The Government is planning to establish an independent statutory body to regulate charities and subject fundraising to greater financial scrutiny.
Under the new measures, charities will have to publish details of how much of their donations go directly to charity, while fund-raisers may require permits from the Garda for street collections.
In cases of fraud or misconduct, the new body would also be able to prosecute charities or forward a file to the Director of Public Prosecutions where an indictable offence had been committed.
The details of the plans, discussed at last week's Cabinet meeting, are contained in a discussion document on regulatory reform of the charitable sector.
Official figures show there are more than 5,000 charities with tax relief status which receive hundreds of millions of euro each year. However, there is no body which maintains a complete register of charities, and there is no obligation for charities not registered as companies to provide accounts to any supervisory body.
The Minister of State at the Department of Community, Rural and Gaeltacht Affairs, Mr Noel Ahern, said a Charities Regulation Bill with these measures is due to be published next year, the first comprehensive piece of charities legislation in 30 years.
In the meantime, charities have been invited to send in submissions relating to the planned reform of the area.
"We need to regulate the area and ensure the public have confidence in the area," Mr Ahern said. "We have gone a long way from the days of just collecting with a bucket.
"While charities do great work, there is a need for a transparent system and for fundraising levels to be known and reported. There isn't any data like that."
Caradas, the Irish term for an alliance, has been proposed as the new name for the regulatory body, which would be accountable to the Oireachtas. The agency will either be linked to an existing body, such as a Government Department, or will operate separately. It is proposed that the body would be responsible for compiling, publishing and maintaining a register of charities. All registered charities would be obliged to file annual returns to it.
The requirements on charities to comply with the new regime would vary, on the basis that charities differ enormously in their size, organisational capacity and funding base.
The regulatory body would also have the option of alternative sanctions such as "naming and shaming," or financial penalties for charities which fail to meet their obligations.
The legislation will also address issues such as the need for permits for collecting money. At present, there is no requirement for charities to seek permission to collect money or sell tokens, such as flowers or miniature toys.
In the area of governance, the legislation will provide for the establishment of a clear outline of the roles and responsibilities of trustees, honorary officers, board members and executive staff.
Mr Ahern said the planned measures were supported by all the major charities. "No one is fighting this, so to speak. Given the scale of some charities, it is inevitable that there should be control and regulation," he said.
"We hope that all charities and interest groups that have a view on this will make a submission to us as part of our consultation process."
