A regulatory authority with strong enforcement powers and a register of charities are among major reforms announced in the first changes for 30 years in charities legislation.
Minister of State for Community, Rural and Gaeltacht Affairs Pat Carey introduced the long-awaited Charities Bill 2007, which he said would reform the laws to create a composite regulatory framework. Mr Carey said that "charitable purposes" would be defined for the first time and the Charities Regulatory Authority "will have strong powers of investigation and co-operation with law enforcement, but will also be operating in a supportive manner, giving guidance where necessary".
The Minister told the Dáil that there had been no body "with the specific purpose of supervising the sector or the statutory powers to maintain a register of charitable organisations. As a consequence there has been a dearth of reliable information on the number of active charitable organisations, what their financial worth is or how they spend their funds."
Under the Bill, a purpose will be regarded as charitable "if its aim is the prevention or relief of poverty or economic hardship; the advancement of education; the advancement of religion; or any other purpose that is of benefit to the community".
All charities operating in the State will be required to sign up with the register of charities and the Bill will also require charities to provide an annual report of their activities. The law will also be updated in relation to fundraising, "particularly in relation to collections by way of direct debits and similar non-cash methods". A charity appeals tribunal will also be established and the legislation will be reviewed after five years of operation.
Mr Carey said "the Government is committed to protecting both charitable organisations and the public interest by reforming the law to ensure accountability and to protect against abuse of charitable status and fraud through the Bill".
Fine Gael spokesman Michael Ring said he would be "glad to see that we have regulations, a permit system in place, and that charities will have to be registered at the end of each year regardless of what monies they collect. The general public can check with the authority on how much a particular charity collected, how it was spent and where the money went."
Mr Ring said charities were concerned that the regulator's role should be clear. "Charities are concerned lest the regulator interferes with their day-to-day business, and that should not happen."
Labour spokesman Jack Wall said the legislation should ensure that organisations "will be required to prepare accounts and be registered, thereby ensuring that the ordinary person on the street can see that the money he or she gave was used effectively".
Mr Wall was also concerned that there was no provision in the Bill for spontaneous collections, such as in the case of a house fire or major personal tragedy, and that this should be included.
Mattie McGrath (FF, Tipp South) highlighted that there were "more than 19,000 community and voluntary organisations sustaining our civil society".
