Concerns are growing over recommendations made by the European Commission for sector regulation.

Made on the basis that charitable and voluntary organisations have been exploited for the “financing of terrorism and criminal abuse”, the recommendations include a list of factors that would raise suspicions. These include: the sharing of office facilities; the use of multiple bank accounts and being on the board of more than one organisation.

Several national umbrella groups have expressed their horror that practices, which are common throughout the sector, risk being demonised, severely damaging trust and confidence.

A joint statement from The National Council for Voluntary Organisations, Scottish Council for Voluntary Organisations, Wales Council for Voluntary Action and the Northern Ireland Council for Voluntary Action, which jointly represent over 6,000 voluntary organisations, says: “This is the first time the Commission has attempted to regulate VCOs at the European level so it is extremely disappointing that the recommendations are based on suspicion of the sector and its alleged potential use for criminal activity.

“The focus on terrorism is particularly disproportionate; the mis-use of VCOs for this purpose has happened only on very rare occasion and have been effectively dealt with. Other sectors of the economy should also be treated to the same level of scrutiny. The voluntary and community sector should not be singled out.”

There are additional fears over the time period allocated for the consultation, which closes today. Only six weeks were allowed for responses, including the whole of August – the peak holiday period. The groups are calling for the Commission to establish a Compact and extend the consultation window for a further six weeks.

To view the text of the consultation document Draft Recommendations to Member States regarding a Code of Conduct for Non-Profit Organisation to Promote Transparency and Accountability Best Practices, click on the link below:
http://europa.eu.int/comm/justice_home/news/consulting_public/news_consulting_public_en.htm