s ruling was against the legal standing of a challenge and did not “rule on the main issue in the appeal – namely whether or not LGBA should have been registered as a charity to begin with”.

It adds that the two judges involved “indicated that they had given that question careful consideration and had been split on the answer. That is, one of the judges agreed with us that LGBA should not have been registered as a charity, and one disagreed”.

Our statement on the ruling in Mermaids v Charity Commission and LGB Alliance.https://t.co/XYAUSFHZeJ

— Mermaids (@Mermaids_Gender) July 6, 2023

Its statement adds: “We don’t know the details of their reasoning, but we think that is a really significant outcome. Had we been found to have standing, there is a chance that the tie would have been resolved in our favour and we would have won the case.

“That puts a huge question mark over LGBA’s status. In addition, key points of our evidence about LGBA were accepted by both judges. They agreed with us that some of LGBA’s output on social media went beyond the boundaries of civilised debate, and they accepted our evidence that LGBA had progressed the “pro-LGB” activities it claims to be focused on “only to a limited extent”.

“They suggested that a combination of public scrutiny and oversight by the Charity Commission would “deter LGBA from crossing the line” in future.

“We are glad to have been able to shine a light on the harmful nature of LGBA’s activities and the need for ongoing scrutiny, and we are pleased that one of the judges accepted our evidence that LGBA should never have been registered as a charity. But we are disappointed that the Tribunal wasn’t able to go further.

“If we don’t meet the test for standing in this case, it is hard to imagine that anyone could have done. In effect, that means that the decision to register LGBA as a charity cannot be challenged by a third party, even though the judgment confirms that there are serious doubts over whether LGBA should have charitable status.”

Mermaids is now taking legal advice on whether to appeal the tribunal’s finding on legal standing.

LGB Alliance reacts

LGB Alliance has issued a statement saying it is “delighted” that the bid to remove its charitable status has failed. It added that the legal challenge's “cost to us and to our supporters has been huge”, saying its legal fees have amounted to more than £250,000.

“We can’t help but reflect on the fact that a sum like that would have been better spent on projects such as our Helpline for young people, our LGB Archive and our Friends’ Network," adds its statement.

We are delighted that the tribunal found in our favour and that Mermaids and the LGBT Consortium have failed in their bid to remove our charitable status. #LGBAllianceWin

See our statement here:https://t.co/FCWxxdz1B3 pic.twitter.com/KNNRQe6MzB

— LGB Alliance (@AllianceLGB) July 6, 2023

LGB Alliance chief executive Kate Barker said: “In a free society we must be free to disagree and we hold fiercely to that view.

“We are relieved that this long, and sometimes bruising, process has reached an end and we thank all of our wonderful supporters and our brilliant legal team."

Charity Commission role clarified

The Charity Commission has also welcomed the tribunal’s decision.

“As the judges confirm, it is not the Charity Commission’s role to regulate public debate on sensitive issues on which there are deeply held, sincere beliefs on all sides,” said a spokesperson.

“Our role is to apply the law, and we consider that we did so in registering LGB Alliance as a charity.

“All charities, ultimately, must deliver on their purposes for the public benefit. We understand both charities hold opposing views, but when engaging in public debate and campaigning, they should do so with respect and tolerance.

“Demonising and undermining those who think differently is not acceptable behaviour from any charity on our register.”

Legal expert reaction

Debra Burton, partner at law firm, Shakespeare Martineau, said: "This judgment has confirmed that it is not the role of the Charity Commission to determine whether the beliefs and views held by one particular charity are reasonable or not. T

"here are over 168,000 charities registered in the UK; many operating in different spheres and covering different charitable purposes and beliefs. If the appeal had been allowed then there was a real risk that the floodgates would be opened and it would lead to many applications by charities for removal of others that held conflicting views.

“Not only would this lead to significant discord in the charitable sphere which is usually well known for being a collaborative sector, but it would mean precious time and resources would be taken up by the Charity Commission in dealing with these applications, not to mention the significant costs that would be incurred. This is of course money which would be better spent furthering the charities overall objectives rather than going on legal fees.”

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