New Voluntary New Voluntary StructuresStructures

Charities and Not for Profit Charities and Not for Profit OrganisationsOrganisations

Reasons for ChangeReasons for Change

Various reports looked at situationVarious reports looked at situation Department’s Consultation paperDepartment’s Consultation paper

Basis is essentially voluntaryBasis is essentially voluntary Large charities have voluntary trusteesLarge charities have voluntary trustees Most are entirely voluntaryMost are entirely voluntary Regulation could stifle the voluntary Regulation could stifle the voluntary

dynamicdynamic Reform should lead to balance between Reform should lead to balance between

accountability and supportaccountability and support

Reasons for ChangeReasons for Change

Department’s Consultation paperDepartment’s Consultation paper Integrated system of registration and Integrated system of registration and

regulation (including fundraising)regulation (including fundraising) Supervision and supportSupervision and support Focus on definitionFocus on definition

ModerniseModernise Protect against AbuseProtect against Abuse

Establish register -> TransparencyEstablish register -> Transparency

Reasons for ChangeReasons for Change

Department’s Consultation paperDepartment’s Consultation paper Regulatory frameworkRegulatory framework

Old Definition of a CharityOld Definition of a Charity

Based on Old English LawBased on Old English Law The Pemsel caseThe Pemsel case

Four Categories of PurposeFour Categories of Purpose Relief of povertyRelief of poverty Advancement of educationAdvancement of education Advancement of religionAdvancement of religion Other purposes beneficial to the Other purposes beneficial to the

communitycommunity

New Definition of a CharityNew Definition of a Charity

Based on:Based on: Old definitionOld definition Revenue precedentsRevenue precedents

Possible Categories of PurposePossible Categories of Purpose Advancement of healthAdvancement of health

Relief of sickness, disease and human Relief of sickness, disease and human sufferingsuffering

Advancement of education and Advancement of education and community welfarecommunity welfare

New Definition of a CharityNew Definition of a Charity

Possible Categories of PurposePossible Categories of Purpose Advancement of healthAdvancement of health

Relief of sickness, disease and human sufferingRelief of sickness, disease and human suffering Prevention and relief of povertyPrevention and relief of poverty

Includes distress and disadvantageIncludes distress and disadvantage Care support and protection of the youngCare support and protection of the young Care support and protection of the elderlyCare support and protection of the elderly Care support and protection of the disabledCare support and protection of the disabled

New Definition of a CharityNew Definition of a Charity

Possible Categories of PurposePossible Categories of Purpose Promotion of community developmentPromotion of community development Fostering of cultureFostering of culture Relief of suffering of animalsRelief of suffering of animals Advancement of natural environmentAdvancement of natural environment Advancement of Irish heritageAdvancement of Irish heritage Advancement of religionAdvancement of religion

New Definition of a CharityNew Definition of a Charity

Combine certainty with flexibilityCombine certainty with flexibility Public benefit is an essential element Public benefit is an essential element

in categoriesin categories

Regulatory BodyRegulatory Body

Common law countries tend to be Common law countries tend to be Revenue regulatedRevenue regulated Ireland, Australia, Canada, New ZealandIreland, Australia, Canada, New Zealand Scotland, Northern IrelandScotland, Northern Ireland

Legislation is only interested in tax Legislation is only interested in tax exemptions.exemptions.

Reform underway in all these Reform underway in all these countriescountries

Regulatory BodyRegulatory Body

England & Wales the exceptionEngland & Wales the exception Charities Commission set up over 40 yearsCharities Commission set up over 40 years Independent Statutory BodyIndependent Statutory Body Second generation reform now under waySecond generation reform now under way

Ireland –Too many agenciesIreland –Too many agencies Attorney General (Protector of charities)Attorney General (Protector of charities) RevenueRevenue Commissioners for charitable donations Commissioners for charitable donations

and bequests for Ireland.and bequests for Ireland.

Regulatory BodyRegulatory Body

Ireland –Too many agenciesIreland –Too many agencies Garda SíochánaGarda Síochána ODCEODCE Valuation OfficeValuation Office Probate OfficeProbate Office

Regulatory BodyRegulatory Body

Problems with multiple agenciesProblems with multiple agencies No one has the specific aim of No one has the specific aim of

supervising and regulatingsupervising and regulating No complete register of charitiesNo complete register of charities Non corporate charities are accountable Non corporate charities are accountable

to no-oneto no-one Fund-raisers are not regulated at allFund-raisers are not regulated at all

Regulatory BodyRegulatory Body

New body Two choicesNew body Two choices Give powers to existing bodyGive powers to existing body Establish brand new bodyEstablish brand new body

