Charities Act 2009

Legislation in Ireland can be a little like waiting for a bus, it all arrives at the same time. The long awaited Charities Act 2009 is finally starting to become “live”. The Act is intended to ensure transparency and accountability for all Charities. The intentions are good but, success will only be achieved if all involved in the regulation and operations of Charities can regain the trust of the donating public.

The extensive downturn in Christmas 2013 donations of between 20% – 41% experienced by extremely well known and long established charities highlights the importance of ensuring trust is re-established with the public as a matter of urgency. Scandals of the past have and will continue to have an impact on individuals supported by the various Charities in Ireland until the public genuinely believes the commencement of the Act has real and quantifiable benefits for public donations, and recipients of the extraordinary work carried out by so many unsung heroes in the charitable world.

Úna Ní Dhubhghaill was appointed the first Chief Executive of the Charities Regulatory Authority (CRA) on 1^st March, 2014. Personally accountable to the Chief Executive of the Public Accounts Committee she will also be responsible for managing and controlling administration of the CRA.

On 1^st May the Minister for Justice announced the appointment of Conor Woods as Chairperson of the CRA along with 15 other members of the CRA.

Charities, their Directors and their Officers will have to get a handle on the new terminology and reporting mechanisms contained within the Act. They will also have to recognise that personal accountability and public access to information is here to stay, and if anything, will be enhanced in the future. To help get started below is a brief outline of some of the new terms and activities contained within the Act.

Activity Report – all Charities regardless of any documents they may file in the Companies Registration Office will have to submit an Activity Report to the Charity Regulatory Authority. It is likely that including the Activity Report as a note within the Annual Accounts will suffice.

Benefit to the Community – referred to under Charitable Purpose [see below] this phrase covers the advancement of community welfare, environmental sustainability, arts, sciences, protection of natural environment, and integration of disadvantaged.

Charity Regulatory Authority – the CRA is not an individual, and is commonly referred to as either the Authority or Charities Regulator. The Authority will be responsible for maintaining a Register of Charities. The CRA will also have a role in helping Charities comply with legislation, and to investigate those Charities that do not comply.

Constitution – refers to existing Memorandum & Articles of Association of a Charity.

Charitable Purpose – for the first time a Charity must, by law, define its charitable purpose which should fall within the prevention or relief of poverty or economic hardship, advancement of education, religion or any other purpose of benefit to the community.

Charity Appeals Tribunal – the Tribunal is intended to deal with appeal processes against decisions of the Charity Regulatory Authority such as refusal of charitable status.   It will consist of 5 Members appointed by the Minister. All Tribunal proceedings will be conducted in public.

Charity Trustee – refers to Directors or other officers of the Charity.

Chief Executive – as mentioned above Úna Ní Dhubhghaill is the first Chief Executive of the CRA. Personally accountable to the Chief Executive of the Public Accounts Committee she will also be responsible for managing and controlling administration of the Charity Regulatory Authority.  

Establishment Day – the precise date will be determined by the Minister for Justice and is intended to provide a clear and definitive date showing the crossover from existing legislation to the commencement of the Charities Regulatory Authority. The existing role of the Commissioner for Charitable Donations will cease and transfer to the Charities Regulatory Authority on Establishment Day.

Registered Charitable Organisation – is defined as a charitable organisation either registered or deemed to be on the Register.

Register of Charitable Organisations – Charities that existed prior to the commencement of this Act will be deemed to be on the Register. Such charities would before the commencement of the Act have been entitled to tax exemption and have a CHY number. The Register will contain details on where the Charity is registered (in the State, EEA or elsewhere), names of Charity and its Charity Trustees.

The annual registration fee for being on the Register will be based on the gross annual income of a Charity and is likely to range from €10 – €500. An online Register is expected to be in place by middle 2014. Una Ni Dhuhhaill has indicated her intention to contact Charities with an existing CHY number in the Autumn.

There are substantial resources available to Charities as they endeavour to come to terms with the Charities Act and anyone involved in the Charity sector should avail of those resources now. This bus is leaving the Terminal, don’t get left behind!

Board of new Charities Regulatory Authority has been appointed. It’s great to see this progressing. Extract from Press Release by Dept of Justice yesterday below;

“Minister for Justice and Equality, Alan Shatter TD, today (30 April 2014) announced sixteen appointments to the Board of the Charities Regulatory Authority that is to be established later this year under the terms of the 2009 Charities Act.

Minister Shatter said, “I am pleased to announce these appointments, as an important step forward for the new system of charities regulation we are putting in place. This follows the appointment of the Chief Executive of the new Authority in March.”

The Charities Regulatory Authority will be an independent regulator for our charities. It will have powers under the Charities Act to introduce robust yet proportionate measures to improve the accountability and transparency of our charity sector. This is essential to the restoration and maintenance of public trust and confidence in our charities, whose work across many sectors makes such a crucial and highly valued contribution to our economy and society.”

“Through its work, the Authority will also help to ensure that the type of difficulties that have given rise to concerns about charities in the recent past, do not arise in future. I look forward to seeing the results of the important work that will be carried out by the Authority.”

Conor Woods is to be appointed as Chairperson of the new Authority and the following people are to be appointed as ordinary members:

Information on Appointees

Conor Woods – Chairperson

Accountant / Senior Statutory Auditor. Chairperson of Chartered Accountants Ireland Charity Committee. Lecturer on Corporate Governance Charities Act 2009 implementation, Governance Code and Irish Tax Review Guidelines with Arthur Guinness Fund.

Graham Richards: Charity Commissioner. Consultant at Matheson Ormsby Prentice Solicitors with particular expertise in the area of trusts and estates

Ann Fitzgerald: Barrister. Member of Board of Directors Cork Simon Community

Patricia Cronin: Solicitor. Board Member and ViceChair of Transparency International Ireland.

David Brady: Accountant/Senior Consultant/Advisor to the Charity sector. Former Chair of the Charities and Not-for-Profit Special Interest Group of Chartered Accountants Ireland

Patrick Hopkins: Accountant/Company Secretary Enterprise Ireland. Board Member St Vincent de Paul.

Anna Classon: Head of Fundraising RNLI. Institute of Fundraising Member.

Fergus Finlay: Chief Executive, Barnardos.

Cynthia Clampett: CEO Mayo Roscommon Hospice Foundation.

Tom Costello: Programme Executive with The Atlantic Philanthropies.

Senan Turnbull: Chair, Think Ahead Advisory Committee, Irish Hospice Foundation. Member of the Working Group of The Governance Code.

Barbara O’Connell: Former Occupational Therapy Manager. Co-Founder and Chief Executive of Acquired Brain Injury Ireland. Board Member of Disability Federation of Ireland and European Brain Injury Society.

Hugh Maddock: Area Organiser / Fundraiser for Rehabilitation Institute / Rehab Group who has personal experience of disability.

Sandra Chambers: Tax Specialist with particular expertise in the area of establishment and funding of charities.

Katie Cadden: Solicitor with Masters Degree in Public Law. Formerly legal adviser to PRTB.

Noel Wardick: International Programs-Consultant CBM Ireland. Former Head of International Department, Irish Red Cross. Director on the governing boards of Transparency International Ireland and Comhlámh.