charities law and regulation: a consultation
DESCRIPTION
Charities law and regulation: a consultation. July 2013. Background. Definition: 1961 Income Tax Law drawn from 1601 Statute of Elizabeth: excludes major areas of bona fide charitable activity public benefit not a requirement purpose can be charitable but not activities Regulation - PowerPoint PPT PresentationTRANSCRIPT
Charities law and regulation:
a consultation
July 2013
Background
Definition: 1961 Income Tax Law drawn from 1601 Statute of Elizabeth:•excludes major areas of bona fide charitable activity•public benefit not a requirement purpose can be charitable but not activities
Regulation•no regulatory body to oversee establishment and activities of charities (although do operate regulated financial services environment)
2 core issues to address
Modern definition:
Charities can more
readily identify
themselves and their
intents and purposes
Proportionate regulation: Protect public trust and confidence
Trusts Law working group 2004 & 09 Law Commission; 2008 SoJ; VCS
Public want:
•charities to be held to account for how they spend their money
•information to be in the public domain so it can be interrogated.
(research does not distinguish between public & private charity)
Public charities have a “covenant of trust” essential to:
•raising funds from the public
•reaching stakeholders who participate in activities and service provision
•influencing public opinion and creating positive social and behavioural change
Trust and confidence enhanced by definition & regulation
2 phases
Definition
Commissioner
Public Register
phase one
Compact
ESV
Regulation
phase twoGuidance; public benefit
Capture information
Timeframe
Definition
Charities testA body is a charity if: •it only delivers charitable purposes and;•it provides public benefit in Jersey or elsewhere
And•it is on the charities register.
Some existing “charities” may fail the charities test
Charitable purposes
Citizenship/Community
development
education
Arts, heritage, culture, science
healthHuman rights,
conflict resolution,
reconciliation
…plus other analogous purposes
Public participation
in sport Recreational facilities to improve life
Religious or racial
harmony
poverty religionSaving lives
Environmental protection or improvement
Equality and diversity
Relief for those in need (age; health;
disability; financial hardship;
other)
animal welfare
Public benefit
• any benefit gained by members of that body or others, other than as members of the public
• any disbenefit to the public
• where benefit is restricted to a section of the public, whether conditions associated with gaining benefit is restrictive
Consideration will be given to:
Individual organisations, not types of organisationsPublic opinion considered but not arbiter
Register
Description of aims and objectives
Name & address of charity
Name of trustees (exceptions: private family
trusts/safeguarding?)
Establishing document & Accounts
Phase 2
Right to call yourself a
charity
Impact on non-registered
private charities?
Accrue tax benefits
Charities number
Information in the public domain Benefits
Establishing documents & accounts
Registration form:-Charitable purpose and public benefit declaration-Fit & proper persons declaration
Information provided to Commissioner
Public charities?Private charities?
Who?
Trustees/committee or board members
Must act in the interest of the charity inc:•ensure the charity acts in a manner consistent with its purpose•cannot be remunerated•can be disqualified if convicted of an offence involving dishonesty; bankrupt or removed as a trustee by the England or Scottish Charities Commission•No single trustees or family only trustees
“Fit and proper” persons declaration.
Charities Commissioner
Independent of the States or any other organisation
Phase 1
• set up a Public Register
• issue guidance: public benefit
• determine which organisations pass the charities test
• Issue Jersey Charities number
• investigate & remove charities from Register
Charities Commissioner cont..
Phase 2•issue guidance on regulatory standards •hold charities to account for compliance with standards
•investigate & remove from Register if not meeting regulatory standards
Appeals
Stage 1 Appeal Panel (Representatives of Jersey Voluntary and Community Partnership; 2 x lay members)
Stage 2 Independent review by qualified expert (possibly UK or Scottish Charities Commissioner)
Stage 3Royal Court Appeal
Phase 2: What regulation might look like?It must be proportionate and relate to organisations that receive public monies (donation or charity tax exemptions).
It might include:•submission of annual accounts •standards to which those accounts must adhere•reserves policy•standards around governance
regulation and independent recognition can have fundraising and volunteering as
well as safeguard against potential abuses of charitable status
Support
• One stop shop registration with not-for-profit and income tax• Pro-actively contact organisations on the Taxes Office
“charities list” and help thorough the registration process• transfer period during which organisations on the Taxes
Office “charities list” can continue to receive tax exemptions prior to registration
• Lead in time from adoption of Law to registration and from registration to regulation allows for development of user friendly guidance
Questions