Regulator planned under charities reforms

Charities which fail to follow new rules aimed at improving the multi-billion-euro sector will be named and shamed, it emerged today.

Under legislation to reform the sector, a regulator will take control, promoting confidence and trust among the public but threatening sanctions against bodies who flout strict guidelines.

The Charities Bill also requires groups to file annual returns.

Richard Dixon, chairman of the Irish Charities Tax Reform Group (ICTRG), said the laws would be a huge step in the right direction.

“The charity sector in Ireland has been calling for a regulator to oversee its work and support its development for the past 20 years,” Mr Dixon said.

“The legislation looks comprehensive in that, for the first time, there is a legal definition of charity, (and) all charities have to register with the regulator.”

And he went on: “Charities’ annual returns will be made available to the public and there has been a commitment to ensure that the administrative demands are proportional to the size of the organisation.”

The ICTRG, which represents around 150 of the country’s charities, has estimated the sector is worth around two billion euro a year.

Noel Ahern, junior minister at the Department of Community, Rural and Gaeltacht Affairs, said the legislation would ensure mandatory registration, regulation and supervision.

“For the first time, too, there will be a statutory definition of what a charity is,” he said.

Included in the general scheme of the Charities Bill will be a statutory definition of charitable purposes, rules for a register of charities and the regulation of fundraising.

The regulator’s job will be to decide whether a group can be classified as a charity.

The postholder will also promote trustees’ compliance with their legal obligations in managing charities, promote the effective use of resources and enhance accountability.

The Bill also sets out rules on what is classed as a charitable purpose. Charities must show funds are for the prevention or relief of poverty, distress or disadvantage, the advancement of education and religion and other community benefits such as human rights, peace and health.

Disputes will no longer be settled in the courts, with an appeals board being set up for resolutions.