Charities Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Charities Bill [HL]

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 1 — Public charitable collections
69

officer of a local authority, or by an occupier of any premises
visited by him in the course of the collection;
(d)
for prohibiting persons under a prescribed age from acting as
collectors, and prohibiting others from causing them so to act.
(4)
Nothing in subsection (2) or (3) prejudices the generality of subsection (1)(a) or
5
(b).
(5)
Regulations under this section may provide that any failure to comply with a
specified provision of the regulations is to be an offence punishable on
summary conviction by a fine not exceeding level 2 on the standard scale.
(6)
Before making regulations under this section the Secretary of State must
10
consult such persons or bodies of persons as he considers appropriate.
64
Offences
(1)
A person commits an offence if, in connection with any charitable appeal, he
displays or uses—
(a)
a prescribed badge or prescribed certificate of authority which is not for
15
the time being held by him for the purposes of the appeal pursuant to
regulations under section 63, or
(b)
any badge or article, or any certificate or other document, so nearly
resembling a prescribed badge or (as the case may be) a prescribed
certificate of authority as to be likely to deceive a member of the public.
20
(2)
A person commits an offence if—
(a)
for the purposes of an application made under section 51 or section 58,
or
(b)
for the purposes of section 49 or section 50,

he knowingly or recklessly furnishes any information which is false or
25
misleading in a material particular.
(3)
A person guilty of an offence under this section is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
(4)
In subsection (1) “prescribed badge” and “prescribed certificate of authority”
mean respectively a badge and a certificate of authority in such form as may be
30
prescribed.
65
Offences by bodies corporate
(1)
Where any offence under this Chapter or any regulations made under it—
(a)
is committed by a body corporate, and
(b)
is proved to have been committed with the consent or connivance of, or
35
to be attributable to any neglect on the part of, any director, manager,
secretary or other similar officer of the body corporate, or any person
who was purporting to act in any such capacity,
he as well as the body corporate shall be guilty of that offence and shall be
liable to be proceeded against and punished accordingly.
40
(2)
In subsection (1) “director”, in relation to a body corporate whose affairs are
managed by its members, means a member of the body corporate.

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 2 — Fund-raising
70

66
Service of documents
(1)
This section applies to any notice required to be served under this Chapter.
(2)
A notice to which this section applies may be served on a person (other than a
body corporate)—
(a)
by delivering it to that person;
5
(b)
by leaving it at his last known address in the United Kingdom; or
(c)
by sending it by post to him at that address.
(3)
A notice to which this section applies may be served on a body corporate by
delivering it or sending it by post—
(a)
to the registered or principal office of the body in the United Kingdom,
10
or
(b)
if it has no such office in the United Kingdom, to any place in the United
Kingdom where it carries on business or conducts its activities (as the
case may be).
(4)
A notice to which this section applies may also be served on a person
15
(including a body corporate) by sending it by post to that person at an address
notified by that person for the purposes of this subsection to the person or
persons by whom it is required to be served.
Chapter 2
Fund-raising
20
67
Statements indicating benefits for charitable institutions and fund-raisers
(1)
Section 60 of the Charities Act 1992 (c. 41) (fund-raisers required to indicate
institutions benefiting and arrangements for remuneration) is amended as
follows.
(2)
In subsection (1) (statements by professional fund-raisers raising money for
25
particular charitable institutions), for paragraph (c) substitute—
“(c)
the method by which the fund-raiser’s remuneration in
connection with the appeal is to be determined and the
notifiable amount of that remuneration.”
(3)
In subsection (2) (statements by professional fund-raisers raising money for
30
charitable purposes etc.), for paragraph (c) substitute—
“(c)
the method by which his remuneration in connection with the
appeal is to be determined and the notifiable amount of that
remuneration.”
(4)
In subsection (3) (statements by commercial participators raising money for
35
particular charitable institutions), for paragraph (c) substitute—
“(c)
the notifiable amount of whichever of the following sums is
applicable in the circumstances—
(i)
the sum representing so much of the consideration
given for goods or services sold or supplied by him as is
40
to be given to or applied for the benefit of the institution
or institutions concerned,

