This item was published during the term of a previous administration that ended in April 2007
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Charities Bill introduced to Parliament
16/11/2004
Proposed legislation aimed at increasing public
confidence in Scotland's charities has been introduced to
the Scottish Parliament.
The Charities and Trustee Investment (Scotland) Bill,
published today, seeks to repeal existing charity law
and create a single, robust framework for charity
regulation in Scotland while modernising the regulation of
fundraising activities.
Communities Minister Malcolm Chisholm said:
"This Bill takes forward not only our commitment to
reform charity law but also our on-going support for the
voluntary sector.
"Scotland's charities play an important role in life in
Scotland, delivering important services which are supported
by volunteers and donors.
"With such personal investment, the public rightly
expect to be reassured that the ways in which our charities
operate are effective, transparent and trustworthy. This
Bill seeks to safeguard this.
"We know that there are over 25,000 charities in
Scotland and it's important that there are efficient
mechanisms in place to allow the regulator to investigate
and act against any alleged wrong-doing, to ensure that the
standing of charities as a whole is not affected.
"I have no doubt that the measures contained in this
Bill, such as the publicly available register of all
charities, will help to support charities in the work they
do and strengthen the trust we all place in them."
The Executive published a draft Bill for consultation
earlier this summer following a Partnership Agreement
commitment to reform Scottish Charity Law which takes
forward recommendations from the Scottish Charity Law
Review Commission ('McFadden Review').
New measures contained in the Bill include:
- a new definition of 'charity' which is based on the
principle of public benefit
- enhanced powers for Office of the Scottish Charity
Regulator (OSCR)
- provisions for ensuring firmer regulation of
fundraising activities Under the provisions of the
Bill, OSCR, set up by the Executive last December
(2003), would gain responsibility for granting
charitable status and maintaining a statutory register
of all charities operating in Scotland
OSCR Chief Executive Jane Ryder said:
"OSCR welcomes the introduction of the new Bill and this
opportunity to create a 21st Century framework for
charities in Scotland.
"OSCR is already planning ahead for a seamless
transition to its new role as a statutory regulator.
"Comments and suggestions made in response to
consultation on the draft Bill have been incorporated and I
believe this will help to strengthen the reform of Charity
regulation and legislation in Scotland for the good of the
general public and the charity sector."
In its intention to tighten up the regulation of
charities, the Bill contains provisions for defining the
status of charities.
Any organisation wishing to qualify for charitable
status would need to show that its purposes fall within one
or more the categories set out in the Bill and show that
the charity will provide public benefit.
Scottish Council for Voluntary Organisations Chief
Executive Martin Sime said:
"This Bill will make a big and positive impact on
charity in Scotland. It will underpin public support for
thousands of good causes and will, for the first time,
provide a proper framework for community action - including
a modern definition of charity based on public benefit.
"The Charity Bill marks a high point in a ten year
campaign led by charities themselves to establish a proper
legal and supervisory framework within which many thousands
of volunteers and paid staff now work.
"Good charities campaign and deliver services to many of
Scotland's most disadvantaged citizens. This crucial work
is badly affected by the few bad apples that dent public
confidence.
"We believe that the Charity Bill, when it becomes law,
will drive up standards and root out those who exploit
charity for their own gain."
The charity fundraising sector is currently developing a
system of self-regulation which will run alongside the
provisions contained in the Bill.
Fiona Duncan, speaking for the Institute of Fundraising,
added:
"The Institute intends that self-regulation will build
on public trust in the voluntary sector, enabling donors to
give with confidence. This will complement the regulations
for fundraising set out in the Bill, a Bill which we
welcome.
"Self-regulation will bring charities together, build on
the professionalism and high standards already set for
fundraising within the sector, and provide a common focus
for all fundraising whatever the cause - from hospices and
schools to medical research and the arts - carried out by
volunteers, paid staff and contracted fundraisers."
The membership of the Reference Group to assist with the
development of the Bill included:
- Alison Cameron, Council of Voluntary Service
Fife
- Richard Corden, Home Office
- Martyn Evans, Scottish Consumer Council
- Patrick Ford, Dundee University Charity Law
Research Unit
- Maureen Harrison, Institute of Fundraising
- Mhairi Hearle, Oxfam in Scotland
- Richard Hellewell, Scottish Charity Law Advisory
Forum
- Jane Ryder, Office of the Scottish Charity
Regulator
- Martin Sime, Scottish Council for Voluntary
Organisations
The consultation exercise undertaken on the draft Bill
included a national conference, regional seminars and focus
groups. The consultation document received over 260
responses.