DCH 307 Age Concern England (Supplementary)
Age Concern England's second submission
to the Joint Committee on the draft Charities Bill
15th July 2004
INTRODUCTION
1 This charity ("ACE") made an earlier
submission to the Joint Committee which is attached to the end
of this second submission for convenience. We wish to add to
our earlier comments on the meaning of "charitable purpose"
in relation to "age" and make some other points.
MEANING OF "CHARITABLE PURPOSE"
2 We would like to suggest some alternatives
to the current wording which we have criticised in our first submission.
2.1 We are not sure why the previous suggestion
of "social and community advancement" (with a non-exclusive
specification of sub-categories) was abandoned. Possibly it was
considered too wide a category. However if the sub-categories
were expressed as exclusive but with the addition of "and
other analogous purposes" it does not seem to us any wider
than the current scope of this category of charitable purpose,
but with more positive terminology consistent with the other "advancement"
purposes.
2.2 We note that "the advancement of citizenship
or community development" already exists so we suggest a
revised sub-clause could read:
"(j) the advancement of social welfare,
comprising the care, support and protection of children and young
people, older people, and disabled people; and other analogous
purposes."
2.3 This leaves out, compared with current sub-clause
(j), the "disadvantages" of ill-health and financial
hardship. However it seems to us that these are covered by "the
prevention and relief of poverty" and "the advancement
of health".
2.4 If it is decided that the wording of sub-clause
(j) is to be reviewed but the suggestion in 2.2 is not acceptable,
we would urge the Committee to recommend that charities with a
particular interest in that wording be consulted.
TRADING AND SPONSORSHIP
3 We have had the benefit of reading submissions
to the committee from other interested parties and note that the
question of whether charities should be able to trade without
restriction continues to be hotly debated. The nature of the
trading activities carried out by trading companies associated
with ACE are such that we consider it prudent to separate those
activities from the charity but we support suggestions that the
relationship between trading companies and their parent charities
could usefully be simplified. This would not necessarily require
amendment to the Charities Bill but would require the co-operation
of the Charity Commission, Inland Revenue and Customs and Excise
and in particular some changes to tax and VAT rules and procedures.
3.1 Some kinds of "trading" as interpreted
by those authorities with an interest in trading are not, in our
view, what the public regards as trading, and cause considerable
confusion and extra work for charities, absorbing funds that could
be spent on charitable activities. We have in mind particularly
sponsorship of charitable activities by commercial organisations.
We would like to see a relaxation of the interpretation of trading
so that sponsorship which is demonstrably for the pursuance of
charitable purposes (for example, sponsorship of a conference
about one of the policies of the charity, or sponsorship of services
which are provided to the beneficiaries of the charity) can be
regarded, if not as a donation (since it is understood that publicity
for the sponsor is a reciprocal benefit), then as a legitimate
payment to the charity as part of its administration and not a
payment that needs to be routed through a trading company.
3.2 We would like to see a general review of
what types of fundraising should be viewed as commercial trading
and what can reasonably be seen as legitimate activities for the
charity to undertake ancillary to its main activities.
CLAUSE 35 - STATEMENTS OF BENEFITS
4 We would question the usefulness of clause
35. We accept that transparency in fundraising activity should
be sought, in the sense of giving the public and other interested
persons (e.g. the press and regulators) as clear an explanation
as possible of how the charity benefits from particular fundraising
activities. However we echo the point made by many other submissions
that fundraising arrangements are often complex and it is often
not easy to make a simple statement. In some cases where ACE
benefits, there are joint venture companies, commission arrangements,
and usually (as required by the trading rules) payments are made
to an associated trading company, so it is not possible to make
a simple statement of how the charity benefits at the time that
the fundraising activity takes place.
4.1 We note that objection has been made to the
looseness of the phrase "in general terms" in the existing
law. We have interpreted this as permitting a statement which
is as helpful to the public as possible without creating a risk
of non-compliance. Codes such as the Advertising Standards Authority's
Charity Promotions code are stricter but are, we believe, impossible
to comply with fully in many cases.
4.2 The replacement of a statement in general
terms by an "actual amount" or an "estimated amount"
(even though this is qualified by a reasonableness requirement)
seems to us to make compliance more difficult and risk many charities
being in technical breach of the law despite being as transparent
as possible.
