The Charity Commission has told the government that terrorist involvement with charities is extremely rare, and its response to the problem should be proportionate to the scale of the threat.

In its response to a Home Office consultation on the issue, the regulator said it should be considered a trusted partner to both the government and the sector in protecting charities from terrorist abuse. It claimed it would act “swiftly and decisively” where any criminality or abuse, including terrorist involvement, takes place.

The response comes just months after the regulator set up its own dedicated faith unit. The Commission admitted that the unit’s primary role was to prevent religious extremism within the third sector and the misuse of charity funds (Charity Times, April-May 2007).

“We must safeguard charities from the risk of terrorist abuse without damaging their ability to carry out their vital work,” said Commission chief executive Andrew Hind. “Our response to the government’s review puts robust governance at the heart of our strategy, whilst being absolutely clear we will not tolerate the exploitation of charities for terrorist abuse.”

Meanwhile BOND, a UK network of international development organisations, used the consultation to call on government to retain the Charity Commission’s independence. In turn, it asked the regulator to listen careful to the third sector.

“Overseas development charities need to reassure the public that our funds are not abused,” said Martin Hearson, BOND’s senior advocacy officer. “We are working hard to identify and develop best practice, and will welcome clarified guidance from the Charity Commission on our legal obligations. Extra regulation or ‘gold plating’ would be unnecessary and damaging to the important work that charities do round the world. The Commission has to tread a delicate line on terrorism.”

BOND told the regulator it should undertake a full Compact-compliant consultation on its proposed anti-terrorism strategy.