Transcript Document

REGULATION OF
CHARITIES IN NORTHERN
IRELAND
Seamus Murray
Head of Charities Implementation
Team
Department for Social Development
January 2009
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
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?
WHAT HAS CHANGED?






Greater public awareness
Greater sense of probity in the sector
Governance and accountability
Devolution & RPA
Crime prevention
Modernisation of legislation & housekeeping
Income £290 million
5,700 employees
Student’s Union
Income £291,000
Income £467 million
3,800 employees
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
CHARITIES SECTOR IN NI
What 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)
CHARITIES ACT (Northern Ireland) 2008
What 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
CHARITY COMMISSION FOR
NORTHERN IRELAND
CCNI
What is its role?
Public confidence objective
 Public benefit objective
 Compliance objective
 Charitable resources objective
 Accountability objective

Trust – Confidence - Awareness - Understanding - Effectiveness
STRUCTURE OF CCNI
Chief Commissioner
Deputy
Chief Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Chief Executive
Head of Registration
&
Compliance
Head of Investigation
&
Enforcement
Head of Finance
&
Administration
Commissioner (legal)
CHARITY ACCOUNTS
£100k to £500k
£100k or less
Are you a company and balance
sheet more than £2.8 m?
Yes
No
Does your constitution
Say you should produce
accrued accounts or
have your trustees decided
that you should?
Are you a company?
£500k or more
Yes
Prepare fully accrued
audited accounts as
per clause 65 (2)
No
Yes
Prepare fully accrued
accounts as
per clause 65 (3)
No
Prepare receipts & payments
accounts with statement
of assets & liabilities as per 64 (3)
Accounts signed off by
independent person
Accounts signed off by
independent examiner
Return made to Charity Commission for Northern Ireland
Accounts signed off by
auditor
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
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);
DESIGNATED RELIGIOUS
STATUS




Recognition of special circumstances
Sought after registration
Not automatic, must apply, discretion of CCNI
Conditions to be met






Does not remove reporting or accounting
Exemption clause 33-36





Advancement of religion principle purpose
Regular holding public worship principle activity
Established in N. Ireland least 5 years
Sound internal governance structures
Powers intervention
Suspension, removal & appointment
Interim manager
Direction to protect
Can be withdrawn
UK & IRELAND REGULATORS FORUM
How 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
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.
TIMETABLE
When 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
Does charities regulation matter and who
cares?





Charities
Public
Police
Politicians
Media
 You
CONTACTS
How to get in touch






Seamus Murray tel: 028 90829428
[email protected]
Roy Mc Givern tel: 028 90829404
[email protected]
Vera Mc Cann tel: 028 90829405
[email protected]
Kieran Doyle tel: 02890829427
[email protected]
www.dsdni.gov.uk
www.charitycommissionni.org