What are the key issues facing charities today? Funding problems, rising demand, trying to keep Government on track over public service reform, getting more volunteers and higher levels of giving.
So what do the Commons Public Administration committee
think is our big challenge? Defining
public benefit and reforming charity law!
ACEVO has responded to their Report on the Charity Law
and the Commission, published today. In particular the proposal for Parliament
to redefine "public benefit" and force charities to publish how much
they spend on campaigning.
This is bad report. It is an unhelpful and unnecessary
distraction, at a time when charities need distraction like a hole in the head.
The problem of a
few charities struggling with the public benefit test is not a nut that needs
cracking with new legislation and an orgy of parliamentary debate as to how
charities should be regulated.
The fundamental
point that the report misses is that what we need is for the Charity Commission
to get its act together and be given the resources to do its job, not
politicians meddling in how charities are defined and run.
At a time of deep
recession, mounting social need and declining income, charities need to be left
to get on with the job, not distracted by MPs determined to open Pandora's Box
and redraw the line on what is considered charitable.
The fact is much time and debate was spent on the whole
issue of how you define charities at the beginning of the century when we
debated the Cabinet Office report on public benefit and then in the run up to
the new Charity Act in 2006. The broad consensus is that trying to define
exactly what public benefit means is a can of worms. The idea that politicians will define this is
anathema. So what will they decide on public schools for example? In or out? That
is why we have always left this issue to be sorted under the good old English
common law. Case law has been an entirely sensible way to resolve difficulties
of definition.
Whilst a tiny number have struggled with the public
benefit test, the vast majority of charities are perfectly happy to prove how
they have benefited the public and have had no problem in doing so. The Charity
Commission is revisiting its guidance to resolve the confusion that there has
been in a handful of cases.
They dismiss entirely sensible arguments and the proposal
from Lord Hodgson on allowing charity trustees themselves whatever to pay
trustees in a badly argued and illogical section that misses the point. No one
is arguing that trustees should be paid but, as Hodgson argued, charities
should be allowed to determine these themselves.
The proposal to force charities to account for how many
hours they spend on campaigning is an entirely unnecessary piece of red tape at
a time when charities are struggling quite enough as it is. The committee
presents no evidence that the extra bureaucracy is needed; beyond the views of
an individual witness whose motives the committee questions in its own report.
The report’s own
evidence shows that while 1.1% of the public say their trust in charity has
reduced in the last two years because of campaigning activity, 67% of the
public think charities should be able to campaign on the causes they represent.
So the proposal is entirely without foundation and would impose a regulatory
burden that would mean more donations being spent on bureaucracy, and less on
good causes. It is a regulatory madness and the Government should reject it.
Ironic that when some of Mr Jenkins' colleagues in the
Tory Party have been arguing the equal marriage bill is not a priority for
parliamentary time, he comes up this proposal to take on an issue that does not
require or need more legislation.
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