Review of Charities Administration and Legislation in Northern Ireland Seamus Murray Voluntary and Community Unit Department for Social Development

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Review of Charities Administration and
Legislation in Northern IrelandSeamus
MurrayVoluntary and Community UnitDepartment
for Social Development
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FACT OR FICTION

• Law could mute carol singers
• Watchdogs should look at charities
• Jury still out on charity watchdog
• Police may investigate children's charity
• Ulster charities used to launder paramilitary
  cash
• Businesses warned on charity scam
• Warning on bogus charity clothing collections
• Council backs call for charity commission
• Sources Belfast Telegraph, Newsletter, Third
  Sector

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CHARITIES SECTOR IN NI

• Relatively large voluntary and community sector
  compared to England, Scotland and Wales.
• Number of charities 4,500-5,000
• Total annual income approx. 657m
• Total expenditure 640m
• Total assets 750m
• Total workforce 29,168
• (State of the Sector III 2002 NICVA)

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WHY CHANGE

• Greater public awareness?
• Greater sense of probity in the sector
• Governance and accountability
• Crime prevention
• Change all around us
• Good house keeping

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CURRENT REGULATION

• No independent or semi independent commission or
  regulator in N. Ireland
• No register of charities in N. Ireland
• No approval process for charities in N. Ireland

• DSD main charity authority for NI
• Responsibility for policy and legislation
• Discharges functions under Charities Act
• Disposal of property
• Change of purpose
• Advice to trustees, solicitors, public

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REVIEW PROCESS

• Scoping study
• Internal consideration
• Advisory Group
• Ministerial approval
• Internal key stakeholder consultation
• Consultation
• Recommendations
• Implementation administrative and legislative

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PARAMETERS

• Legislation
• Tax
• Relationships to neighbours UK Ireland
• Cost
• Pragmatic and proportionate
• P(p)olitically acceptable

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KEY PROPOSALS

• Establishment of a N. Ireland Charities
  Commission
• Establishment of a fully inclusive compulsory
  charities register
• Requirement for all charities wishing to operate
  in N. Ireland to register
• Requirement for all charities to make annual
  returns financial and performance
• Commission to carry out functions of regulation,
  investigation and support/good practice
• Adoption of the 12 headings in English/Welsh
  draft bill
• Establishment of a public benefit test

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CONSULTATION-QUESTIONS ISSUES

• Do we need a commission?
• Should it sit within or without government?
• Could the service be contracted out or the role
  of another body extended to N. Ireland?
• Should the functions of investigation
  regulation be separated from guidance and
  support?
• Should there be exemptions for certain charities?
• What about the rest of the voluntary and
  community sector?

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OUR TIMETABLE

• Jan 04 -Advisory Group established
• Jun 04 -Advisory Group proposals to DSD Minister
• Sep 04 -Internal consultation with key
  stakeholders
• Oct 04 -Public consultation
• Jan 05 -Recommendations to Minister based on
  consultation
• Mar 05 -Drafting of legislation