Supplementary memorandum from the National
Association of Councils for Voluntary Service (DCH 332)
Thank you for asking me for further comments
on the draft Charities Bill.
After appearing before the Committee last week
one member, the Earl of Caithness, asked me for NACVS' views on
Clause 5 of the draft Bill.
NACVS believes that the Charity Commission should
be required to undertake reviews of charities to check that they
are working for public benefit. This will inspire more public
confidence in charities and will be generally welcomed by trustees
of CVS and local charities.
We do not think that it is necessary for the
Commission to concern itself with the economic and social impact
of charities. Trustees are responsible for ensuring that charities
use their resources effectively and will seek advice from the
Commission, from CVS and from others in order to achieve this.
Increasingly, funders of charities require them to describe the
"impact" they are having and to report on their "outcomes".
This is not a matter which requires Charity Commission intervention.
Even if intervention was considered necessary there is no reason
to focus in particular on social and economic objectives.
We suggest therefore that the regulatory objectives
set out in clause 5 of the Bill be amended.
I hope this comment is helpful.
July 2004
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