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 2 — Fund-raising
71

(i)
the sum representing so much of the consideration
given for goods or services sold or supplied by him as is
to be given to or applied for the benefit of the institution
or institutions concerned,
(ii)
the sum representing so much of any other proceeds of
5
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
be so given or supplied.”
10
(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
known at the time when the statement is made; and
15
(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
After section 60 of the 1992 Act insert—
20
“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
a professional fund-raiser.
25
(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).
(3)
Those subsections do not so apply to a person if—
30
(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,

in relation to his acting for reward as a collector in respect of the
35
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—
(a)
the name or names of the institution or institutions for whose
40
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
institution or company mentioned in subsection (6); and
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Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 2 — Fund-raising
72

(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
for charitable, benevolent or philanthropic purposes of any description
5
(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
10
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
15
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—
20
(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,
25
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
30
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.
35
(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
40
which the solicitation is made;
“collector” has the meaning given by section 47(1) of the Charities
Act 2006;
“public charitable collection” has the meaning given by section 45
of that Act.
45
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.

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

(2)
A person is under the earnings limit in this subsection if he does not
receive—
(a)
more than—
(i)
£5 per day, or
(ii)
£500 per year,
5

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).
(3)
In subsection (2) “relevant collections” means public charitable
10
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
conducted.
15
(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)—
(a)
is not more than—
20
(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
substituting a different sum for any sum for the time being specified
25
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
(1)
The Secretary of State may make such regulations as appear to him to
30
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—
(a)
charitable institutions,
35
(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
charitable, benevolent or philanthropic purposes.
40

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

(b)
the persons managing them, or
(c)
persons or companies connected with such institutions,

are engaged in charity fund-raising.
(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—
5
(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
approaches to persons to donate funds;
(c)
it does not result in undue pressure being placed on persons to
10
donate funds;
(d)
it does not involve the making of any false or misleading
representation about any of the matters mentioned in
subsection (5).
(5)
The matters are—
15
(a)
the extent or urgency of any need for funds on the part of any
charitable institution or company connected with such an
institution;
(b)
any use to which funds donated in response to the fund-raising
are to be put by such an institution or company;
20
(c)
the activities, achievements or finances of such an institution or
company.
(6)
Regulations under this section may provide that a person who
persistently fails, without reasonable excuse, to comply with any
specified requirement of the regulations is to be guilty of an offence and
25
liable on summary conviction to a fine not exceeding level 2 on the
standard scale.
(7)
For the purposes of this section—
(a)
“funds” means money or other property;
(b)
“general charitable, benevolent or philanthropic purposes”
30
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
trustees or other persons having the general control and
management of the administration of the institution; and
35
(d)
a person is “connected” with a charitable institution if he is an
employee or agent of—
(i)
the institution,
(ii)
the persons managing it, or
(iii)
a company connected with it,
40

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
institution, means any trade carried on by the institution or a company
connected with it where—
45
(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
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,

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 3 — Financial assistance
76


but do not prevent the functions concerned from being exercised by the
Secretary of State.
(8)
As soon as possible after 31st March in each year, the Secretary of State must
make a report on the exercise of powers under this section during the period of
12 months ending on that day.
5
(9)
The Secretary of State must lay a copy of the report before each House of
Parliament.
(10)
In this section “charitable, benevolent or philanthropic institution” means—
(a)
a charity, or
(b)
an institution (other than a charity) which is established for charitable,
10
benevolent or philanthropic purposes.
71
Power of National Assembly for Wales to give financial assistance to
charitable, benevolent or philanthropic institutions
(1)
The National Assembly for Wales may give financial assistance to any
charitable, benevolent or philanthropic institution in respect of any of the
15
institution’s activities which directly or indirectly benefit the whole or any part
of Wales (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—
(a)
grants,
20
(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
conditions as the Assembly considers appropriate.
25
(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 Assembly, and the manner in which that is to be
done;
30
(c)
the making of reports to the Assembly regarding the uses to which the
assistance has been put;
(d)
the keeping, and making available for inspection, of accounts and other
records;
(e)
the carrying out of examinations by the Auditor General for Wales into
35
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
Assembly considers appropriate.
40
(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
Assembly.
(6)
The Assembly may make arrangements for—
(a)
assistance under subsection (1) to be given, or
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Charities Bill [HL]
Part 4 — Miscellaneous and general
77

(b)
any other of its 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—
(a)
either wholly or to such extent as may be specified in the arrangements,
5
and
(b)
either generally or in such cases or circumstances as may be so
specified,

but do not prevent the functions concerned from being exercised by the
Assembly.
10
(8)
After 31st March in each year, the Assembly must publish a report on the
exercise of powers under this section during the period of 12 months ending
on that day.
(9)
In this section “charitable, benevolent or philanthropic institution” means—
(a)
a charity, or
15
(b)
an institution (other than a charity) which is established for charitable,
benevolent or philanthropic purposes.
Part 4
Miscellaneous and general
Miscellaneous
20
72
Disclosure of information to and by Northern Ireland regulator
(1)
This section applies if a body (referred to in this section as “the Northern
Ireland regulator”) is established to exercise functions in Northern Ireland
which are similar in nature to the functions exercised in England and Wales by
the Charity Commission.
25
(2)
The Secretary of State may by regulations authorise relevant public authorities
to disclose information to the Northern Ireland regulator for the purpose of
enabling or assisting the Northern Ireland regulator to discharge any of its
functions.
(3)
If the regulations authorise the disclosure of Revenue and Customs
30
information, they must contain provision in relation to that disclosure which
corresponds to the provision made in relation to the disclosure of such
information by section 10(2) to (4) of the 1993 Act (as substituted by paragraph
103of Schedule 8 to this Act).
(4)
In the case of information disclosed to the Northern Ireland regulator pursuant
35
to regulations made under this section, any power of the Northern Ireland
regulator to disclose the information is exercisable subject to any express
restriction subject to which the information was disclosed to the Northern
Ireland regulator.
(5)
Subsection (4) does not apply in relation to Revenue and Customs information
40
disclosed to the Northern Ireland regulator pursuant to regulations made
under this section; but any such information may not be further disclosed
except with the consent of the Commissioners for Her Majesty’s Revenue and
Customs.