New regulations on collections

Charities Bill published

Charities Bill published

Private schools will not automatically lose their charitable status under new Government proposals contained in the Charities Bill.

The Government stress the bill is designed to provide a “modern, sustainable framework” for charitable organisations and make administration more efficient.

“Public benefit” will become the key test as to whether an organisation will receive charitable status.

Launching the bill, Charities Minister Fiona Mactaggart said: “Charities can make a real difference to countless people’s lives. Thousands of people benefit from charitable action.

Many others donate money, volunteer their time and talents or work as a trustee. Charities are held in high regard.

“The Charities Bill builds on this foundation of confidence in the work of the sector, reforming charity law and regulation with an emphasis on public benefit and the significant regulatory role of the Charity Commission.”

The Conservatives home affairs spokesperson Jacqui Lait said that she particularly welcomed the fact that independent schools and private hospitals will be able to keep their charitable status.

She said: “We are pleased that the Government recognises the public benefit of charitable schools and hospitals, and that this bill will be no threat to their continued existence.

“However, we will be scrutinising the legislation closely to see what changes have been made by the Government following the report of the Joint Commons and Lords Committee on the draft published earlier this year.”

Among the measures included in the bill include relief from liability for trustees who make honest mistakes and the introduction of a new potential structure for charities, the Charitable Incorporated Organisation, which is designed to simplify administration.

The Charity Commission will now be tasked with regulating anyone collecting funds in public places for good causes.

Its chair, Geraldine Peacock, said: “We warmly welcome the Government’s statement that the Commission’s independence is of paramount importance for the proper regulation of charities and for public confidence in charities.

“I am also delighted that the Bill will provide a modern framework for us to work in partnership across traditional boundaries to increase effectiveness and grow public trust and confidence. Our new role in registering public collections will help this even further.”