Reforming charities in Northern Ireland

Many policy changes are taking place that will have a huge impact on the voluntary and community sector - and here's another one. The Department for Social Development is consulting on charity law and administration in Northern Ireland.

The main recommendations are that all charities operating in Northern Ireland should have to register and that the process should be in the hands of a new statutory Northern Ireland Charity Commission.

To be registered, a charity must serve one of the 14 stated charitable purposes, such as the prevention or relief of poverty, the advancement of education, health or environmental protection or the promotion of peace and good community relations.

It must also pass a public benefit charity test. Part one of the test is that the charity should serve only charitable purposes and part two is that it provides public benefit in Northern Ireland or elsewhere. It does not meet the test if its constitution allows it to distribute any of its property for a purpose which is not charitable or if one of its purposes is to advance a political party.

The issue of public benefit has been controversial in England, where there are many exclusive private schools. They advance education but only to the minority who can afford high fees.

NICVA broadly supports the reforms as promoting transparency, public confidence and accountability and helping to guard against fraudulent activity.

A representative of the Department told a recent consultation meeting that one of the drivers behind the reforms is public reaction to 'chuggers', charity street collectors.

"In the context of crime prevention there is greater awareness in government generally and the PSNI and Inland Revenue and interest in what is happening in the charity sector," he added - a veiled reference to anecdotal evidence of money laundering.