REGULATION OF CHARITIES IN NORTHERN IRELAND

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REGULATION OF CHARITIES IN NORTHERN IRELAND

• Seamus Murray
• Head of Charities Implementation Team
• Department for Social Development
• January 2009

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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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FOCUS

• Why do we need regulation?
• What has changed in the world?
• Who is regulation for?
• What is regulation?
• What is happening in Northern Ireland elsewhere?

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WHAT HAS CHANGED?

• Greater public awareness
• Greater sense of probity in the sector
• Governance and accountability
• Devolution RPA
• Crime prevention
• Modernisation of legislation housekeeping

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Income 467 million 3,800 employees
Income 290 million 5,700 employees
Students Union Income 291,000
Queens Students Union Income 2.6 million
Scottish Junior Chess Association Educational
Trust Income 1,000
European Society of Regional Anaesthesia and Pain
Therapy
Income 924,00
Income 1,744
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CHARITIES SECTOR IN NIWhat does it look like?

• Relatively large voluntary and community sector
  compared to England, Scotland and Wales.
• Number of charities 5500-6500-9000?
• 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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CHARITIES ACT (Northern Ireland) 2008What will
it do ?

• Charities Commission for Northern Ireland
• 12 headings plus 2 NI definitions
• Charity Test
• Fully inclusive compulsory charities register
• 167 Charities
• All charities to make annual returns financial
  and performance
• New regulation of Public Charitable Collections
• Charitable Incorporated Organisation
• Trustee indemnity insurance
• Deregulation
• Charity Tribunal

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CHARITY COMMISSION FOR NORTHERN IRELAND
CCNIWhat is its role?

• Public confidence objective
• Public benefit objective
• Compliance objective
• Charitable resources objective
• Accountability objective
• Trust Confidence - Awareness - Understanding -
  Effectiveness

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STRUCTURE OF CCNI
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CHARITY ACCOUNTS
100k to 500k
500k or more
100k or less
Yes
Prepare fully accrued audited accounts as per
clause 65 (2)
Yes
Are you a company?
Are you a company and balance sheet more than
2.8 m?
No
No
Does your constitution Say you should produce
accrued accounts or have your trustees decided
that you should?
Prepare fully accrued accounts as per clause 65
(3)
Yes
No
Prepare receipts payments accounts with
statement of assets liabilities as per 64 (3)
Accounts signed off by independent examiner
Accounts signed off by auditor
Accounts signed off by independent person
Return made to Charity Commission for Northern
Ireland
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PUBLIC BENEFIT

• Established for charitable purposes ONLY
• Fall within one of 12 headings
• AND
• Is for the public benefit
• Not party political
• No presumption of public benefit
• Public benefit test
• Benefit gained or likely to be gained by members
• Detriment incurred or likely to be incurred
  compared with the benefit gained or likely to be
  gained
• Whether any condition, charge or fee is unduly
  restrictive
• CCNI must issue guidance
• Public consultation

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RELIGION AS A CHARITABLE PURPOSE

• CLAUSE 2. (2) (C)
• The advancement of religion
• CLAUSE 2. (3)
• In subsection (2)---
• (a) in paragraph (c) religion includes---
• (i) a religion which involves belief in one god
  or more than one god, and
• (ii) any analogous philosophical belief (whether
  or not involving belief in a god)

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DESIGNATED RELIGIOUS STATUS

• Recognition of special circumstances
• Sought after registration
• Not automatic, must apply, discretion of CCNI
• Conditions to be met
• Advancement of religion principle purpose
• Regular holding public worship principle activity
• Established in N. Ireland least 5 years
• Sound internal governance structures
• Does not remove reporting or accounting
• Exemption clause 33-36
• Powers intervention
• Suspension, removal appointment
• Interim manager
• Direction to protect
• Can be withdrawn

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UK IRELAND REGULATORS FORUMHow do we seek
consistency in approach?

• Established October 2006
• Membership CC / OSCR / DSD / Dept. of
  Community Rural and Gaeltacht Affairs (ROI)
• Forum for discussion on charity matters between
  jurisdictions
• Address issues of consistency interpretation
• Black bag collections

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CROSS BORDER ALL ISLAND CHARITIES

• Cross Bordering Monitoring Group established to
  consider issues.
• Need to minimise over administration reporting.
• Agree joint monitoring arrangements.
• Ensure reporting of activities in each
  jurisdiction.
• Ministerial meeting to consider all-Ireland
  charities.

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TIMETABLEWhen is this all going to happen?

• Sep 08 Royal Assent
• Mar 09 Appointment of Commissioners
• Apr 09 Commencement regulations
• Apr 09 Commission established
• May 09 Consultation on public benefit
• Apr 10 First new registrations
• Oct 10 Charitable Incorporated Organisations
• Jan 11 Public collections

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Does charities regulation matter and who cares?

• Charities
• Public
• Police
• Politicians
• Media
• You

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CONTACTSHow to get in touch

• Seamus Murray tel [phone]
  seamus.murray_at_dsdni.gov.uk
• Roy Mc Givern tel [phone]
  roy.mcgivern_at_dsdni.gov.uk
• Vera Mc Cann tel [phone] vera.mccann_at_dsdni.g
  ov.uk
• Kieran Doyle tel [phone] kieran.doyle_at_dsdni.g
  ov.uk
• www.dsdni.gov.uk
• www.charitycommissionni.org