By Charity Advice Unit from NICVA
Published on 25 Jun 2009
Charity law reform - the situation in Northern Ireland.
NICVA welcomes legislation and regulation to safeguard its members and the voluntary and community sector. Charity law reform is a key area of work for NICVA’s Governance and Charity Advice Unit.
Latest News - Charity Commissioners announced
Social Development Minister Margaret Ritchie announced the newly appointed charity commissioners for Northern Ireland at a special launch on 1 June 2009, which has been warmly welcomed by Seamus McAleavey, Chief Executive of NICVA.
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.
The recent introduction of charity legislation and the establishment of a Charity Regulator in Northern Ireland and the Republic of Ireland have heightened interest and concerns about the implications of regulations on charities, in particular with the charities that work in more than one jurisdiction. NICVA, in conjunction with The Wheel, is hosting a conference on the 30 June 2009 to cover these issues. Find out more here.
Royal Assent for Charities Act (NI) 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 August 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.
Download
NICVA has prepared a briefing paper on the Charities Act (NI) 2008. (88k Word doc)
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.
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 see
http://www.theyworkforyou.com/ni/?id=2008-02-12.5.1
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
Download NICVA's Briefing Paper
To help with your submissions, NICVA has produced a handy
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 by email (in MS Word format ) to: e: committee.socialdevelopment@niassembly.gov.uk 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.
Consultation on the draft Charities (NI) Order 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.
In summary, NICVA welcomed the provisions of the draft Order, which provides statutory definitions of charity and charitable purpose, establishes a Charity Commission for Northern Ireland and a Charity Tribunal, creates a Register of Charities for Northern Ireland, and introduces the Charitable Incorporated Organisation (a new form of charitable body) and sets out new rules with regard to fundraising and collections. NICVA had reservations however about the independence of the new Commission and strong concerns about the tight thresholds that were outlined for auditing requirements.
See Archive Consultations for all related papers on charity law reform in Northern Ireland.
Find out how charity law reform is progressing in England and Wales, Scotland and the Republic of Ireland
Visit the policy pages for more on legislation that affects the non profit sector.
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