Session 2010 - 12
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Charities Bill [HL]


Charities Bill [HL]
Part 2 — The Charity Commission and the Official Custodian for Charities

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Charitable purposes

In the rest of this Act, “charitable purposes” means, except in so far as the

context otherwise requires, purposes which are exclusively charitable

purposes (as defined by section 2(1)).

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Directions as to what is (or is not) a separate charity

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(1)   

The Commission (see section 13) may direct that for all or any of the purposes

of this Act an institution established for any special purposes of or in

connection with a charity (being charitable purposes) is to be treated—

(a)   

as forming part of that charity, or

(b)   

as forming a distinct charity.

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(2)   

The Commission may direct that for all or any of the purposes of this Act two

or more charities having the same charity trustees are to be treated as a single

charity.

Part 2

The Charity Commission and the Official Custodian for Charities

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The Commission

13      

The Charity Commission

(1)   

There continues to be a body corporate known as the Charity Commission for

England and Wales (in this Act referred to as “the Commission”).

(2)   

In Welsh the Commission is known as “Comisiwn Elusennau Cymru a Lloegr”.

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(3)   

The functions of the Commission are performed on behalf of the Crown.

(4)   

In the exercise of its functions the Commission is not subject to the direction or

control of any Minister of the Crown or of another government department.

(5)   

But subsection (4) does not affect—

(a)   

any provision made by or under any enactment;

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(b)   

any administrative controls exercised over the Commission’s

expenditure by the Treasury.

(6)   

Schedule 1 contains provisions relating to the Commission.

14      

The Commission’s objectives

The Commission has the following objectives—

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1.

The public confidence objective

 
  

The public confidence objective is to increase public trust and

 
  

confidence in charities.

 
 

2.

The public benefit objective

 
  

The public benefit objective is to promote awareness and

 

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understanding of the operation of the public benefit requirement.

 
 
 

Charities Bill [HL]
Part 2 — The Charity Commission and the Official Custodian for Charities

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3.

The compliance objective

 
  

The compliance objective is to promote compliance by charity trustees

 
  

with their legal obligations in exercising control and management of

 
  

the administration of their charities.

 
 

4.

The charitable resources objective

 

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The charitable resources objective is to promote the effective use of

 
  

charitable resources.

 
 

5.

The accountability objective

 
  

The accountability objective is to enhance the accountability of charities

 
  

to donors, beneficiaries and the general public.

 

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15      

The Commission’s general functions

(1)   

The Commission has the following general functions—

 

1.

Determining whether institutions are or are not charities.

 
 

2.

Encouraging and facilitating the better administration of charities.

 
 

3.

Identifying and investigating apparent misconduct or mismanagement

 

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in the administration of charities and taking remedial or protective

 
  

action in connection with misconduct or mismanagement in the

 
  

administration of charities.

 
 

4.

Determining whether public collections certificates should be issued,

 
  

and remain in force, in respect of public charitable collections.

 

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5.

Obtaining, evaluating and disseminating information in connection

 
  

with the performance of any of the Commission’s functions or meeting

 
  

any of its objectives.

 
 

6.

Giving information or advice, or making proposals, to any Minister of

 
  

the Crown on matters relating to any of the Commission’s functions or

 

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meeting any of its objectives.

 

(2)   

The Commission may, in connection with its second general function, give

such advice or guidance with respect to the administration of charities as it

considers appropriate.

(3)   

Any advice or guidance so given may relate to—

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(a)   

charities generally,

(b)   

any class of charities, or

(c)   

any particular charity,

   

and may take such form, and be given in such manner, as the Commission

considers appropriate.

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(4)   

The Commission’s fifth general function includes (among other things) the

maintenance of an accurate and up-to-date register of charities under sections

29 (the register) and 34 (removal of charities from register).

 
 

Charities Bill [HL]
Part 2 — The Charity Commission and the Official Custodian for Charities

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(5)   

The Commission’s sixth general function includes (among other things)

complying, so far as is reasonably practicable, with any request made by a

Minister of the Crown for information or advice on any matter relating to any

of its functions.