Functions of a new bodyFunctions of a new body Determining charitable status (HC Appeal)Determining charitable status (HC Appeal) Maintaining registerMaintaining register Ensuring public accountabilityEnsuring public accountability Regulating & monitoring (incl fundraising)Regulating & monitoring (incl fundraising)

Regulatory BodyRegulatory Body

Functions of a new bodyFunctions of a new body Guidance to trustees and directorsGuidance to trustees and directors Protect public interestProtect public interest Advise the MinisterAdvise the Minister Determining Cy-Pres applicationsDetermining Cy-Pres applications Code of conduct, Best practice Code of conduct, Best practice

guidelinesguidelines Notifications of bequestsNotifications of bequests Performance reportsPerformance reports

FundraisingFundraising

Must have Public ConfidenceMust have Public Confidence Requires transparency about methods of Requires transparency about methods of

fundraisingfundraising Requires transparency about application Requires transparency about application

of funds raisedof funds raised Must balance charity’s freedom to be Must balance charity’s freedom to be

dynamic with public expectation of dynamic with public expectation of fund usage.fund usage.

FundraisingFundraising

At presentAt present No permit requirement for street trading…No permit requirement for street trading… ……or collecting promises of moneyor collecting promises of money Professional fundraisers cause suspicionProfessional fundraisers cause suspicion

In FutureIn Future Must get permit and disclose permits soughtMust get permit and disclose permits sought Must disclose amounts raised under those Must disclose amounts raised under those

permitspermits Administrative rules for fundraisingAdministrative rules for fundraising Investigate reported abusesInvestigate reported abuses Liase with GardaíLiase with Gardaí

FundraisingFundraising

In FutureIn Future Liaise with Local AuthoritiesLiaise with Local Authorities Encourage self-regulationEncourage self-regulation

The RegisterThe Register

At PresentAt Present Revenue have a list of those who have the Revenue have a list of those who have the

charitable exemption.charitable exemption. Corporate charities file annual returns in CROCorporate charities file annual returns in CRO No-one to complain toNo-one to complain to

In FutureIn Future Compile, publish and maintain a registerCompile, publish and maintain a register Annual returns requiredAnnual returns required CRO returns acceptable or vice versaCRO returns acceptable or vice versa Available on the netAvailable on the net

The RegisterThe Register

In FutureIn Future Info to be provided depends on size, land Info to be provided depends on size, land

ownership etcownership etc Details requiredDetails required

Name and contactsName and contacts Current trustees or board of directorsCurrent trustees or board of directors Aims & objectivesAims & objectives Ancillary activitiesAncillary activities Annual return statusAnnual return status

Promotes transparencyPromotes transparency

Statutory PowersStatutory Powers

To ensure complianceTo ensure compliance Allow strike-offAllow strike-off Allow prosecutionAllow prosecution Apply to DPP for indictable offencesApply to DPP for indictable offences PublicityPublicity FinesFines

Protect the Public InterestProtect the Public Interest Sanction must be appropriateSanction must be appropriate

Trustees / DirectorsTrustees / Directors

Duty of care and responsibilities the same Duty of care and responsibilities the same no matter how organisation is structured.no matter how organisation is structured.

Default administrative powersDefault administrative powers Statutory exoneration for honesty and Statutory exoneration for honesty and

good faithgood faith Clear outlines for trustees and staffClear outlines for trustees and staff Standards depend on structure at presentStandards depend on structure at present New Structure required for CharitiesNew Structure required for Charities

Structure & LawStructure & Law

Company Law Review GroupCompany Law Review Group New VehicleNew Vehicle DAC - Designated Activity CompanyDAC - Designated Activity Company Clearly identified objectsClearly identified objects CDAC – especially for charitiesCDAC – especially for charities Existing charities can convertExisting charities can convert

Structure & LawStructure & Law

Present Law of charitiesPresent Law of charities Charities Act 1961 & 1973Charities Act 1961 & 1973 Amendments over the years Amendments over the years Social Welfare (MP) Act 2002Social Welfare (MP) Act 2002

Present Law of fundraisingPresent Law of fundraising Street and House to House collection Act Street and House to House collection Act

19621962 Casual Trading Act 1995Casual Trading Act 1995

New Law to combine all theseNew Law to combine all these A complete replacementA complete replacement

MiscellaneousMiscellaneous

No Change for existing charitiesNo Change for existing charities Register once onlyRegister once only No new legal personality as a result of No new legal personality as a result of

registration i.e. Structure stays the sameregistration i.e. Structure stays the same No decision as to how regulatory body will No decision as to how regulatory body will

be fundedbe funded No Start dateNo Start date On line ServiceOn line Service Consultation Paper on CDConsultation Paper on CD