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Joint Committee publishes report on Draft Charities Bill 30/09/04
 
The Joint Committee on the Draft Charities Bill has published its report, within which it expresses its support for the reform and modernisation of charity law.

The report says the committee recognises the diversity of the sector and is keen to ensure that the regulation does not over-burden smaller charities. While it largely welcomed the bill however, within the report’s 52 recommendations the Joint Committee also conveyed several concerns:

  • The basic principles for a definition of public benefit should be those set out in the recent concordant between the Home Office and the Charity Commission earlier this month
  • The bill should include a provision obliging the Charity Commission to use its powers fairly, proportionately and reasonably
  • Within fundraising and public collections, while local authorities should retain powers of enforcement, the Charity Commission, rather than the local authorities should be the lead authority for granting certificates of fitness to carry out public collections
  • Charities should be allowed to trade within the charity and enjoy tax exemption on trading income up to the point where income from trading equals 25% (or £5,000 if the greater) of the charity’s total turnover
  • The definition of religion should be clarified to include non-deity and multi-deity groups
  • An additional charitable purpose should be added for “the provision of religious harmony, racial harmony and equality and diversity”

George Foulkes MP, acting chairman of the Joint Committee, said: “We strongly believe that charitable endeavour continues to be the cornerstone of a caring society comprised of active citizens. Charities are valued as organisations independent of Government. We would like to see charities playing an even bigger role and believe that many have the potential to contribute to the modernisation of public services and the enhancement of civic responsibility. Our assessment of the bill and the recommendations we make are based on a desire to see charities – and charitable endeavour and income grow, not diminish, in our country.”

Charities Minister, Fiona Mactaggart, said that she was pleased that the Committee had backed the bill’s proposals. “There is widespread support for the principle that public benefit should be the bedrock of charitable status, regulated by a strengthened, independent Charity Commission,” she said.

“I am very confident that we are on the right track to produce legislation that will benefit charities, will enable them to play an even bigger role as a force for good in society, and will encourage people to give their time, talents and money to charities.”

These sentiments are echoed by the NCVO, which described the report as a demonstration of the “integrity and rigour” of the Committee, which had placed the issue of public benefit at the centre of legislation and had “pulled no punches over the need for existing charities to show what public benefit they provide”.

And despite having been criticised at times throughout the scrutiny process, the Charity Commission also welcomed the report. “We are delighted to see the Committee’s focus on maintaining the independence of the sector and encouraging active citizenship,” said its chair, Geraldine Peacock. “We welcome the report’s affirmation of the crucial importance of an independent Commission as an essential element in this.

“We also welcome the Committee’s desire to ensure the meaning of public benefit is clear. Now is an exciting time for the sector and we look forward to working with the sector and with Government towards the successful introduction and passage through Parliament to the Charities Bill.”

Fundraising
The Institute of Fundraising (IoF) and the Public Fundraising Regulatory Authority (PFRA) also said they were encouraged by the recommendations. The PFRA was especially pleased with the suggestion that the Charity Commission, rather than local authorities, should act as the “lead authority” for granting certificates of fitness to carry out public collections, “as this will minimise the burden on both charities and local authorities”.

However, the IoF said that although in principle it agreed with this recommendation the Joint Committee “doe not comment on whether philanthropic ad benevolent organisations would also apply for certificates of fitness from the regulator” and that this was one of several details “to be ironed out”.

Andrew Watt, head of policy at the IoF, said: “There is still time for the sector to engage with Government to ensure a productive outcome when the Bill becomes law. We urge Government to honour the work of the voluntary and community sector by ensuring this bill becomes law next year. We welcome the Government’s commitment in bringing this Bill forward so far.”

The full report will be due online from 4pm today via
http://www.parliament.uk/parliamentary_committees/jcdchb/jcdchb_reports_and_publications.cfm

 
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