The Regulator for Charities in England and Wales
(Version December 2001)
A. The Charity Commission is a non-ministerial government department whose aim is to give the public confidence in the integrity of charity. It has a statutory responsibility to keep the register of charities up to date. In order to do so, it has to make judgements about what is and what is not charitable. Five Charity Commissioners, appointed by the Home Secretary from a number of areas, ultimately make these decisions. The decisions of the Commissioners are equivalent to those of the courts and are made in the same way by applying the legal rules that determine whether an organisation is charitable, which are mainly laid down in decisions of the courts on particular cases rather than set out in Acts of Parliament. Our Review publication Recognising New Charitable Purposes (RR1A) explains the scope the Commission has for recognising new charitable purposes.
A. The purpose of our Review is to take a long hard look at the register. We need to consider, within the law, whether those organisations that currently benefit from charitable status can still legally be regarded as charities. We will also look to see whether there is scope for legal recognition of organisations as charitable that are not registered at the moment. Our approach to this will be characterised by the use of our powers to apply and interpret the law in a way which fully recognises that what is legally charitable may change following trends in social and economic circumstances.
A. The Review is being conducted by Commission staff with the help of the public and those in the sector who offer us comments. We are tackling the Review by looking at types of organisations or particular themes in turn as it would not be practical for us to go individually through the 185,000+ charities on the register and examine each one’s continued claim to charitable status. Our aim is, as far as possible, to bring forward guidelines on each issue in turn so as to help determine the future treatment of organisations where that issue is relevant. In producing these guidelines we wish to consult extensively which is why we often publish a discussion paper on the issues before making any recommendations.
A. The Framework for the Review of the Register and the first two discussion papers Urban and Rural Regeneration and Unemployment were successfully launched in April 1998. An encouraging number of comments were received from the sector and the general public.
The Framework:
In response to comments received during the consultation on the Framework for the Review of the Register, we released two new publications. These responded to suggestions that we should keep a clearer distinction between those characteristics that are essential to an organisation obtaining charitable status and those which promote high standards of charity administration. The Review of the Register of Charities (RR1) which has recently been revised, contains what we now term "the essential characteristics of a charity" which are those that determine the charitable status of an organisation and will be used to inform Review decisions. The characteristics promoting high standards of charity administration are now in a separate publication The Hallmarks of a Well-Run Charity (CC60). We also reconsidered the use of the phrase "social value" which we had suggested as an alternative way of expressing "public benefit", one of the tests for charitable status. Many of those responding found the concept of social value baffling or thought it too difficult to measure. In the Essential Characteristics of a Charity we return to the more widely understood "benefit to the public".
A. The Board of Commissioners endorsed the recommendations made in the first two discussion documents. These were that the promotion of urban and rural regeneration in areas of social and economic deprivation for the benefit of the public and organisations for the relief of unemployment could be recognised as charitable purposes in their own right in certain circumstances and in accordance with agreed criteria. We published new guidelines on each issue, they are: The Promotion of Urban and Rural Regeneration (RR2) and Charities for the Relief of Unemployment (RR3).
A. Prior to the review there were already charities on the Register involved in the promotion of urban and rural regeneration and relieving unemployment as part of their activities. In the past these organisations were only registered on the basis that those activities furthered other already recognised charitable purposes, such as the relief of poverty or advancement of education. By accepting the promotion of urban and rural regeneration and the relief of unemployment as charitable purposes in their own right those organisations are now able to use objects that more accurately describe the work that they do. This also means that organisations working in these fields may be able to apply for registration as charities where they previously could not or would have found difficulties operating within the constraints of other charitable purposes. As with all charities, these organisations have to be able to demonstrate their benefit to the public and other charitable characteristics.
A. During 1999/2000 we issued discussion papers and published new guidance on The Promotion of Community Capacity Building RR5, The Recreational Charities Act 1958 RR4 and The Maintenance of an Accurate Register of Charities RR6. During 2000/2001 we issued discussion papers and published new guidance on The Independence of Charities from the State RR7, The Public Character of Charity RR8, and Preservation and Conservation RR9. December 2000 saw the launch of our consultation on the charitable status of Sport and on March 6th 2001 we issued a consultation paper on Museums & Art Galleries. As a result of the Sport consultation, we published new guidance on the charitable status of Community Amateur Sport Clubs in November 2001. Other consultations will follow.