(6)   

In this section “public charitable collection” and “public collections certificate”

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have the same meaning as in Chapter 1 of Part 3 of the Charities Act 2006.

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The Commission’s general duties

The Commission has the following general duties—

 

1.

So far as is reasonably practicable the Commission must, in performing

 
  

its functions, act in a way—

 

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(a)   

which is compatible with its objectives, and

 
  

(b)   

which it considers most appropriate for the purpose of meeting

 
  

those objectives.

 
 

2.

So far as is reasonably practicable the Commission must, in performing

 
  

its functions, act in a way which is compatible with the encouragement

 

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of—

 
  

(a)   

all forms of charitable giving, and

 
  

(b)   

voluntary participation in charity work.

 
 

3.

In performing its functions the Commission must have regard to the

 
  

need to use its resources in the most efficient, effective and economic

 

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way.

 
 

4.

In performing its functions the Commission must, so far as relevant,

 
  

have regard to the principles of best regulatory practice (including the

 
  

principles under which regulatory activities should be proportionate,

 
  

accountable, consistent, transparent and targeted only at cases in which

 

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action is needed).

 
 

5.

In performing its functions the Commission must, in appropriate cases,

 
  

have regard to the desirability of facilitating innovation by or on behalf

 
  

of charities.

 
 

6.

In managing its affairs the Commission must have regard to such

 

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generally accepted principles of good corporate governance as it is

 
  

reasonable to regard as applicable to it.

 

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Guidance as to operation of public benefit requirement

(1)   

The Commission must issue guidance in pursuance of its public benefit

objective (see paragraph 2 of section 14).

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(2)   

The Commission may from time to time revise any guidance issued under this

section.

(3)   

The Commission must carry out such public and other consultation as it

considers appropriate—

(a)   

before issuing any guidance under this section, or

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(b)   

(unless it considers that it is unnecessary to do so) before revising any

guidance under this section.

 
 

Charities Bill [HL]
Part 2 — The Charity Commission and the Official Custodian for Charities

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(4)   

The Commission must publish any guidance issued or revised under this

section in such manner as it considers appropriate.

(5)   

The charity trustees of a charity must have regard to any such guidance when

exercising any powers or duties to which the guidance is relevant.

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Supply by Commission of copies of documents

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The Commission must, at the request of any person, provide that person with

copies of, or extracts from, any document in the Commission’s possession

which is for the time being open to or available for inspection under any

provision of this Act.

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Fees and other amounts payable to Commission

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(1)   

The Minister may by regulations require the payment to the Commission of

such fees as may be prescribed by the regulations in respect of—

(a)   

the discharge by the Commission of such functions under the

enactments relating to charities as may be so prescribed;

(b)   

the inspection of the register of charities or of other material kept by the

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Commission under those enactments, or the provision of copies of or

extracts from documents so kept.

(2)   

Regulations under this section may—

(a)   

confer, or provide for the conferring of, exemptions from liability to pay

a prescribed fee;

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(b)   

provide for the remission or refunding of a prescribed fee (in whole or

in part) in circumstances prescribed by the regulations.

(3)   

The Commission may impose charges of such amounts as it considers

reasonable in respect of the supply of any publications produced by it.

(4)   

Any fees and other payments received by the Commission by virtue of this

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section are to be paid into the Consolidated Fund.

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Incidental powers

(1)   

The Commission may do anything which is calculated to facilitate, or is

conducive or incidental to, the performance of any of its functions or general

duties.

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(2)   

But nothing in this Act authorises the Commission—

(a)   

to exercise functions corresponding to those of a charity trustee in

relation to a charity, or

(b)   

otherwise to be directly involved in the administration of a charity.

(3)   

Subsection (2) does not affect the operation of section 84 or 85 (power of

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Commission to direct specified action to be taken or to direct application of

charity property).

 
 

 
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Revised 28 June 2011