The focus of this report is on the voluntary or not-for-profit organisations which are charities, and other organisations with charitable, philanthropic and benevolent purposes, many of which raise funds from the public including campaign groups. The Draft Bill aims to modernize charity law, allowing many campaigning and social justice groups to attain charitable status. In England and Wales 188,739 charities are registered with the Charity Commission, with a total income of £32 billion raised by the major charities. There are 471 charities, 0.29 per cent of those registered, which represent 45 per cent of the total income, two-thirds of charities actually have an income of £10,000 or less. The Joint Committee sets out 54 recommendations and conclusions, among them are: that the Bill should include a definition of religion; that there should be an additional charitable purpose of promoting religion, racial harmony and advancement of culture; that an account should be taken of the loss of assets to a charity, if it loses charitable status; that an independent review should look at the burden of regulation that charities face; that the Charity Commission should inform the charities the reason for any investigation and that compensation and costs can be awarded against the Commission.
This Bill is the result of a process of review of the law and regulation of charities, publication of Government proposals for consultation, and the report by a Joint Committee on the draft Bill introduced into the 2004-05 session of Parliament. This Bill has 76 clauses and nine schedules, and is divided into four parts. Part 1 deals with the definition of a charity and of charitable purposes. Part 2 covers the regulation of charities, including the establishment and functions of the Charity Commission, and the creation of the Charity Appeal Tribunal, to consider appeals against decisions of the Commission. Fundraising by, and the funding of charities and other benevolent or philanthropic organizations, is the subject of Part 3. Part 4 contains miscellaneous provisions.
The first part of this draft Bill covers the meaning of charity and charitable purposes. The second part looks at the regulation of charities. It includes the topics of: the Charity Commission; the Charity Appeal Tribunal; registration of charities; the application of property cy-prás; assistance and supervision of charities by court and commission; audit of accounts; charitable organisations; powers to spend capital and mergers. The third part looks at funding.
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