A. In conducting the Review we are working closely with our colleagues in the Inland Revenue (because of its responsibilities for charities throughout the UK), the Scottish, Welsh Assembly and Northern Ireland Offices and other government departments. The final decisions are of course a matter for the Commission.
A. The Review is being carried out with full public consultation. We want it conducted openly with as much public input as possible. We actively seek comments from the voluntary sector and from those professionals, such as solicitors, serving it. Our discussion papers are available on demand and may be viewed on our website. We very much hope that the sector and the public will respond to these consultations enabling us to fulfil our commitment to wide public debate on these issues.
A. Individual consultation lists are drawn up for each area under Review. They consist of government bodies, charities, umbrella groups and other organisations with a particular interest or expertise in that area, as well as individuals who have expressed an interest in commenting on a particular issue. In addition all discussion papers are made available to members of the public on our website or by request.
A. No. The Review is a considerable undertaking, which will continue for several years, so there will be a rolling programme of work. Speculation in advance of a consultation on a particular topic could be unhelpful to individual charities affected by it and so we do not publish a planned programme of future topics. Also, the priorities of certain Topics are liable to change and progress is dependent to some extent on our limited resources.
A. No. The issues to be tackled by the Review are quite wide ranging and so the time taken to review each one will undoubtedly vary. Also, being committed to an extensive process of external consultation for the Review makes it difficult to forecast at the outset how long that process will take and what action will be required as a consequence.
A. We are taking an issue-based approach to the Review and the first issues to be tackled have been selected on the basis of the following criteria:
A. It is not possible to consider all the issues at once and so a systematic approach needs to be taken. Priorities have been, and will continue to be, established on the basis of the above criteria.
A. The government is not seeking to influence either what areas are reviewed or the outcomes of the Review. We are, however, making sure Departments have a chance to comment as part of the consultation process.
A. The Charity Commission is not embarking upon a review of charity law nor are we setting an agenda for changes in legislation. That is a matter for Parliament. However, we can respond flexibly to changes in society in deciding what is or is not charitable within the limits laid down by earlier court decisions or Acts of Parliament.
A. It is the role of Parliament and the courts to make changes to charity law. The development of charity law has, properly, been led by the sector, which has a record of innovation. The courts have also stated that the law must recognise changing social circumstances. The role of the Commission is, like that of the courts, to interpret and apply charity law and, in doing so, we have used our powers flexibly to respond to social changes by both including and excluding some types of organisation from the register (individually and generically). There is therefore nothing new in our using our powers to develop the boundaries of charitable status within the law as it stands. The Review of the Register is a continuation of that tradition.
A. In the response to the Deakin Report it was announced that we would undertake a systematic review of organisations on the Register. It is for Ministers and Parliament to consider whether any changes in the law are necessary. There are no plans to do so at present.
A. It is not the purpose of this Review to produce a new classification of charitable purposes.
A. Public opinion cannot determine what is and is not charitable in individual cases. But the Commission, like the courts, is able when considering issues of public benefit generally, to have proper regard for public opinion. However, we will not let this proper regard be used inappropriately or stand in the way of the acceptance of the charitable status of new initiatives nor will we have regard for prejudice (even where it is expressed as widespread opinion).
A. As part of the Review we consider areas which are not currently regarded as charitable and this can lead to the recognition of new charitable purposes which push back the boundaries of charitable status. It is not possible to identify now all the areas those are likely to be. However, as an example, two of the first decisions we made as a result of the review were to recognise the promotion of urban and rural regeneration in deprived areas and the relief of unemployment as charitable purposes. Our Review publication Recognising New Charitable Purposes (RR1A) explains the scope the Commission has for recognising new charitable purposes.
