Review of the Charities Act 2005

The Minister for the Community and Voluntary Sector announced a review of the Charities Act 2005 on 24 May 2018. The purpose of the review is to ensure that the Act is effective and fit for purpose by reviewing issues arising under the Act and building on its current strengths.

According to the terms of reference, the scope of the review includes:

  • Whether any additional purposes of the Act are necessary
  • Matters relating to the regulatory framework
    • The role, functions, structure, powers, accountability and appeal ability of the charities regulator
    • The purpose and content of the publicly-accessible charities register
    • Funding for the regulator to administer the legislation
    • Mechanisms to challenge or appeal decisions of the charities regulator, including decisions over the interpretation of ‘charitable purpose’, and to support the development of case law
    • Offences and penalties
    • Regulation of third-party fundraisers.
  • Matters relating to registration and deregistration
    • Registration and deregistration requirements
    • The extent to which businesses that solely raise funds for registered charities can register under the Act
    • The extent to which registered charities can advocate for their causes and points of view.
    • Matters relating to the obligations of registered charities
  • The obligations of registered charities
    • The obligations of individuals on governance boards and in senior management roles in registered charities, including looking into governance standards for registered charities.
  • Links to other legislation
    • The interface between the provisions of the Act, and provisions in the Incorporated Societies Act 1908 (and proposed Incorporated Societies Bill), Charitable Trusts Act 1957 and the Trusts Bill (with the aim of better alignment).

Consultation will occur later in 2018, with legislation drafted in 2019 and any amendments to the current Act to occur in 2020. We will keep you updated in future editions of Moore Stephens Audit News and on our Facebook page. If you have any questions, please get in touch.

Published winter 2018.

Serious about your success?