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 2 — Fund-raising
71

(ii)
the sum representing so much of any other proceeds of
a promotional venture undertaken by him as is to be so
given or applied, or
(iii)
the sum of the donations by him in connection with the
sale or supply of any such goods or services which are to
5
be so given or supplied.”
(5)
After subsection (3) insert—
“(3A)
In subsections (1) to (3) a reference to the “notifiable amount” of any
remuneration or other sum is a reference—
(a)
to the actual amount of the remuneration or sum, if that is
10
known at the time when the statement is made; and
(b)
otherwise to the estimated amount of the remuneration or sum,
calculated as accurately as is reasonably possible in the
circumstances.”
68
Statements indicating benefits for charitable institutions and collectors
15
After section 60 of the 1992 Act insert—
“60A
Other persons making appeals required to indicate institutions
benefiting and arrangements for remuneration
(1)
Subsections (1) and (2) of section 60 apply to a person acting for reward
as a collector in respect of a public charitable collection as they apply to
20
a professional fund-raiser.
(2)
But those subsections do not so apply to a person excluded by virtue
of—
(a)
subsection (3) below, or
(b)
section 60B(1) (exclusion of lower-paid collectors).
25
(3)
Those subsections do not so apply to a person if—
(a)
section 60(1) or (2) applies apart from subsection (1) (by virtue
of the exception in section 58(2)(c) for persons treated as
promoters), or
(b)
subsection (4) or (5) applies,
30

in relation to his acting for reward as a collector in respect of the
collection mentioned in subsection (1) above.
(4)
Where a person within subsection (6) solicits money or other property
for the benefit of one or more particular charitable institutions, the
solicitation shall be accompanied by a statement clearly indicating—
35
(a)
the name or names of the institution or institutions for whose
benefit the solicitation is being made;
(b)
if there is more than one such institution, the proportions in
which the institutions are respectively to benefit;
(c)
the fact that he is an officer, employee or trustee of the
40
institution or company mentioned in subsection (6); and
(d)
the fact that he is receiving remuneration as an officer,
employee or trustee or (as the case may be) for acting as a
collector.
(5)
Where a person within subsection (6) solicits money or other property
45
for charitable, benevolent or philanthropic purposes of any description

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 2 — Fund-raising
72

(rather than for the benefit of one or more particular charitable
institutions), the solicitation shall be accompanied by a statement
clearly indicating—
(a)
the fact that he is soliciting money or other property for those
purposes and not for the benefit of any particular charitable
5
institution or institutions;
(b)
the method by which it is to be determined how the proceeds of
the appeal are to be distributed between different charitable
institutions;
(c)
the fact that he is an officer, employee or trustee of the
10
institution or company mentioned in subsection (6); and
(d)
the fact that he is receiving remuneration as an officer,
employee or trustee or (as the case may be) for acting as a
collector.
(6)
A person is within this subsection if—
15
(a)
he is an officer or employee of a charitable institution or a
company connected with any such institution, or a trustee of
any such institution,
(b)
he is acting as a collector in that capacity, and
(c)
he receives remuneration either in his capacity as officer,
20
employee or trustee or for acting as a collector.
(7)
But a person is not within subsection (6) if he is excluded by virtue of
section 60B(4).
(8)
Where any requirement of—
(a)
subsection (1) or (2) of section 60, as it applies by virtue of
25
subsection (1) above, or
(b)
subsection (4) or (5) above,

is not complied with in relation to any solicitation, the collector
concerned shall be guilty of an offence and liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
30
(9)
Section 60(8) and (9) apply in relation to an offence under subsection (8)
above as they apply in relation to an offence under section 60(7).
(10)
In this section—
“the appeal”, in relation to any solicitation by a collector, means
the campaign or other fund-raising venture in the course of
35
which the solicitation is made;
“collector” has the meaning given by section 47(1) of the Charities
Act 2005;
“public charitable collection” has the meaning given by section 45
of that Act.
40
60B
Exclusion of lower-paid collectors from provisions of section 60A
(1)
Section 60(1) and (2) do not apply (by virtue of section 60A(1)) to a
person who is under the earnings limit in subsection (2) below.
(2)
A person is under the earnings limit in this subsection if he does not
receive—
45
(a)
more than—
(i)
£5 per day, or

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 2 — Fund-raising
73

(ii)
£500 per year,

by way of remuneration for acting as a collector in relation to
relevant collections, or
(b)
more than £500 by way of remuneration for acting as a collector
in relation to the collection mentioned in section 60A(1).
5
(3)
In subsection (2) “relevant collections” means public charitable
collections conducted for the benefit of—
(a)
the charitable institution or institutions, or
(b)
the charitable, benevolent or philanthropic purposes,

for whose benefit the collection mentioned in section 60A(1) is
10
conducted.
(4)
A person is not within section 60A(6) if he is under the earnings limit in
subsection (5) below.
(5)
A person is under the earnings limit in this subsection if the
remuneration received by him as mentioned in section 60A(6)(c)—
15
(a)
is not more than—
(i)
£5 per day, or
(ii)
£500 per year, or
(b)
if a lump sum, is not more than £500.
(6)
The Secretary of State may by order amend subsections (2) and (5) by
20
substituting a different sum for any sum for the time being specified
there.”
69
Reserve power to control fund-raising by charitable institutions
After section 64 of the 1992 Act insert—
“64A
Reserve power to control fund-raising by charitable institutions
25
(1)
The Secretary of State may make such regulations as appear to him to
be necessary or desirable for or in connection with regulating charity
fund-raising.
(2)
In this section “charity fund-raising” means activities which are carried
on by—
30
(a)
charitable institutions,
(b)
persons managing charitable institutions, or
(c)
persons or companies connected with such institutions,

and involve soliciting or otherwise procuring funds for the benefit of
such institutions or companies connected with them, or for general
35
charitable, benevolent or philanthropic purposes.

