REGULATION OF CHARITIES IN NORTHERN IRELAND Charity Commission for Northern Ireland (CCNI) REGULATION OF CHARITIES IN NORTHERN IRELAND

FOCUS Why do we need regulation? What has changed? Who is regulation for? What is regulation? What it means for you. What is happening in Northern Ireland & elsewhere?

What has changed? Greater public awareness Greater sense of probity in the sector Governance and accountability Devolution & RPA Crime prevention Modernisation of legislation & housekeeping

CHARITIES SECTOR IN NI What does it look like? Relatively large voluntary and community sector compared to England & Wales (170,000), Scotland (23,000) Republic of Ireland (7,500). Number of charities 5500-6500-9000? Total annual income approx. £570m Total expenditure £544m Total assets £737m Total workforce 26,737 Total volunteers 87,723 (State of the Sector V 2009 NICVA)

CHARITIES ACT (Northern Ireland) 2008 What will it do ? Charities Commission for Northern Ireland 12 headings plus 2 NI definitions Charity Test Fully inclusive compulsory charities register 167 Charities All charities to make annual returns financial and performance New regulation of Public Charitable Collections Regulation of professional fund-raisers Charitable Incorporated Organisation Trustee indemnity insurance Incorporation of charity trustees Deregulation Charity Tribunal

CHARITY COMMISSION FOR NORTHERN IRELAND What is its role? Public confidence objective Public benefit objective Compliance objective Charitable resources objective Accountability objective Trust – Confidence - Awareness - Understanding - Effectiveness

PROPOSED STRUCTURE OF CCNI

CHARITY COMMISSIONERS Tom Mc Grath Paddy Sloan Walter Rader Philip Mc Donagh Angila Chada Paul Cavanagh

CHARITABLE HEADINGS a) the prevention or relief of poverty; b) the advancement of education; c) the advancement of religion; d) the advancement of health or the saving of lives; e) the advancement of citizenship or community development; f) the advancement of the arts, culture, heritage or science; g) the advancement of amateur sport; h) the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity; i) the advancement of environmental protection or improvement; j) the relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage; k) the advancement of animal welfare; l) any other purposes within paragraph (4). In paragraph (2) (a) in sub-paragraph (c) “religion” includes (i) a religion which involves belief in more than one god, and (ii) a religion which does not involve belief in a god; (b) in sub-paragraph (d) “the advancement of health” includes the prevention or relief of sickness, disease or human suffering; (c) sub-paragraph (e) includes (i) rural or urban regeneration, and (ii) the promotion of civic responsibility, volunteering, the voluntary sector or the effectiveness or efficiency of charities; (d) in sub-paragraph (g) “sport” means sport which involves physical skill and exertion; (e) sub-paragraph (h) includes the advancement of peace and good community relations; and (f) sub-paragraph (j) includes relief given by the provision of accommodation or care to the persons mentioned in that sub-paragraph.

PUBLIC BENEFIT Established for charitable purposes ONLY Fall within one of 12 headings AND Is for the public benefit No presumption of public benefit Not party political Public benefit test Benefit gained or likely to be gained by members Detriment incurred or likely to be incurred compared with the benefit gained or likely to be gained Whether any condition, charge or fee is unduly restrictive CCNI must issue guidance Public consultation

RELIGION AS A CHARITABLE PURPOSE CLAUSE 2. (2) (C) The advancement of religion CLAUSE 2. (3) In subsection (2)--- (a) in paragraph (c) “religion” includes--- (i) a religion which involves belief in one god or more than one god, and (ii) any analogous philosophical belief (whether or not involving belief in a god);

DESIGNATED RELIGIOUS STATUS Recognition of special circumstances Sought after registration Not automatic, must apply, discretion of CCNI Conditions to be met Advancement of religion principle purpose Regular holding public worship principle activity Established in N. Ireland least 5 years Sound internal governance structures Does not remove reporting or accounting Exemption clause 33-36 Powers intervention Suspension, removal & appointment Interim manager Direction to protect Can be withdrawn Exemption clauses 33-36. Power to act for protection of charities. suspend or remove any person staff agent or trustees appoint additional trustees vest property secure and not sell property debtors not to make payments or discharge liabilities restrict transactions appoint an interim manager establish a scheme for removal of trustees Power to give direction for protection of a charity

CHARITY ACCOUNTS £100k or less £100k to £500k £500k or more Are you a company? Yes Are you a company? Yes Prepare fully accrued audited accounts as per clause 65 (2) No No Does your constitution Say you should produce accrued accounts or have your trustees decided that you should? Yes Prepare fully accrued accounts as per clause 65 (3) No Prepare receipts & payments accounts with statement of assets & liabilities as per 64 (3) Accounts signed off by independent person Accounts signed off by independent examiner Accounts signed off by auditor Return made to Charity Commission for Northern Ireland

CHARITY TRIBUNAL What if I don’t agree? New independent body established by Charities Act. Will hear and determine on appeals and applications made to it relating to decisions by the CCNI. List of reviewable matters at schedule 3 Appeals/applications may be brought by; Attorney General Trustees The charity Individual persons affected by a decision by CCNI CCNI Set up under the Northern Ireland Court Service No cost or charge involved unless legally represented Will involve initial review of process by CCNI to ensure correct. Can still go to courts if not content. Tribunal panel will have a pool to draw from and include persons with legal background. Entirely independent of the Charity Commission. Tribunal members will be paid in accordance with levels set down by NI Courts Service.

UK & IRELAND REGULATORS FORUM How do we seek consistency in approach? Established October 2006 Membership – CC / OSCR / DSD / Dept. of Community Rural and Gaeltacht Affairs (ROI) Forum for discussion on charity matters between jurisdictions Address issues of consistency & interpretation Black bag collections

CROSS BORDER & ALL ISLAND CHARITIES Cross Bordering Monitoring Group established to consider issues. Need to minimise over administration & reporting. Agree joint monitoring arrangements. Ensure reporting of activities in each jurisdiction. Ministerial meeting to consider all-Ireland charities.

TIMETABLE When is this all going to happen? Sep 08 Royal Assent Mar 09 First Commencement Order Jun 09 Appointment of Commissioners Jun 09 Commission established Sep 09 Consultation on public benefit Sep 09 Second Commencement Order Jan 09 Publication of Public Benefit guidance Apr 10 First new registrations Oct 10 Charitable Incorporated Organisations Apr 11 Public collections Apr 11 First financial returns and reports

Does charities regulation matter and who cares? Public Police Politicians Media You

CONTACTS How to get in touch Seamus Murray tel: 028 90515491 seamus.murray@dsdni.gov.uk Roy Mc Givern tel: 028 90515492 roy.mcgivern@dsdni.gov.uk Vera Mc Cann tel: 028 90515493 vera.mccann@dsdni.gov.uk Anne Killen tel: 028 90515494 anne.killen@dsdni.gov.uk Kevin Kennedy tel: 028 90515490 kevin.kennedy@dsdni.gov.uk Kieran Doyle tel: 028 90515495 kieran.doyle@dsdni.gov.uk Paul Slevin tel: 028 90515490 paul.slevin@dsdni.gov.uk www.charitycommissionni.org admin@charitycommissionni.org Charity Commission for Northern Ireland 4th Floor 24-26 Arthur Street Belfast BT1 4GF