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This report into the implementation of the Charities Act 2006 finds the Charity Commission being asked to do too much, with too little. The charitable sector is at the heart of UK society, involving millions of people and £9.3 billion received in donations in 2011/2012. Around 25 new applications for charitable status are received by the Charity Commission every working day. Among the reports findings are: one of the keys tests set by the Charities Act 2006 for determining charitable status-the public benefit test-is critically flawed; the Government should revise the statutory objectives for the Charity Commission, to allow the Commission to focus its limited resources on regulating the sector; the proposal to increase the financial threshold for compulsory registration of a charity with the Charity Commission should be rejected; charities should publish their spending on campaigning and political activity. PASC criticises the way the Charity Commission has interpreted public benefit under the Act. The Committee also considered the impact of face-to-face fundraising, or "chugging"-on the street or on the doorstep-and warns that self-regulation has failed so far to generate the level of public confidence which is essential to maintain the reputation of the charitable sector. The evidence was clear that the regulation of fundraising remains a concern for many members of the public. Two in three people have reported feeling uncomfortable as a result of the fundraising methods used by some charities.
This report scrutinizes the effectiveness of the Charities Act 2006 and the Charity Commission's role in overseeing public benefit. The report, produced by the House of Lords Merits of Statutory Instruments Committee, identifies critical flaws in the public benefit test and suggests revising the Charity Commission's statutory objectives to enable better focus on sector regulation. It also argues against increasing the financial threshold for compulsory registration and mandates that charities disclose spending on campaigning and political activities. Furthermore, the report criticizes the Charity Commission's interpretation of public benefit and addresses public concerns regarding face-to-face fundraising methods.
This report from the House of Lords Merits of Statutory Instruments Committee offers a critical assessment of the Charities Act 2006 and its implementation. It highlights significant concerns regarding the public benefit test and the operational capacity of the Charity Commission, suggesting a need for revised objectives and clearer guidelines. The findings also address public unease with certain fundraising tactics, indicating a gap in self-regulation that impacts sector reputation. The report's detailed findings and recommendations aim to inform policy and improve the governance and public perception of charities in the UK.
Page Count:
158
Publication Date:
2013-01-01
Publisher:
The Stationery Office
ISBN-10:
021505878X
ISBN-13:
9780215058782
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