1. CHARITIES AND CAMPAIGNING Tom Murdoch, Senior Associate Charity and Social Enterprise

2. Lobbying and campaigning Charity law on campaigning – and guidance When/why do you need to register with the Electoral Commission?

3. Charity law The existing law –Purposes vs activities An organisation must be established for charitable purposes only, which are for the public benefit An organisation will not be charitable if its purposes are political (in the opinion of the Commission or the Court) A political purpose is a “purpose directed at furthering the interests of any political party, or securing or opposing a change in the law, policy or decisions either in this country or abroad.”

4. The Commission’s guidance Charity Commission Guidance CC9 –“legitimate and valuable” Campaigning and political activity can be legitimate and valuable activities for charities There may be situations where political activity is the best way to support the charity’s purposes A charity may focus most or all of its resources on political activity for a period Trustees must ensure that this activity is not, and does not become, the reason for the charity’s existence.

5. The Commission’s guidance CC9 continued –Political campaigning and political activities must be undertaken by a charity only in the context of supporting the delivery of its charitable purposes political campaigning, or political activity must not be must not be the continuing and sole activity of the charity

6. The Commission’s guidance CC9 continued –Campaigns about the law Charities can campaign to ensure that existing laws are observed Charities can campaign for a change in the law, policy or decisions where such change would support the charity’s purposes

7. The Commission’s guidance Campaigns and Government Can a charity campaign or carry out political activity to influence government or other bodies? –can seek to influence central or local government or public opinion on issues relating to the charity’s purposes. –this applies both to consideration of new and existing public policy – also at national, regional and local levels

8. The Commission’s guidance Can a charity campaign or carry out political activity to influence government or other bodies? –Government (including the NHS): –can seek to influence central or local government or public opinion on issues relating to the charity’s purposes –can oppose or support Government policy –these principles apply both to consideration of new and existing public policy – also at national, regional and local levels

9. The existing law Can a charity engage with political parties? A charity –may give support to a specific policy which is advocated by a political party –may not give general support to a political party (all parties have a range of policies) –must not give financial support, or support in kind, to a political party –should stress its independence, to supporters and those it is seeking to influence

10. The existing law Campaigns and elections A charity must not support a political party or candidate. may try to influence the policies of political parties (in the interests of its beneficiaries)… …but must not assist any political party to get elected. So, a medical charity could accept (or even seek) invitations from political parties to explain the medical needs of particular groups of patients). But the Commission considers that if a charity were to engage with only one of the major political parties, and did so consistently over time [or in the run up to an election], this could call into question whether the charity was in fact remaining politically neutral.

11. The Commission’s guidance Risk of ‘exploitation’ The Commission considers that a charity –should be alert to the risk that a political party could exploit the charity’s participation in policy discussions for its own benefit rather than that of the charity's beneficiaries. –should manage this risk by being “open and transparent” about any engagement it has with political parties.

12. The NEW guidance Becoming more restrictive? New Guidance Charities Elections and referendums a charity must steer clear of explicitly comparing its views (favourably or otherwise) with political parties or candidates charity must not encourage support for any particular parties or candidates If an employee is engaged in a charity's campaigning activity, and also has personal involvement with a party, they should declare this to their employer

13. The NEW guidance Becoming more restrictive? New Guidance Charities Elections and referendums “Some charities publish a manifesto in order to publicise the issues which they campaign on, and in particular the changes they are calling for on behalf of their beneficiaries…this is acceptable where the charity is trying to persuade the political parties to adopt the policies which it advocates, or is simply trying to raise the public profile of those issues. It is not acceptable where the intention is to influence voter behaviour.”

14. Electoral Commission You are a THIRD PARTY CAMPAIGNER if: You are spending money on a campaign which falls within the definition of CONTROLLED EXPENDITURE; In the course of the campaign you spend money on QUALIFYING EXPENSES that exceeds the relevant limit; and The expenditure occurs in relation to a campaign that is carried out within a QUALIFYING PERIOD.

15. New Requirements 1.Are you campaigning? 2.Have you spent funds on any qualifying expenses? 3.Have you breached the limit on spending? If the answer to all three questions is “YES” – you have to register with the Electoral Commission!

16. New Requirements CONTROLLED EXPENDITURE (Campaigning) –Expenditure that can: “reasonably be regarded as intended to promote or procure electoral success at any relevant election for— –(i) one or more particular registered parties, –(ii) one or more registered parties who advocate (or do not advocate) particular policies or who otherwise fall within a particular category of such parties, or –(iii) candidates who hold (or do not hold) particular opinions or who advocate (or do not advocate) particular policies or who otherwise fall within a particular category of candidates.” –Note: “In determining whether expenditure can reasonably be regarded as intended to promote or procure electoral success as mentioned in subsection (2)(b), it is immaterial that it can reasonably be regarded as intended to achieve any other purpose as well.”

17. New Requirements Guidance –Purpose test Intention irrelevant Influence voter choice? –Public test Not “committed supporters” –Regular donors are not public –Twitter followers are –...probably!

18. New Requirements The REGULATED PERIOD: –Set period leading up to an election –First one began 19 th September until 7 th May 2015

19. New Requirements QUALIFYING EXPENSES –Set out in the new Part 1 of Schedule 8A of the Political Parties, Elections and Referendums Act 2000 –Includes “production and publication of material which is made available to the public at large, or any section of the public, in whatever form and by whatever means”; and “press conferences or other media events organised by or on behalf of the third party”. –Does not include: Annual conferences/ AGMs

20. New Requirements Relevant Limits: –£20,000 on qualifying expenses for a UK-wide campaign; –Different limits apply if Localised campaign Joint campaign – Upper limit on spending: England: £319,800 Constituency: £9,750

21. New Requirements Once you decide you will be a THIRD PARTY CAMPAIGNER: – Register with the Electoral Commission. –Once registered: Account for expenditure on the campaign; Prepare and file the relevant returns; Do not exceed upper limit on spending; Account for donations that are specifically for the campaign. Remember the rules are designed for those who deliberately campaign on political issues, not those who accidentally do. Check the charity specific guidance at www.electoralcommission.org.uk www.electoralcommission.org.uk

22. Case Studies

23. Questions

24. TOM MURDOCH e: tommurdoch@stoneking.co.uktommurdoch@stoneking.co.uk t: 0207 324 1750