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Public benefit test moves towards the statute books in Scotland 16/11/04
 
The Charities and Trustee Investment (Scotland) Bill is introduced to the Scottish Parliament today.

Both the Scottish Council for Voluntary Organisations (SCVO) and the Office of the Scottish Charity Regulator (OSCR) have welcomed the publication, with SCVO saying the bill would “equip the voluntary sector with an image and brand which reflects its vital role in the 21st Century Scotland”.

The bill includes a new definition charity based on public benefit, guidance on applying the public benefit test, new fundraising regulation and enhanced powers for OSCR, which is given a statutory basis. It also establishes a register of charities that will be available to the public.

Communities Minister Malcolm Chisholm said: "This bill takes forward not only our commitment to reform charity law but also our on-going support for the voluntary sector.

“Scotland’s charities play an important role in life in Scotland, delivering important services which are supported by volunteers and donors.

“With such personal investment, the public rightly expect to be reassured that the ways in which our charities operate are effective, transparent and trustworthy. This Bill seeks to safeguard this.”

SCVO are still studying the bill, but a spokeman says they are confident many of their concerns have been met. In particular, the group had pushed for a definition of public benefit to be included in the bill.

The bill does not go quite this far, but having listed 13 new charitable purposes it makes it clear that no charity will have public benefit presumed. It also says the regulator must have “regard to” any benefit gained by members of the potential charity or people other than members of the public and any “disbenefit” incurred by the public, and weigh this against the benefit to the public. Furthermore, where benefit is provided to a section of the public only, “whether any condition on obtaining that benefit is unduly restrictive”.

Much of the controversy in the run up to the bill focused on the charitable status of independent schools. However, Judith Sischy, director of the Scottish Council of Independent Schools, today also welcomed the bill. “We’re relatively relaxed about it,” she said. “It doesn’t present any new challenges. Independent schools have always been focused on the public and community, they’ve just never had to prove it.”

The bill is available to download in pdf form at www.scottish.parliament.uk/business/bills/pdfs/b32s2.pdf

To view the document you will need Adobe Reader, free to download from here

 
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