New simplified charities legislation comes into effect
New legislation that simplifies and consolidates several pieces of charity law has now come into effect. The Charities Act 2011, which replaces much of the contents of the 1992, 1996 and 2006 Charities Acts and the 1958 Recreational Charities Act, should now be referred to in all charities' written documents and accounts. The Charity Commission has said that the new legislation will not affect the legal aspects of any of its published guidance, and charity documents will still be valid if they mistakenly refer to previous legislation. The 2011 Act omits a section of the 2006 Act that requires street and door-to-door fundraisers to obtain a certificate from the Charity Commission, as this requirement was never introduced and is to be re-evaluated in a forthcoming review of the 2006 Act by Conservative peer Lord Hodgson.
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Call for evidence for reviewof charities legislation
Conservative peer Lord Hodgson has issued a call for evidence to the voluntary sector and members of the public as part of an ongoing review of the Charities Act 2006. The call for evidence covers five areas: self regulation of fundraising; public charitable collections; complaints, appeals and redress; reporting and accounting requirements; and registration thresholds. The call for evidence document states: "We are particularly interested to hear from those involved in charity fundraising, or who have had cause to complain about charity fundraising. We would also welcome any comments from members of the public about their views on charity fundraising, self-regulation and transparency." Lord Hodgson's recommendations for reform of the Charities Act 2006 will be published by June this year.
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Managing risk better
The Charity Commission, the independent regulator and registrar of charities in England and Wales, has published a new Risk Framework for charities, aimed at helping the charity sector identify and better manage key areas of risk. The Framework sets out the Commission’s approach to regulation and how it assesses the particular risks that affect the charitable sector.
The Framework sets out how the Commission will ensure that charities are legitimately operated, and that trustees carry out their duties in a responsible manner. It also sets out how the Commission will assure the public that charities are properly run, and that charity money is properly accountable. The Framework also explains how the Commission will intervene where there are serious cases of non-compliance or abuse. The new Framework has been issued in the light of a restructuring of the Charity Commission following funding cuts. It places greater responsibility on charity trustees to tackle risks head on, with the aim of preventing problems before they occur. The Commission will continue to provide guidance, but will encourage charities to be more self-sufficient. In most cases, the Commission will only get involved in instances where there is ‘serious risk’.
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Government should help struggling charities
The Government should create a "stronger culture of giving" amid rising financial pressures on charities, the Charities Aid Foundation (CAF) has said. Hannah Terrey, head of policy at the CAF, said the Government could help by "being more vocal about their own giving to charity, encouraging the very wealthy to give more, and persuading businesses to support charities in a more consistent way." A separate report by the National Council for Voluntary Organisations (NCVO) revealed that the charity sector is facing increasing demand for its services, rising costs and a fall in income from donations. The report claimed that although 60% of people donated to charity in 2010/11, the value of their donations was £1 billion less than in 2007/08.
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New guide for charity investment plans published
A new good practice guide to help charities write investment policies has been published by the Charity Finance Group and the Charity Investors’ Group. Kate Rogers, chair of the Charity Investors’ Group, said a written policy would help trustees gain a clear vision of what they want to achieve with their investments. Caron Bradshaw, CEO of the Charity Finance Group, added: "Charities hold over £85 billion in investment assets and it’s crucial that they have proper governance in place. A written policy provides the framework for making investment decisions, helping trustees to manage a charity’s resources effectively and demonstrate good governance."
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New fund for third sector business centres in Scotland
A new £50 million fund for the creation of business centres for social enterprises and third sector organisations in Scotland has been launched by Unity Trust Bank and the Scottish Council for Voluntary Organisations (SCVO). The fund, which is now open for applications from SCVO members, provides loans for the purchase of premises or the refurbishment of existing properties. John Ferguson, director of development and programmes at SCVO, said: "Increasingly, we are seeing the ownership of premises become an important means by which voluntary organisations can control their costs and ensure sustainability."
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If you have any questions on the articles in the newsletter please contact me on jfisher@roffeswayne.com or 01483 416232.
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