Charities Bill

Voluntary sector bosses have welcomed the publication of the Charities Bill saying it gives the sector greater freedom.

Devolving greater powers to charities, the bill gives the Charity Commission a more clearly defined role.

Government Response: Home Office

Fiona Mactaggart Charities minister said:  "Charities can make a real difference to countless people's lives. Thousands of people benefit from charitable action. Many others donate money, volunteer their time and talents or work as a trustee. Charities are held in high regard.

"The Charities Bill builds on this foundation of confidence in the work of the sector, reforming charity law and regulation with an emphasis on public benefit and the significant regulatory role of the Charity Commission.

"The government is working with charities and voluntary organisations to promote strong, active and involved communities which are capable of taking responsible action on issues directly affecting them. Many voluntary organisations enjoy strong partnerships with government in achieving their aims, but the continued independence of the sector is something to be maintained and cherished."

Party Response: Conservative

Jacqui Lait shadow home affairs minister said: "We welcome the publication of the Charities Bill. The charitable and voluntary sector have campaigned long and hard for these measures and they will be reassured that the bill has finally begun its parliamentary progress.

"We are pleased that the government recognises the public benefit of charitable schools and hospitals, and that this Bill will be no threat to their continued existence.

"However, we will be scrutinising the legislation closely to see what changes have been made by the government following the report of the Joint Commons and Lords committee on the draft published earlier this year."

Stakeholder Response: Association for Charities

A spokesman for the Association for Charities said: "The Association for Charities warmly welcomes the Charities Bill published yesterday.

"For this association the arrival of the Bill represents the culmination of over five years' campaigning for a fairer system of regulation for charities, to prevent the kinds of abuse and damage to charities that have occurred over the past decade as a result of the unbridled statutory powers of the Charity Commission under the Charities Act 1993.

"The charity sector which does so much good work in our society and in the world deserves a law which is at last properly just and equitable towards charities and their 'beneficiaries, trustees, volunteers and donors', the human resources of charities whose interests this association was set up to represent. 

"Hence the institution of a new appeals mechanism - the Charity Appeal Tribunal - is by far and away the most important and significant element in the bill. It should be noted in this regard that if anything the commission's powers have been enhanced rather than modified, which makes it all the more vital to have an equally robust appeals mechanism which really works in practice.

"Not only will this provide charity appellants with a realistic and viable means of obtaining justice as an alternative to the High Court, but it will also serve as a means of testing out the new statutory definition of charity, public benefit, and establishing firm new parameters of charitable activity as well as regulation.   

"It is vital to ensure therefore, that this Tribunal stands the best possible chance of being effective according to clear terms of reference and powers laid down in law. At first glance it would appear that more work is needed on this tribunal section, as on Section 19 of the existing law, Receivers and Managers, which has been left untouched, yet this system is responsible for most of the notorious abuses on our case-file (see our 2004 report 'POWER WITHOUT ACCOUNTABILITY-THE CHARITY COMMISSION AS REGULATOR')*.

"We believe that if charities are damaged by the Charity Commission and donors' money wrongly expended on long-drawn-out and unnecessary Receiverships, or on dealing with commission investigations which subsequently establish innocence, it should be possible under the law to claim reimbursement of charity funds as well as court costs, should an appeal be upheld by the tribunal. 

"We continue to be concerned about the vulnerability of trustees under both existing law and the new bill and wish to see the institution of a Suitors' Fund to assist appeals to be taken to the High Court if necessary.

Stakeholder Response: Charity Commission

Andrew Hind, chief executive of the Charity Commission, said: "We warmly welcome the government's statement that the commission's independence is of paramount importance for the proper regulation of charities and for public confidence in charities.

"We welcome the increased flexibility for charities to evolve and grow. Charitable endeavour is at the heart of modern society.

"The bill provides a legal structure and support framework to enable charities to feel the pulse of the communities they serve and help individuals to achieve their aspirations.

"I am also delighted that the bill will provide a modern framework for us to work in partnership across traditional boundaries to increase effectiveness and grow public trust and confidence.

"Our new role in registering public collections will help this even further.

"This is the beginning of a new era for charitable action, one which releases potential and increases effectiveness.

"The bill gives a number of additional responsibilities and tasks to the commission, which we welcome. I believe we have a vital role to play in assisting charitable endeavour in society. However, it will be essential for the commission to be adequately funded in order to effectively carry out this important additional work."

Stakeholder Response: Disabilities Trust

A spokesman for the Disabilities Trust said: "The Disabilities Trust welcomes publication of the Charities Bill. It is important that having embarked on a wholesale reform of the law governing charities the government follows through with legislation.

"We're particularly glad the government has agreed to continue to accept a non-statutory definition of charity to be decided by case law through the courts.

"With charities taking a increasingly vital role in the provision of public services and playing an decisive role in empowering societies most marginalised groups of people, clearly defined regulation is obviously important to reassure the public and service users of their integrity and values.

"We know must hope that despite a packed legislative agenda, the government will find enough time to see the bill through before the next election."