A. The purpose of the Review is to ensure that the Register of Charities is up to date and that the law on what can or cannot be a charity keeps in step with changing social circumstances. A consequence of this Review may be that it paves the way for the creation of new charities. But it would be wrong to artificially stifle innovation simply to curtail the number of new charities. We would not, therefore, regard any concerns expressed in this area as reason for not developing further the boundaries of charitable status.
A. The purpose of the Review is not to reduce the number of charities on the Register. A consequence of it may be that we conclude certain types of organisation currently included on the Register are no longer entitled to remain there and, as in the case of our review of rifle and pistol clubs, a number may be removed. However, the Review is not being driven as an attempt to reduce the number of registered charities. Rather, we are concerned to ensure that those organisations that remain on the Register are entitled to be there, whether this results in an overall increase or decrease in the number of registered charities.
A. The Review is being conducted on an issue by issue basis, rather than focusing upon individual charities. We have identified those issues that will be tackled early on in the Review, and organisations affected by our review into those areas will be given ample opportunity to contribute to the consultation process.
A. The Review is being conducted on an issue by issue basis, rather than focusing upon individual charities. Our recently revised publication The Review of the Register of Charities (RR1) identifies the essential characteristics of a charity. Some of those characteristics deal with the accessibility of benefits from a charity and this will guide us when reviewing any type of charitable organisation for which accessibility for the public at large features as an issue.
A. We are unlikely to be considering the charitable status of independent schools as a separate review topic. We cannot, nor would we want to, undo the position that the promotion of education is a proper charitable aim. But we will be seeking to ensure that the law is correctly applied in this area. It is too early to say what the results of future review topics will be for individual or groups of charities (including schools).
. . . and religious charities?
We are looking at certain groups of religious charities whose status has been queried by the Church of Scientology during their application for charitable status. In reporting why that application was refused, the Commissioners set out the criteria used to determine whether an organisation is a charity for the advancement of religion (see the Commissioners decision on the application for charitable status by the Church of Scientology. We need to ensure that these criteria are being met by religious charities currently on the Register. However, this is not being dealt with as a general Review of the Register topic.
A. The purpose of the Review is not to identify specific non-charitable organisations and then determine whether or not they should be regarded as charitable. The Review is considering some areas that are not currently regarded as charitable, but it is not possible at this stage to indicate whether our review of those areas is likely to affect organisations such as Amnesty International or Greenpeace. Certainly one could not predict the outcome of those Review areas to speculate about any future claim to charitable status by those organisations. All the Review areas will be the subject of very wide public consultation so that those organisations, and all other non-charitable organisations that might be affected, will be given ample opportunity to comment upon any proposals.
A. Yes. The flexible use of the Commission’s powers to respond to changes in social circumstances is nothing new. Some examples of the occasions where we have done this in the past can be found in our publication The Review of the Register of Charities (RR1). They include, charities operating overseas, the promotion of good community relations and fair trading schemes.
A. The Review of the Register is not about finding ways to remove organisations from it. The implications of the Review for organisations that are currently on the Register will vary. For example, existing charities need take no action as a result of announcements on unemployment and urban and rural regeneration. But some charities may want to amend their objects to include these new purposes where that is appropriate to more accurately reflect the work they do, such charities should seek guidance form us first. Other organisations may be able to apply for registration where previously they could not.
In other cases in the future some charities may need to consider whether they are able to amend their objects (where their existing objects are no longer considered charitable) and some may be removed from the Register. Whatever the implications, nothing will happen without extensive consultation with the organisations affected and, where appropriate, their national representative bodies. The implications of the Review may be complex, in particular the mechanisms for dealing with assets held by organisations removed from the register, which is why we have recently published detailed new guidance on these issues entitled Maintenance of an Accurate Register of Charities (RR6)
A. We cannot predict at the outset of the Review how many charities might be removed as a result of this review. It is likely that for some organisations removal from the Register may be a consequence but it is impossible to quantify this.
A. We recognise that it is an expensive, and for some organisations, prohibitive, process to appeal against Commission decisions. Therefore, as part of our procedures we have in place a decision review procedure so that anyone concerned that a decision is not right in law or fact may ask for the decision to be reviewed by someone other than the person who took it. There are various stages to the review procedure during which the decision is fully tested and considered, with the final decision being taken by the Commissioners. Appeal mechanisms to the courts also remain and are not superseded by these new procedures. Ultimately, any organisation that objects to being removed from, or placed on, the Register can appeal to the High Court under section 4 of the Charities Act 1993. Guidance on our review of decisions procedure can be found on our website.
