Overview

The Charities Bill [HL] is a consolidation bill aiming to simplify and bring together existing laws related to charities in the UK. It replaces several previous acts and regulations, streamlining the legal framework governing charity registration, operations, and regulation.

Description

The bill significantly overhauls charity law in England and Wales, with provisions extending to Scotland and Northern Ireland in specific areas. Key aspects include:

Definition of Charity:

The bill defines "charity" and "charitable purpose," clarifying the public benefit requirement. It lists specific charitable purposes (e.g., poverty relief, education, religion) and allows for analogous purposes to be considered.

Charity Commission and Regulation:

The Charity Commission's objectives and functions are outlined, including regulating charities, investigating misconduct, and disseminating information. It details information-gathering powers, including the ability to conduct inquiries and issue search warrants. Exempt charities (specified in Schedule 3) are subject to different regulatory regimes.

Charity Registration and Names:

The bill covers charity registration requirements and processes, including provisions for exceptions and voluntary registration. It provides the Charity Commission with the power to require name changes if deemed misleading or offensive.

Financial Reporting and Accountability:

The bill sets out requirements for charity accounting records, the preparation of annual accounts and reports (including group accounts for larger charities), and the frequency of audits or examinations. Financial thresholds determine the level of scrutiny.

Charity Trustees:

The bill defines "charity trustees," outlines disqualification criteria, and addresses issues of remuneration and indemnity insurance for trustees. It empowers the Commission to remove or appoint trustees if necessary to protect the charity's interests.

Charity Companies and CIOs:

The bill addresses specific regulations for charitable companies, including disclosure requirements and restrictions on altering objects. It also establishes a framework for Charitable Incorporated Organisations (CIOs), providing a new legal structure for charities.

Other Provisions:

The bill includes provisions on cy-près powers (allowing for the alteration of charitable purposes), dealing with charity land and property, charity mergers, and the establishment of common investment and deposit funds. It establishes a tribunal for appeals and references regarding Commission decisions.

Government Spending

The bill doesn't directly provide figures for the impact on government spending. However, it could lead to increased costs for the Charity Commission in terms of staffing, regulatory activities, and enforcement, alongside potential savings through streamlined administration.

Groups Affected

• Charities: The bill significantly impacts all charities, large and small, registered and unregistered, through new regulations on registration, financial reporting, governance, and trustee responsibilities.
• Charity Trustees: Trustees face increased responsibilities and potential liabilities related to compliance with the bill's provisions.
• Charity Commission: The Commission's role is expanded with more extensive powers and responsibilities for regulating and overseeing charities.
• Donors and Beneficiaries: Increased transparency and accountability requirements aim to enhance public trust and confidence in charities.
• The Public: The bill impacts the public through increased transparency in charity operations and the availability of information.

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