But “activities” does not include primary purpose trading.
(3)
Regulations under this section may, in particular, impose a good
practice requirement on the persons managing charitable institutions in
circumstances where—
40
(a)
those institutions,
(b)
the persons managing them, or
(c)
persons or companies connected with such institutions,

are engaged in charity fund-raising.

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 2 — Fund-raising
74

(4)
A “good practice requirement” is a requirement to take all reasonable
steps to ensure that the fund-raising is carried out in such a way that—
(a)
it does not unreasonably intrude on the privacy of those from
whom funds are being solicited or procured;
(b)
it does not involve the making of unreasonably persistent
5
approaches to persons to donate funds;
(c)
it does not result in undue pressure being placed on persons to
donate funds;
(d)
it does not involve the making of any false or misleading
representation about any of the matters mentioned in
10
subsection (5).
(5)
The matters are—
(a)
the extent or urgency of any need for funds on the part of any
charitable institution or company connected with such an
institution;
15
(b)
any use to which funds donated in response to the fund-raising
are to be put by such an institution or company;
(c)
the activities, achievements or finances of such an institution or
company.
(6)
Regulations under this section may provide that a person who
20
persistently fails, without reasonable excuse, to comply with any
specified requirement of the regulations is to be guilty of an offence and
liable on summary conviction to a fine not exceeding level 2 on the
standard scale.
(7)
For the purposes of this section—
25
(a)
“funds” means money or other property;
(b)
“general charitable, benevolent or philanthropic purposes”
means charitable, benevolent or philanthropic purposes other
than those associated with one or more particular institutions;
(c)
the persons “managing” a charitable institution are the charity
30
trustees or other persons having the general control and
management of the administration of the institution; and
(d)
a person is “connected” with a charitable institution if he is an
employee or agent of—
(i)
the institution,
35
(ii)
the persons managing it, or
(iii)
a company connected with it,

or he is a volunteer acting on behalf of the institution or such a
company.
(8)
In this section “primary purpose trading”, in relation to a charitable
40
institution, means any trade carried on by the institution or a company
connected with it where—
(a)
the trade is carried on in the course of the actual carrying out of
a primary purpose of the institution; or
(b)
the work in connection with the trade is mainly carried out by
45
beneficiaries of the institution.”

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 3 — Financial assistance
75

Chapter 3
Financial assistance
70
Power of Secretary of State to give financial assistance to charitable,
benevolent or philanthropic institutions
(1)
The Secretary of State may give financial assistance to any charitable,
5
benevolent or philanthropic institution in respect of any of the institution’s
activities which directly or indirectly benefit the whole or any part of England
(whether or not they also benefit any other area).
(2)
Financial assistance under subsection (1) may be given in any form and, in
particular, may be given by way of—
10
(a)
grants,
(b)
loans,
(c)
guarantees, or
(d)
incurring expenditure for the benefit of the person assisted.
(3)
Financial assistance under subsection (1) may be given on such terms and
15
conditions as the Secretary of State considers appropriate.
(4)
Those terms and conditions may, in particular, include provision as to—
(a)
the purposes for which the assistance may be used;
(b)
circumstances in which the assistance is to be repaid, or otherwise
made good, to the Secretary of State, and the manner in which that is to
20
be done;
(c)
the making of reports to the Secretary of State regarding the uses to
which the assistance has been put;
(d)
the keeping, and making available for inspection, of accounts and other
records;
25
(e)
the carrying out of examinations by the Comptroller and Auditor
General into the economy, efficiency and effectiveness with which the
assistance has been used;
(f)
the giving by the institution of financial assistance in any form to other
persons on such terms and conditions as the institution or the Secretary
30
of State considers appropriate.
(5)
A person receiving assistance under this section must comply with the terms
and conditions on which it is given, and compliance may be enforced by the
Secretary of State.
(6)
The Secretary of State may make arrangements for—
35
(a)
assistance under subsection (1) to be given, or
(b)
any other of his functions under this section to be exercised,

by some other person.
(7)
Arrangements under subsection (6) may make provision for the functions
concerned to be so exercised—
40
(a)
either wholly or to such extent as may be specified in the arrangements,
and
(b)
either generally or in such cases or circumstances as may be so
specified,