Charity Law Reform

Latest news – Establishment of Register of Charities delayed

18 June 2010

The Charity Commission has identified a potential technical hitch with some of the wording in the Charities Act and has asked the Department for Social Development to investigate.  This means that the registration process of charities will not commence at the end of June as planned.  It is more likely to be the autumn, or potentially next year, before registrations are taken as any necessary amendments would have to be laid before the Assembly.   See the Charity Commission’s website for more information.   Download NICVA's updated briefing paper at the bottom of this page.

Register of Charities timescale announced

The Charity Commission has announced that the Register of Charities for Northern Ireland will be operational by the end of June.  The Revenue has handed over its list of charities, which are registered for tax purposes, to the Commission.  This list, which hopefully will be made available on the Commission’s website, is NOT the Register of Charities – it is only the Organisations that have previously been known as charities list.

The Commission will write to all charities in the near future explaining what they will have to do to register, so there is no need to contact the Commission. The Charity Commission also anticipates that it will issue the public benefit test guidance in early June as charities will have to demonstrate, as part of the registration process, how they meet the public benefit test requirement.

Once the official Register of Charities is up and running every new charity and those currently deemed charities will be required to register with the Charity Commission.  The Commission anticipates that it will target the largest charities first and have the process complete within 24 months.  It will encourage charities to register online but will permit registrations in hard copy also.  

See the Charity Commission’s website for full details on the establishment of the Register and the indicative timetable. Download NICVA's updated briefing paper below.

News from the Charity Commission (January 2010)

NICVA has got the latest update on the implementation timetable for various provisions of the Charities Act following a recent meeting with the Secretariat of the Charity Commission for Northern Ireland. Whilst the Commission does not have possession of the Inland Revenue’s listing of charities registered for tax purposes in Northern Ireland as yet (plan to receive it in February) it is envisaged that the charity register will still go live in April of this year as was originally planned.  The Commission will conduct an awareness raising campaign before May to communicate what will be expected of charities. Download the updated briefing paper below, or read the full article.

Public benefit test guidance consultation launched (September09)

The Charity Commission for Northern Ireland has embarked on its first major piece of work with the launch of the public benefit test guidance for consultation on 3 September in NICVA.

To find out more about the public benefit test and how this impacts on registering as a charity it is advisable to go along to one of the evening consultation sessions arranged by the Charity Commission throughout Northern Ireland or download the consultation document from the Commission's interim website.

DSD advertises Charity Commissioners' Positions (January 2009)

The Department for Social Development is seeking to appoint a Chief Commissioner to lead the Commission, as well as a Deputy Chief Commissioner and up to five Charity Commissioners, including a legally qualified Commissioner.

The Charity Commission can now commence its work as it has already been given the power to operate and fulfil its duties by the First Commencement Order which was passed in March 2009. The Department for Social Development still has to appoint a Commissioner who is legally qualified.

Royal Assent for Charities Act (NI) 2008 (April 2008)

The long awaited new charities legislation for Northern Ireland received Royal Assent on 9 September 2008. Many of the provisions of the Charities Act require secondary legislation and as such will be introduced in stages. The Department for Social Development anticipates that all parts of the Act should become fully operational by early 2011. It is expected that the Charity Commissioners will be appointed and the Charity Commission established in April 2009.

The first main business of the new Commission will be to consult on public benefit guidance and this exercise will probably take place in May or June 2009. It is envisaged that charities will not be required to register with the Charity Commission until the spring of 2010 with the first reporting requirements happening the following year in April 2011. The new rules for fundraising and public collections are not likely to take effect until 2011.

The Charities Implementation Team in the Department has set up a Charity Regulation Stakeholder Forum to consider the implications of the new Charities Act. NICVA is represented on this group and will keep the sector informed of any important issues that may emerge as well as raising any concerns to the Forum.

The Department has set up an interim website for the new Charity Commission for Northern Ireland which provides information on the Charities Act, the role of the new Commission and the timescales for implementation. The Department will update this website until the Commission is in place and is in a position to develop its own corporate image.

NICVA produced a Briefing paper on the Charities Act for our members.

Final Stages for Charities Bill

The Charities Bill (as amended at consideration stage) reached its final stage in the Assembly on 30 June and is now waiting Royal Assent. The Social Development Committee published its Report on the Charities Bill to the Assembly on Tuesday 13 May 2008.

It is anticipated that the Charities Bill will receive royal assent in mid September 2008.

Assembly grants Committee for Social Development more time

The Charities Bill will not be enacted in the first part of 2008 as had been anticipated.

The Committee for Social Development, which is currently considering the Bill, has been granted an extension until 27 June 2008 to allow the Committee sufficient time to consider the views of all submissions and to compile its report on the Bill. It is now envisaged that it will be late summer at the earliest before the new charities legislation comes into being.

For further information on this latest announcement visit the They Work for You website

Charities Bill for Northern Ireland introduced

The Charities Bill for Northern Ireland was introduced to the Assembly on 10 December 2007. The Bill which replaces the draft Charities (NI) Order 2007 (which was originally intended to be enacted earlier this year in Westminster) will:

• provide statutory definitions of 'charity' and 'charitable purpose'
• establish a Charity Commission for Northern Ireland and a Charity Tribunal
• create a Register of Charities for Northern Ireland
• introduce the Charitable Incorporated Organisation (a new form of charitable body)
• set out new rules with regard to fundraising and collections

Submit evidence to the Assembly Committee

The Charities Bill is now moving through the Committee Stage of the legislative process of the Assembly , which will hear oral evidence from interested parties, including NICVA. Any organisation or individual with an interest is invited to submit written evidence to the Committee via email (in MS Word format ) by Tuesday 5 February 2008.

Background

The Charities (NI) Order 2007 which was laid before parliament in January will not continue its passage through Westminster as planned. Instead, with the restoration of Devolution on 8 May 2007, the new Minister will consider the charities legislation for referral to the Northern Ireland Assembly.

If the legislation had been passed through Westminster the new Charity Commission would have been established by the end of Summer 2007 and the first registrations taken by the end of December 2007. It is now anticipated that the legislation will be delayed by approximately one year and consequently the proposed timetable for the Charity Commission and the implementation of the other provisions in the Draft Order will also be delayed by at least one year.

Some of the key issues that emerged during the consultation period on the draft Charities (NI) Order 2006 influenced change on the Order that was laid before parliament, most notably, the accounting and audit thresholds. NICVA welcomes the Department’s decision to bring the accounting thresholds and audit requirements in line with the rest of the UK which is a considerable change from the draft Order which was consulted on.

NICVA, however, was concerned that the Charities (NI) Order 2007 listed a ‘Fellow’ instead of ‘Full Member’ of the Association of Independent Examiners (ACIE) as a type of prescribed person permitted to carry out a qualified independent examination. The Department has accepted that this is a valid point and has stated that it will amend Article 68.

There were only two other substantial changes from the draft Charities Order 2006 that was consulted on. Firstly, a requirement has been added that a permit must be sought for a house-to-house collection to be carried out. Secondly, the advancement of sport as a charitable purpose now includes sports or games which promote health by involving mental skill and not just physical skill or exertion.

NICVA's consultation response 2006

As part of the 2006 consultation process, the Department co hosted various seminars with NICVA in Belfast, Londonderry/Derry, Newry and Omagh to give charities, and those working with them, the opportunity to discuss how the new regulations would affect their organisations. NICVA’s response to the draft Charities (NI) Order 2006 is informed by these consultation seminars and also from the work on the previous year’s consultation paper on the Review of Charities Administration and Legislation in Northern Ireland and the ongoing work of its Governance and Charity Advice section.