'People want to know their money is going where it is supposed to': Stricter regulation of charities announced

The amendments proposed will add financial regulations for the sector, introducing greater transparency in the way charities report.

Charities will face more stringent accounting laws and face more audits under new laws announced by the Government on Friday.

Minister for Rural and Community Development Heather Humphreys has published the General Scheme of the Charities (Amendment) Bill, the heads of which were approved at Cabinet earlier this week.

The Bill proposes to update existing charity law to improve the ability of the Charities Regulator to oversee the activities of charities by lowering the threshold for audits. Under the new rules, charities will only be exempt from audits if their balance sheet does not exceed €10,000, gross income does not exceed €10,000, or there are no employees

The Minister for Rural and Community Development, Heather Humphreys, published the General Scheme of the Charities (Amendment) Bill.  Picture: Gareth Chaney Collins

Announcing publication of the new legislation, Ms Humphreys said there was a need to strengthen trust in charities in Ireland.

“Charities throughout the country do fantastic work every day but unfortunately there have been some high profile controversies in the sector in recent years," she said.

“People want to know when they donate to Charity that their money is going where it is supposed to and that it is being managed properly and responsibly.

Regulator powers

“This Bill strengthens the powers of the Charities Regulator to carry out its functions effectively so that the sector is well regulated and maintains full public trust and confidence."

The amendments proposed will add financial regulations for the sector, introducing greater transparency in the way charities report.

The Bill improves the ability of the Charities Regulator to oversee the activities of charities by lowering the threshold for audits. 

Other elements of the Bill include:

•  Clarification on the general duties of trustees;
•  Strengthening the regulator’s powers in relation to the protection of charitable organisations;
•  The establishment of ‘the advancement of human rights as a recognised charitable purpose.

Minister of State with responsibility for Community Development and Charities, Joe O’Brien, said that "proper regulation and guidance to the charities sector" protects the sector and "gives our citizens the confidence needed to continue to give generously to many worthy charitable causes".

"It is important that we strike the right balance between necessary regulation and proportionate governance, ensuring that a reasonable and fair approach is at its core," he said.