Charities Bill Briefing July07

The Wheel, 10 Grattan Crescent, Inchicore, Dublin 8. www.wheel.ie [email protected]

The Charities Bill 2007

information and consultation

2007



Some Clarifications

•what organisations will the Act apply to?

•difference between charities and other community and voluntary organisations

•not law yet! Not enacted legislation – only a Bill!

•trustees and directors – persons who control an organisation

•the legislative process: when?

•we are all wearing our “charity” hats today

•what is best for our organisations?



the Charities Bill will provide for:

• a charity regulator

• a register of charities - all charities operating in the state must register

• a definition of charitable purposes

•annual activity/financial reporting by charities

•a new law on fund-raising - to regulate non-cash collections

•clear duties attaching to trustees and employees of charities (whistleblowing)



•establishment of a charity appeals tribunal

•establishment of consultative panels

•powers of investigation

•fines for non-compliance



how will the system work ?

• must register if you want to refer to yourself as a charity or fundraise for a charity


registering

• two-stage test– exist for a charitable purpose

and

– provide a public benefit• must not be an excluded body

– trade union, chamber of commerce…– OR– “a body, the primary purpose of which is to

promote a political party, candidate or cause”


charitable purposes

• prevention of poverty• advancement of education• advancement of religion• other purposes beneficial to community

– community welfare, community development, civic responsibility, voluntary work, conflict resolution, religious or racial harmony, protection of natural environment, suffering of animals, arts, culture, heritage, sciences

– No mention of promotion of human rights, social inclusion (these WERE included in the General Scheme)


information needed to register

• a constitution• names and details of trustees• fundraising plans• activity plans re charitable purposes• information on risk assessment activity • financial accounts for last three years and

bank details

• Register will be open to the public


apart from operating the register, what else will the regulator do?

• purpose: to increase public trust and confidence in the administration and management of charities– Should it not really be “to protect the public

interest in charities”• To promote/monitor compliance with act• To promote the effective use of the property of

charities• To ensure the accountability of charities to

donors, beneficiaries and the public• To encourage and facilitate the better

administration of charities…


what will happen when registered?

• submit annual returns– annual report– audited accounts OR examined accounts if income less

that €100k per year

• regulation of fundraising activity: • new laws to define and deal with “non-cash

collections”– three elements to proposed system

• permits from Gardai• registration with regulator• adherence to Codes of Good Practice on operational

aspects• www.ictr.ie


duties of trustees

– Bill places a duty on trustees to ensure they (and their colleague trustees) are qualified to act as a trustee (no duty on regulator)

• no bankrupts, no people making composition with creditors, no companies being wound-up….

• regulator will keep a list of people who were trustees but who have been disqualified

• duty on other trustees and managers/people with responsibility to ensure they are not “acting under the direction of a disqualified person”

• protection for whistleblowers


other issues / omissions• no general duty-of-care that would apply to Trustees• no power to exonerate a charity trustee from personal

liability• no provision of a legal structure for charities• no provision of default administrative powers for charities• no provision to permit the remuneration of Trustees for doing work

that is NOT related to performing their role as Trustees

• Bill must– protect the identity and independence of charities– minimise dual reporting for charities that are companies– be accompanied by sufficient and appropriate resources to

enable the sector to not just cope, but thrive, in a regulated environment

Lots more at www.wheel.ieContact ivan at [email protected]

Charities Bill Briefing July07

Documents

Transcript of Charities Bill Briefing July07