Review of Charities Administration and Legislation in

Northern Ireland

Seamus Murray

Voluntary and Community UnitDepartment for Social

Development

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

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)

WHY CHANGE

Greater public awareness?Greater sense of probity in the sectorGovernance and accountability Crime preventionChange all around usGood house keeping

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

REVIEW PROCESS

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

legislative

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

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

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?

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