A. The purpose of the Review is not to reduce the number of registered charities. Where it appears that an appropriate consequence of the Review for some organisations would be for them to merge then we would of course assist them in this course of action.
A. This depends on the reason why the organisation is removed and the legal structure used by the organisation. This is an important and complex issue on which we have consulted as part of the Review. The result of the consultation was the publication of the new guidance Maintenance of an Accurate Register of Charities (RR6).
A. This depends on the reason why the organisation is removed and the legal structure used by the organisation. This issue is, of course, of considerable interest and importance to the sector and forms part of our new guidance Maintenance of an Accurate Register of Charities (RR6).
A. This will be considered on a case by case basis depending upon the legal structure of the organisation concerned, its existing objects and the extent to which we are able to use our powers to approve the change of objects.
A. If some of the objects of a charity are no longer considered to be charitable the Commission will assist the charity by appropriate legal means to amend its objects to those that are exclusively charitable.
A. The Review is not concerned specifically with exempt and excepted charities, but some of the issues to be reviewed will inevitably have implications for some of those organisations. We have, together with the Home office, been carrying out a review of the criteria for exception under the Charities Act 1993. This review has been suspended pending the outcome of the PIU study of the voluntary sector which is due to finish early in 2002. This is however separate from the Review of he Register."
A. The monitoring and supervision of charities is an extremely important area of the Commission’s work and is something into which we are channelling a considerable amount of time, effort and resource. However, it is not the only area of the Commission’s work. We do have a responsibility to ensure that the law on what can or cannot be charitable is kept under review to keep pace with changing social circumstances. The Commission’s aim is to give the public confidence in the integrity of charity. This means that the concept of charity must have credibility in our modern society. We cannot therefore simply concentrate on our monitoring and supervision of organisations currently regarded as charitable at the expense of our responsibilities to develop the boundaries of charitable status. That said, the Review is not affecting the continuing work of the Commission in monitoring charities and dealing effectively with any fraud or poor practice found.
A. The PAC drew attention to the importance of maintaining an accurate Register of Charities. The Review is part of this process. The public expects that all those organisations entered on the Register are genuinely entitled to that status and that the boundaries of charitable status will keep up with modern social and economic circumstances.
A. The forward programme for the Review is being kept flexible so that we may take on board responses to the public consultations we conduct and can take account of our operational needs as they develop. Changes in priorities and resources have to be allowed for. We try to publish the next phase of the work programme as they are decided, but we do not want to trigger comments on a particular Topic before we are ready to deal with them.
A. The implications of the Review for individual charities will vary. All charities will be given ample opportunity to comment upon any proposals arising as a result of the Review and no action will be taken in respect of individual charities without prior consultation with those bodies. Similarly, anyone thinking of setting up a charity can contribute to the consultation process, particularly where the objects of their organisation are novel and may propose the extension of charitable status to a new area. In general, charities will be able operate in a climate in which charitable status has credibility in a modern society.
A. The purpose of the Review is to contribute towards the Commission’s aim to give the public confidence in the integrity of charity by ensuring that charity law is kept up to date with changing social circumstances and so has credibility in a modern society. The public will be involved extensively in the process and so will be given the opportunity to contribute to the development of charity law in so far as this is appropriate.
A. Copies of all the Review publications and consultation documents can be printed from our website.
Alternatively you can email us
A. Further information about the Review can be obtained from
Review of the Register Team
Charity Commission
Woodfield House
Tangier
Taunton
Somerset TA1 4BL
Press enquiries should be directed to:
Press Office
Harmsworth House
13 – 15 Bouverie Street
London EC4Y 8DP
Tel: 0171 674 2333
A. Comments should be sent to:
Review of the Register Team
Charity Commission
Woodfield House
Tangier
Taunton
Somerset TA1 4BL or to review@charitycommission.gsi.gov.uk