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Proposals for new charity law
24/09/2003
Charity legislation in Scotland is set
to be radically altered, leading to tighter control over
the operation of charities, it was announced today.
In a statement to Parliament this
afternoon, Communities Minister Margaret Curran announced
proposals which would form the basis of a draft Charity
(Scotland) Bill to be published in Spring 2004.
Ms Curran also announced the
appointment of the head of the Office of the Scottish
Charities Regulator (OSCR).
Jane Ryder, currently Director of the
Scottish Museums Council, is to be seconded to the new
agency which will pave the way for a statutory regulator to
take up its full powers following legislation.
Addressing Parliament this afternoon,
Ms Curran said:
"I have earlier emphasised the
Executive's commitment to introducing a more effective
regulatory regime for charities, including our intention to
introduce new legislation.
I am pleased now to announce that we will
bring forward a draft bill for consultation next
Spring.
"Our proposals will set out a Scottish
definition of charity based on the principle of public
benefit which is compatible with the definition being
adopted by the UK Government.
"It will turn the Regulator from an
Executive Agency into an independent statutory organisation
with an enhanced range of powers.
"It will empower the regulator to
maintain a statutory register of all charities operating in
Scotland which will be publicly available, and it will set
out improvements in the regulation of fundraising.
These improvements will include improved
transparency in the information about the use of funds
raised by charities.
"And on top of existing powers to
monitor, supervise, investigate and take action in cases of
mismanagement and misconduct, legislation will give OSCR -
as statutory regulator - the power to grant status as a
charity in Scotland."
Referring to the recent case involving
Breast Cancer (Scotland), Ms Curran said:
"Recent events have undermined public
confidence in charities and fundraising and it my intention
to rectify this through the plans I have outlined today.
A statutory regulator, working with
increased powers, will lead to a simpler and more
transparent system of regulation which will, I believe,
secure the confidence of both the public and the charities
themselves.
This change will allow the public to see how
much money a charity raises - either themselves, or from
external fundraisers - and how much this costs.
I expect it to gain widespread support."
Today's proposals take into account
the recommendations from the Scottish Charity Review
Commission -chaired by Jean McFadden - which was set up to
review the law relating to charities in Scotland.
The Minister made a statement to
Parliament on May 28 2003 when she set out her intentions
to reform charity law.
On June 27 2003, Ms Curran announced
that the Office of the Scottish Charities Regulator would
be located
in Dundee.
On July 23 2003, Ms Curran met key
stakeholders from the voluntary sector to listen to their
views on charity legislation.
Jane Ryder will take up post as Chief
Executive of OSCR in December. Ms Ryder is a member of the
Law Society's charity committee and was the Convenor of the
Insurance Committee.
She was a member of the Expert Panel
advising on the Code of Conduct for new MSPs.
She has provided the following quote.
Effective charities are critical to
the development of a vibrant, civilised Scotland which
embraces the principles of social justice and modern
accountability.
I am therefore delighted that the Scottish
Executive has committed to legislation and allocated
significant resources to the long awaited reform of charity
law.
I am privileged to play a part in the
process.
"We will be building on the valuable
work already undertaken by the McFadden Commission, the
Executive Advisory Forum, SCVO and others.
I very much look forward to working with all
our stakeholders to deliver a new agency which is
transparent, effective, consistently fair and
proportionate, accountable in the widest sense and which
meets the high aspirations of government, the public and
users alike."