1. New Voluntary Structures Charities and Not for Profit Organisations

2. Reasons for Change • Various reports looked at situation • Department’s Consultation paper • Basis is essentially voluntary • Large charities have voluntary trustees • Most are entirely voluntary • Regulation could stifle the voluntary dynamic • Reform should lead to balance between accountability and support

3. Reasons for Change • Department’s Consultation paper • Integrated system of registration and regulation (including fundraising) • Supervision and support • Focus on definition • Modernise • Protect against Abuse • Establish register -> Transparency

4. Reasons for Change • Department’s Consultation paper • Regulatory framework

5. Old Definition of a Charity • Based on Old English Law • The Pemsel case • Four Categories of Purpose • Relief of poverty • Advancement of education • Advancement of religion • Other purposes beneficial to the community

6. New Definition of a Charity • Based on: • Old definition • Revenue precedents • Possible Categories of Purpose • Advancement of health • Relief of sickness, disease and human suffering • Advancement of education and community welfare

7. New Definition of a Charity • Possible Categories of Purpose • Advancement of health • Relief of sickness, disease and human suffering • Prevention and relief of poverty • Includes distress and disadvantage • Care support and protection of the young • Care support and protection of the elderly • Care support and protection of the disabled

8. New Definition of a Charity • Possible Categories of Purpose • Promotion of community development • Fostering of culture • Relief of suffering of animals • Advancement of natural environment • Advancement of Irish heritage • Advancement of religion

9. New Definition of a Charity • Combine certainty with flexibility • Public benefit is an essential element in categories

10. Regulatory Body • Common law countries tend to be Revenue regulated • Ireland, Australia, Canada, New Zealand • Scotland, Northern Ireland • Legislation is only interested in tax exemptions. • Reform underway in all these countries

11. Regulatory Body • England & Wales the exception • Charities Commission set up over 40 years • Independent Statutory Body • Second generation reform now under way • Ireland –Too many agencies • Attorney General (Protector of charities) • Revenue • Commissioners for charitable donations and bequests for Ireland.

12. Regulatory Body • Ireland –Too many agencies • Garda Síochána • ODCE • Valuation Office • Probate Office

13. Regulatory Body • Problems with multiple agencies • No one has the specific aim of supervising and regulating • No complete register of charities • Non corporate charities are accountable to no-one • Fund-raisers are not regulated at all

14. Regulatory Body • New body Two choices • Give powers to existing body • Establish brand new body • Functions of a new body • Determining charitable status (HC Appeal) • Maintaining register • Ensuring public accountability • Regulating & monitoring (incl fundraising)

15. Regulatory Body • Functions of a new body • Guidance to trustees and directors • Protect public interest • Advise the Minister • Determining Cy-Pres applications • Code of conduct, Best practice guidelines • Notifications of bequests • Performance reports

16. Fundraising • Must have Public Confidence • Requires transparency about methods of fundraising • Requires transparency about application of funds raised • Must balance charity’s freedom to be dynamic with public expectation of fund usage.

17. Fundraising • At present • No permit requirement for street trading… • …or collecting promises of money • Professional fundraisers cause suspicion • In Future • Must get permit and disclose permits sought • Must disclose amounts raised under those permits • Administrative rules for fundraising • Investigate reported abuses • Liase with Gardaí

18. Fundraising • In Future • Liaise with Local Authorities • Encourage self-regulation

19. The Register • At Present • Revenue have a list of those who have the charitable exemption. • Corporate charities file annual returns in CRO • No-one to complain to • In Future • Compile, publish and maintain a register • Annual returns required • CRO returns acceptable or vice versa • Available on the net

20. The Register • In Future • Info to be provided depends on size, land ownership etc • Details required • Name and contacts • Current trustees or board of directors • Aims & objectives • Ancillary activities • Annual return status • Promotes transparency

21. Statutory Powers • To ensure compliance • Allow strike-off • Allow prosecution • Apply to DPP for indictable offences • Publicity • Fines • Protect the Public Interest • Sanction must be appropriate

22. Trustees / Directors • Duty of care and responsibilities the same no matter how organisation is structured. • Default administrative powers • Statutory exoneration for honesty and good faith • Clear outlines for trustees and staff • Standards depend on structure at present • New Structure required for Charities

23. Structure & Law • Company Law Review Group • New Vehicle • DAC - Designated Activity Company • Clearly identified objects • CDAC – especially for charities • Existing charities can convert

24. Structure & Law • Present Law of charities • Charities Act 1961 & 1973 • Amendments over the years • Social Welfare (MP) Act 2002 • Present Law of fundraising • Street and House to House collection Act 1962 • Casual Trading Act 1995 • New Law to combine all these • A complete replacement

25. Miscellaneous • No Change for existing charities • Register once only • No new legal personality as a result of registration i.e. Structure stays the same • No decision as to how regulatory body will be funded • No Start date • On line Service • Consultation Paper on CD