Introduction
Winston Churchill once described Russia as a ‘riddle wrapped in a mystery inside an enigma’. I have no doubt that many Church leaders would say the same thing about the charity commission! Too often, the Commission has been seen to be something of an administrative Goliath towering over a tiny David, with that tiny David being a local church or Christian charity. However, I want to attempt to dispel such notions this afternoon, and suggest to you that the Charity Commission and the Church are far from enemies of one another. In a society that needs to see charities as trustworthy, the work of the Charity Commission is vital. In a society that needs to see love in action, the Church is indispensable. The two can work together and each can benefit from the other.
Setting the scene
There is no doubt that a change in the law concerning charities is desperately needed. The current charity law dates all the way back to 1601. In the 21st century, there is a need for clearer guidelines, stronger accountability and better legislation. Given that there are over half a million organisations in the not for profit sector with 569,000 people working in the arena, it is clear that the law needs to change. England and Wales have some 188,739 charities, with an annual main income of around £32 billion pounds.
Legislation and protection, in this case go hand in hand.
The two main areas under consideration for change are:
- Understanding of ’Public Benefit’ – at the moment presumed for the first three charitable purposes of the Charities Act
- Understanding of ‘Exclusively Charitable Purpose’
Exclusively Charitable Purpose: current
As the law stands, there are four charitable purposes within which charities can register – the relief of poverty, the advancement of education and the advancement of religion: - [all of which assume public benefit].
The last charitable purpose is defined currently as ‘other purposes beneficial to the community, the interpretation of which depends on the first three purposes and their intent.
Exclusively Charitable Purposes: some of the proposals
The government is proposing the addition of a number of other ‘exclusively charitable purposes’ – the range of which is vast:
1. The prevention or relief of poverty
2. The advancement of education
3. The advancement of religion
4. The advancement of health
5. The advancement of citisenship or community development
6. The advancement of the arts, heritage or science
7. The advancement of amateur sport
8. The advancement of human rights, conflict resolution or reconciliation
9. The advancement of environmental protection or improvement
10. The relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
11. The advancement of animal welfare
12. Any other purposes recognised as charitable purposes under existing charity law or any purposes analogous to the defined purposes
Public benefit
Currently, as I have already said, the law assumes public benefit in the first three charitable purposes, but not the last. The government is proposing that the assumption of public benefit be removed completely.
Setting the scene
It is in this arena that the Evangelical Alliance has been seeking to provide support, guidance and representation for the many thousands of Christian Charities and Churches that we represent. This work has gone on in the midst of turbulent times for the church, and the voluntary sector in general.
No-one should underestimate the difficulty that rapidly changing legislation and seemingly insurmountable paperwork represents to the hundreds of thousands of ordinary men and women who are trying to give their time to make a difference in the lives of others.
