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Issue of the day: Charities
Party spokesmen debate policy on the voluntary sector.
Labour: Home Office minister Fiona Mactaggart
One of the main aims of the Charities Bill is to help new and existing charities to thrive and grow. We want charities to be key players in building a generous society: encouraging people to give their time and talents, as well as their money, so that local communities and people with common interests are better equipped to deal with their own problems and can help build a better society.
[T]he bill provides a clear definition of what 'charitable' means, laying out all the purposes that are, or ought to be, recognised as charitable. This includes, for the first time, specific mention of charitable purposes such as the advancement of human rights and the promotion of religious or racial harmony, or of equality and diversity.
'Public benefit' will remain as the most fundamental test of charitable purpose. It will be for the Charity Commission, as the independent regulator, to issue and consult on guidance that explains the law on public benefit, and to undertake a programme of public character checks once the bill is enacted to ensure that charities are providing a public benefit.
The bill will make life easier for charities. It will aim to streamline the administration of charities, so they can be more efficient and effective
Other practical measures are designed to make life more straightforward for charities. For example, a trustee could be paid for providing a trade or professional service to his or her charity. So if, for example, one of the trustees of a charity was a builder, the charity could now employ them to work on buildings it owns, something that was previously prohibited. Of course, this measure contains proper safeguards to ensure that it is not abused.
Charities are a powerful force for good in our society. The Charities Bill will help to preserve this capability. It will promote public confidence which is crucial to help charities of every kind to contribute to a better world and which will encourage people to be generous with their time, talents and money – all of which charities need to work well.
Conservatives: Home affairs spokesman Lord Hodgson
Conservatives believe passionately in the importance of the voluntary sector, and we wish to see it expand in importance and significance.
The sector's record of flexibility and innovation is a proud one and, at the same time, has provided an avenue for millions of our fellow citizens to 'put something back' into society.
Therefore, it is vital that the bill does not inhibit the sector's development and growth and at the same time provides a framework for the maintenance of the current high level of public confidence in the sector's probity.
The voluntary sector has long been pressing for this Bill and...[t]he Conservative Party welcomes it too, given that it promises a sound framework for the further development of voluntary and charitable work.
Liberal Democrats: Voluntary sector spokesman Bob Russell
The charitable sector must be run in a fair and efficient manner. We believe that charities relying on public donations should be given greater leniency.
Charities currently lose £400 million in VAT. The Liberal Democrats have called for this huge cost to be reviewed and reduced.
We believe it is vital we work hard to improve charitable finances. Currently, only one in three give tax-efficiently. We have pushed for new legislation to address and improve this situation.
All of the major political parties agree that the voluntary sector already plays an important role in the provision of a wide range of vital public services. That is why we have called for an updated political, legal and regulatory framework to ensure that the whole sector is equipped to take forward new roles and responsibilities, and that accurately reflects the reality of what it does and how it does it.
The above texts are edited versions of articles which first appeared in the Parliamentary Monitor magazine.
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