Update - 4th Stage Amendments Published for Charities Bill

The amendments proposed for 4th Report Stage of the Charities Bill have been published and The Wheel is happy to report improvements in relation to many of the priority issues that we have been advocating.

You can download the full list of amendments here:
www.oireachtas.ie/viewdoc.asp?fn=/documents/bills28/bills/2007/3107/B31a07D-DRN.pdf

As you may be aware, 4th Report Stage is scheduled to commence today in the Dáil, but because of other pressing Dáil business, it is unlikely that 4th Stage will be concluding this week.

Permitting Advocacy by Charities

We are happy to report that the section of the Bill which excluded organisations that promoted a “political cause” from being charities has been re-formulated to exclude only:
a) a political party, or a body that promotes a political party or candidate.
b) a body that promotes a political cause, unless the promotion of that cause relates directly to the advancement of the charitable purposes of the body.

We are of the view that this new formulation means that charities will be entitled to campaign and advocate on issues that are related to their charitable purposes.

There is also a proposal to exclude bodies that promote purposes that are contrary to public policy. Please note that we have been advised that this has nothing to do with excluding organsiations that promote purposes that are contrary to Government policy, but instead refers to a legal principle that a person is not allowed to do anything that would be harmful to or against the public good.

Charitable Purposes

The Wheel has been advocating for the inclusion of "the promotion of human rights" as a charitable purpose. Unfortunately, there is no proposed amendment to include human rights as a charitable purpose. There is, however, a new charitable purpose proposed: the advancement of environmental sustainability.

The Register of Charities

There is an amendment proposed such that all organisations with a CHY number will automatically be recognised as registered charities once the register is set up. This in practice should mean that all existing charities will be included on the register and that existing charities should not be concerned that they will face a new "test" to determine whether they are still considered charities by the new regulator.

Organisations that "Purport to be Charities"

The Wheel has argued for the need to ensure that organsiations that "purport" to be charities (such as bogus second hand clothes collectors) should not be able to continue their activities after the Bill is enacted. We are happy to report that there is an amendment that will make it an offense for an organisation (other than a registered charitable organisation) to publish materials i.e. notices, advertisements, promotional material or any other publications describing itself or its activities in such terms as would cause members of the public to reasonably believe that it is a charitable organisation. This should put an end to the activities of bogus clothing collectors etc.

Equality of treatment for Cash and Non-Cash fundraising / collections

The Wheel has argued strongly that cash collections and non-cash collections should treated equally in relation to the issuing of collection-permits by the relevant Garda Superintendent. We are happy to report that it is now proposed to allow collection permits for non-cash collections to be held at the same locality on the same day by giving the Chief Superintendent the discretion to either grant or refuse the non-cash collection. We are also pleased to see that similar general requirements will now apply for all collectors (the wearing of garments, the display of charity details, the purpose of the collection etc.).

We are also pleased to see that there are amendments that will permit fundraisers to apply for fundraising permits 12 months in advance (instead of the six months originally proposed) – this will allow charities to plan their fundraising well in advance.

Indemnification to be permitted for Trustees

We are happy to see that there is an amendment that will allow charities to indemnify their trustees out of charitable funds for any act done, or omitted from being done, in good faith and in the performance of his or her functions as a charity trustee.

Remuneration to be permitted for Trustees (for providing a service for a charity that is not related to their duties as a Trustee)

There is a proposal that charities will be permitted to make payments, that are reasonable and proportionate for services carried out by trustees (for providing a service for a charity that is not related to their duties as a Trustee). It is proposed that the charity's trustees must be satisfied that such a payment would be in the best interests of the charity and where there is only one charity trustee they must have the approval of the Charity Regulator before proceeding.

Dual Filing

The Wheel has argued that it is important that charities, registered as companies, are not expected to submit their reports to both the Charities Regulator and to the Companies Registration Office. It is now proposed that the Companies Registration Office will send a copy of the annual return and all documents attached to the Regulator for charities that are companies. Please note, however, that charities, that are companies, and that are not required to attach financial returns to their annual return under company law, will be required to send them to the Charities Regulator with their Annual Activity Report. The Annual Activity report is a requirement for all charities. All other charities will be required to supply financial statements to the Charities Regulator together with their Annual Activity Report.

The Wheel is also pleased to note that there is also an amendment to allow the Minister to set an audit threshold of up to €500,000 (instead of the €100,000 contained in the original Bill).

There are many other amendments included in proposals for 4th Stage of the Bill - we have restricted ourselves to advising on the most significant issues where we had sought changes.

If you would like further information on the 4th Stage, please contact me for further details.

I will keep you all informed of changes as they occur.

Ivan Cooper, Director of Advocacy
The Wheel, ISFC, 10 Grattan Crescent, Inchicore, Dublin 8.
Tel: 01 45 48 72 7 Email: gert@wheel.ie Website: www.wheel.ie

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Rotha Teoranta, trading as The Wheel, is a company limited by guarantee not having a share capital, registered in Dublin, Ireland with registered office at 10 Grattan Crescent, Inchicore and registered company number 30 22 82.

Rotha Teoranta is also a charity with CHY number 13288
Directors of Rotha Teoranta: Ann Marie Healy, Carmel Dunne, Carol Conway, Catherine Hickey, Etain Doyle, Fran Bissett, Ide Lenihan, John Dolan, Mary Cunningham, Nollaig Fahy, Olan McGowan, Paula Donohoe, Roger Sweeney, Salome Mbugua, Seamus Boland, Louise Oppermann