1. REGULATION OF CHARITIES IN NORTHERN IRELAND Seamus Murray Head of Charities Implementation Team Department for Social Development January 2009

2. FACT OR FICTION ‘Law could mute carol singers’ ‘Watchdogs should look at charities’ ‘Jury still out on charity watchdog’ ‘Police may investigate children's charity’ ‘Ulster charities ‘used to launder paramilitary cash’’ ‘Businesses warned on charity scam’ ‘Warning on bogus charity clothing collections’ ‘Council backs call for charity commission’ Sources:Belfast Telegraph, Newsletter, Third Sector

3. FOCUS Why do we need regulation? Why do we need regulation? What has changed in the world? What has changed in the world? Who is regulation for? Who is regulation for? What is regulation? What is regulation? What is happening in Northern Ireland & elsewhere? What is happening in Northern Ireland & elsewhere?

4. WHAT HAS CHANGED?  Greater public awareness  Greater sense of probity in the sector  Governance and accountability  Devolution & RPA  Crime prevention  Modernisation of legislation & housekeeping

5. Income £290 million 5,700 employees Income £467 million 3,800 employees Student’s Union Income £291,000 European Society of Regional Anaesthesia and Pain Therapy Income £1,744 Income £924,00 Queen’s Students Union Income £2.6 million Scottish Junior Chess Association Educational Trust Income £1,000

6. CHARITIES SECTOR IN NI What does it look like? Relatively large voluntary and community sector compared to England, Scotland and Wales. Number of charities 5500-6500-9000? Total annual income approx. £657m Total expenditure £640m Total assets £750m Total workforce 29,168 (State of the Sector III 2002 NICVA)

7. CHARITIES ACT (Northern Ireland) 2008 What will it do ?  Charities Commission for Northern Ireland  12 headings plus2 NI definitions  Charity Test  Fully inclusive compulsory charities register  167 Charities  All charities to make annual returns financial and performance  New regulation of Public Charitable Collections  Charitable Incorporated Organisation  Trustee indemnity insurance  Deregulation  Charity Tribunal

8. CHARITY COMMISSION FOR NORTHERN IRELAND CCNI What is its role? Public confidence objective Public confidence objective Public benefit objective Public benefit objective Compliance objective Compliance objective Charitable resources objective Charitable resources objective Accountability objective Accountability objective Trust – Confidence - Awareness - Understanding - Effectiveness

9. STRUCTURE OF CCNI Chief Commissioner Deputy Chief Commissioner Commissioner Chief Executive Head of Registration & Compliance Head of Investigation & Enforcement Head of Finance & Administration CommissionerCommissioner (legal)

10. CHARITY ACCOUNTS £100k to £500k Are you a company and balance sheet more than £2.8 m? £500k or more £100k or less Yes Prepare fully accrued accounts as per clause 65 (3) Prepare fully accrued audited accounts as per clause 65 (2) No Does your constitution Say you should produce accrued accounts or have your trustees decided that you should? Yes No Prepare receipts & payments accounts with statement of assets & liabilities as per 64 (3) Accounts signed off by independent examiner Accounts signed off by auditor Accounts signed off by independent person Return made to Charity Commission for Northern Ireland Are you a company? Yes No

11. PUBLIC BENEFIT Established for charitable purposes ONLY Established for charitable purposes ONLY Fall within one of 12 headings Fall within one of 12 headingsAND Is for the public benefit Is for the public benefit Not party political Not party political No presumption of public benefit No presumption of public benefit Public benefit test Public benefit test Benefit gained or likely to be gained by members Benefit gained or likely to be gained by members Detriment incurred or likely to be incurred compared with the benefit gained or likely to be gained Detriment incurred or likely to be incurred compared with the benefit gained or likely to be gained Whether any condition, charge or fee is unduly restrictive Whether any condition, charge or fee is unduly restrictive CCNI must issue guidance CCNI must issue guidance Public consultation Public consultation

12. RELIGION AS A CHARITABLE PURPOSE CLAUSE 2. (2) (C) CLAUSE 2. (2) (C) The advancement of religion CLAUSE 2. (3) CLAUSE 2. (3) In subsection (2)--- (a) in paragraph (c) “religion” includes--- (i)a religion which involves belief in one god or more than one god, and (ii)any analogous philosophical belief (whether or not involving belief in a god);

13. DESIGNATED RELIGIOUS STATUS Recognition of special circumstances Recognition of special circumstances Sought after registration Sought after registration Not automatic, must apply, discretion of CCNI Not automatic, must apply, discretion of CCNI Conditions to be met Conditions to be met Advancement of religion principle purpose Advancement of religion principle purpose Regular holding public worship principle activity Regular holding public worship principle activity Established in N. Ireland least 5 years Established in N. Ireland least 5 years Sound internal governance structures Sound internal governance structures Does not remove reporting or accounting Does not remove reporting or accounting Exemption clause 33-36 Exemption clause 33-36 Powers intervention Powers intervention Suspension, removal & appointment Suspension, removal & appointment Interim manager Interim manager Direction to protect Direction to protect Can be withdrawn Can be withdrawn

14. UK & IRELAND REGULATORS FORUM How do we seek consistency in approach? Established October 2006 Established October 2006 Membership – CC / OSCR / DSD / Dept. of Community Rural and Gaeltacht Affairs (ROI) Membership – CC / OSCR / DSD / Dept. of Community Rural and Gaeltacht Affairs (ROI) Forum for discussion on charity matters between jurisdictions Forum for discussion on charity matters between jurisdictions Address issues of consistency & interpretation Black bag collections Black bag collections

15. CROSS BORDER & ALL ISLAND CHARITIES Cross Bordering Monitoring Group established to consider issues. Cross Bordering Monitoring Group established to consider issues. Need to minimise over administration & reporting. Need to minimise over administration & reporting. Agree joint monitoring arrangements. Agree joint monitoring arrangements. Ensure reporting of activities in each jurisdiction. Ensure reporting of activities in each jurisdiction. Ministerial meeting to consider all-Ireland charities. Ministerial meeting to consider all-Ireland charities.

16. TIMETABLE When is this all going to happen?   Sep 08 Royal Assent   Mar 09Appointment of Commissioners   Apr 09Commencement regulations   Apr 09 Commission established   May 09Consultation on public benefit   Apr 10First new registrations   Oct 10Charitable Incorporated Organisations   Jan 11Public collections   Apr 11First financial returns and reports

17. Does charities regulation matter and who cares? Charities Charities Public Public Police Police Politicians Politicians Media Media You You

18. CONTACTS How to get in touch Seamus Murray tel: 028 90829428 seamus.murray@dsdni.gov.uk Seamus Murray tel: 028 90829428 seamus.murray@dsdni.gov.uk seamus.murray@dsdni.gov.uk Roy Mc Givern tel: 028 90829404 roy.mcgivern@dsdni.gov.uk Roy Mc Givern tel: 028 90829404 roy.mcgivern@dsdni.gov.uk roy.mcgivern@dsdni.gov.uk Vera Mc Cann tel: 028 90829405 vera.mccann@dsdni.gov.uk Vera Mc Cann tel: 028 90829405 vera.mccann@dsdni.gov.uk vera.mccann@dsdni.gov.uk Kieran Doyle tel: 02890829427 kieran.doyle@dsdni.gov.uk Kieran Doyle tel: 02890829427 kieran.doyle@dsdni.gov.uk kieran.doyle@dsdni.gov.uk www.dsdni.gov.uk www.dsdni.gov.uk www.dsdni.gov.uk www.charitycommissionni.org www.charitycommissionni.org www.charitycommissionni.org