REGULATION OF CHARITIES IN NORTHERN IRELAND

1. REGULATION OF CHARITIES IN NORTHERN IRELAND Seamus Murray Head of Charities Implementation Team Department for Social Development January 2009

2. FACT OR FICTION ‘Law could mute carol singers’ ‘Watchdogs should look at charities’ ‘Jury still out on charity watchdog’ ‘Police may investigate children's charity’ ‘Ulster charities ‘used to launder paramilitary cash’’ ‘Businesses warned on charity scam’ ‘Warning on bogus charity clothing collections’ ‘Council backs call for charity commission’ Sources: Belfast Telegraph, Newsletter, Third Sector

3. FOCUS • Why do we need regulation? • What has changed in the world? • Who is regulation for? • What is regulation? • What is happening in Northern Ireland & elsewhere?

4. WHAT HAS CHANGED? • Greater public awareness • Greater sense of probity in the sector • Governance and accountability • Devolution & RPA • Crime prevention • Modernisation of legislation & housekeeping

5. Income £467 million 3,800 employees Income £290 million 5,700 employees Student’s Union Income £291,000 Queen’s Students Union Income £2.6 million Scottish Junior Chess Association Educational Trust Income £1,000 European Society of Regional Anaesthesia and Pain Therapy Income £924,00 Income £1,744

6. CHARITIES SECTOR IN NIWhat does it look like? • Relatively large voluntary and community sector compared to England, Scotland and Wales. • Number of charities 5500-6500-9000? • Total annual income approx. £657m • Total expenditure £640m • Total assets £750m • Total workforce 29,168 (State of the Sector III 2002 NICVA)

7. CHARITIES ACT (Northern Ireland) 2008What will it do ? • Charities Commission for Northern Ireland • 12 headings plus 2 NI definitions • Charity Test • Fully inclusive compulsory charities register • 167 Charities • All charities to make annual returns financial and performance • New regulation of Public Charitable Collections • Charitable Incorporated Organisation • Trustee indemnity insurance • Deregulation • Charity Tribunal

8. CHARITY COMMISSION FOR NORTHERN IRELAND CCNIWhat is its role? • Public confidence objective • Public benefit objective • Compliance objective • Charitable resources objective • Accountability objective Trust – Confidence - Awareness - Understanding - Effectiveness

9. STRUCTURE OF CCNI

10. CHARITY ACCOUNTS £100k or less £100k to £500k £500k or more Yes Prepare fully accrued audited accounts as per clause 65 (2) Yes Are you a company? Are you a company and balance sheet more than £2.8 m? No No Does your constitution Say you should produce accrued accounts or have your trustees decided that you should? Prepare fully accrued accounts as per clause 65 (3) Yes No Prepare receipts & payments accounts with statement of assets & liabilities as per 64 (3) Accounts signed off by auditor Accounts signed off by independent person Accounts signed off by independent examiner Return made to Charity Commission for Northern Ireland

11. PUBLIC BENEFIT • Established for charitable purposes ONLY • Fall within one of 12 headings AND • Is for the public benefit • Not party political • No presumption of public benefit • Public benefit test • Benefit gained or likely to be gained by members • Detriment incurred or likely to be incurred compared with the benefit gained or likely to be gained • Whether any condition, charge or fee is unduly restrictive • CCNI must issue guidance • Public consultation

12. RELIGION AS A CHARITABLE PURPOSE • CLAUSE 2. (2) (C) The advancement of religion • CLAUSE 2. (3) In subsection (2)--- (a) in paragraph (c) “religion” includes--- (i) a religion which involves belief in one god or more than one god, and (ii) any analogous philosophical belief (whether or not involving belief in a god);

13. DESIGNATED RELIGIOUS STATUS • Recognition of special circumstances • Sought after registration • Not automatic, must apply, discretion of CCNI • Conditions to be met • Advancement of religion principle purpose • Regular holding public worship principle activity • Established in N. Ireland least 5 years • Sound internal governance structures • Does not remove reporting or accounting • Exemption clause 33-36 • Powers intervention • Suspension, removal & appointment • Interim manager • Direction to protect • Can be withdrawn

14. UK & IRELAND REGULATORS FORUMHow do we seek consistency in approach? • Established October 2006 • Membership – CC / OSCR / DSD / Dept. of Community Rural and Gaeltacht Affairs (ROI) • Forum for discussion on charity matters between jurisdictions • Address issues of consistency & interpretation • Black bag collections

15. CROSS BORDER & ALL ISLAND CHARITIES • Cross Bordering Monitoring Group established to consider issues. • Need to minimise over administration & reporting. • Agree joint monitoring arrangements. • Ensure reporting of activities in each jurisdiction. • Ministerial meeting to consider all-Ireland charities.

16. TIMETABLEWhen is this all going to happen? • Sep 08 Royal Assent • Mar 09 Appointment of Commissioners • Apr 09 Commencement regulations • Apr 09 Commission established • May 09 Consultation on public benefit • Apr 10 First new registrations • Oct 10 Charitable Incorporated Organisations • Jan 11 Public collections • Apr 11 First financial returns and reports

17. Does charities regulation matter and who cares? • Charities • Public • Police • Politicians • Media • You

18. CONTACTSHow to get in touch • Seamus Murray tel: 028 90829428 seamus.murray@dsdni.gov.uk • Roy Mc Givern tel: 028 90829404 roy.mcgivern@dsdni.gov.uk • Vera Mc Cann tel: 028 90829405 vera.mccann@dsdni.gov.uk • Kieran Doyle tel: 02890829427 kieran.doyle@dsdni.gov.uk • www.dsdni.gov.uk • www.charitycommissionni.org