4.3 We agree that statements should be made
and these should comprise a general statement as to how either
professional fundraisers or commercial participators will benefit
from the arrangement and provide a contact (including a telephone
number for those without internet access) from which full details
of the arrangement can be obtained (subject to commercial confidentiality
where it is reasonable for this to apply). We think that requiring
full details on all publicity would be onerous for the charity
in terms of cost and would not benefit the public as many will
not wish to be burdened with this.
PUBLIC CHARITABLE COLLECTIONS
5 In relation to clauses 37 - 43, we endorse
the submission to the Committee by the Institute of Fundraising
printed on your website as DCH 70.
Bill Prouse
Solicitor and Legal Adviser
Legal Unit
For Age Concern England
15th July 2004
Appendix - First Submission
Age Concern England Submission to the
Joint Committee on the draft Charities Bill
21st June 2004
INTRODUCTION
1 Age Concern England (the National Council on
Ageing) ("ACE") is a registered charity which brings
together Age Concern organisations working at a local level and
100 national bodies, including charities, professional bodies
and representational groups with an interest in older people and
ageing issues. Through our national information line, which receives
285,000 telephone and postal enquiries a year, and the information
and advice services offered by local Age Concern organisations,
we are in day to day contact with older people and their concerns.
2 As an "umbrella" body we are currently
involved in discussions and consultations to ensure that we are
able to reflect the views of other organisations under this umbrella
which may wish us to submit evidence on their behalf. We therefore
expect to follow this submission with a later submission, to be
sent before 15th July, and hope that the Committee
will be able to take that into account.
MEANING OF "CHARITABLE PURPOSE"
3 The main point which we wish to raise in this
submission relates to the wording of clause 2(2)(j) of the Bill
which reads:
"the relief of those in need, by reason of youth,
age, ill-health, disability, financial hardship or other disadvantage."
We regard this as unsatisfactory in relation to charities
for older people for three main reasons:
3.1 It uses the concept of relief of need rather
than emphasising the positive in terms of advancement. Of the
11 purposes listed at clause 2(2)(a)-(k), only this one and (a)
- the prevention and relief of poverty - use the word "relief".
All the others start "the advancement of …"
In relation to poverty, the introduction for the first time of
"prevention" is a widening; much of the work Age Concern
does is preventive.
The definition suggested in the earlier Review Private
Action, Public Benefit was
"Social and community advancement" which
had a footnote "including the care, support and protection
of the aged, people with a disability, children and young people".
We do not know why this was felt to be unsatisfactory, although
Age Concerns generally dislike the term "the aged",
regarding it as sounding somewhat old-fashioned and impersonal,
and prefer the term "older people".
3.2 "Age" unlike the other items in
the list in (j) is something that everyone has. Therefore we do
not think it makes sense to talk about those in need by reason
of age unless what is meant is old age. Otherwise, like age discrimination
legislation, it would be age-neutral and would not refer specifically
to charities for older people.
3.3 Even if by "age" is understood
"old age", it is placed in a list where, grammatically,
it is, along with "youth", regarded as a "disadvantage".
Most people would not regard youth as a disadvantage; some might
regard old age as a disadvantage but Age Concern would not accept
that old age (or being an older person) is, in itself, a disadvantage.
This could encourage age discrimination. In any case it is not
clear what is meant by a "disadvantage" - this could
be very wide (is it a disadvantage to be left-handed in a predominantly
right-handed world ?). Presumably what is meant is a significant
disadvantage in line with the others listed (apart from "youth")
but this reinforces the problem of the list including "age".
We note that in relation to ill-health, there is also listed
separately at (d) "the advancement of health". This
is the positive counterpart to relieving or preventing ill-health,
and similarly Age Concern often wishes to emphasise the positive
value of support for older people as well as helping those who
are frail and vulnerable.
CONCLUSION
4 As mentioned above we expect to make a further
submission before 15th July and this may include further
comments on the points made at 3 above, including a suggested
re-wording, as well as points arising from other clauses of the
Bill.
Bill Prouse
Solicitor and Legal Adviser
Legal Unit
For Age Concern England
21st June 2004
| 
