Joint Committee on the Draft Charities Bill Written Evidence


DCH 198 Memorandum from Mr Alan Milburn MP

Draft Charities Bill Consultation

24th June 2004 - Darlington

Attendees:
Name Organisation Contact Details
Robert Williamson First Stop Darlington
David BrownLatimer Hinks Solicitors
Sue Harston Beaumont Hill School
Tricia Sharkey Beaumont Hill School
Sharon Littlefair Fairhaven, St Cuthbert's Care
Margaret Harrison Darlington & District Talking Newspaper
*Mohammed Sadiq Islamic Society of Darlington
Jo BennettDarlington Lionesses
Steve RoseDarlington Partnerships
M JebsonBranksome Residents Association
Ray ShawCorporation Road Baptist Church
David GortonDarlington CAB
Sue DavisonCommunity Partnerships Section - Darlington Borough Council
Nigel Sumerling RNIB, Darlington
S FarrellDarlington Bond Scheme
*Chris Close Advocacy
Lesley Compson Growing Older Living in Darlington
Richard Horniman Darlington Borough Council - Economic Regeneration
Jean RobsonGuide Dogs for the Blind
Linda WoodDiabetes UK
Sue StowSt John's (CIC)
Jackie Sawyer Victim Support
Bill ChaytorClowbeck Children's Farm
Ken EvansAssembly of God Pentecostal Church
John LeroyRailway Housing Association
Name Organisation Contact Details
*Alan Hart County Durham Autistic Support Group
Ian RogersCRUSE Bereavement Care - Tees Valley
Derek MillsSt Teresa's Hospice
Cliff EvansDurham Wildlife Trust
Helen MillsDarlington Mind
Alison HardyAll Saints Millennium Centre
Karen Wilkinson Relate
Alan WatsonDarlington Lions Club
David AllenFirthmoor Community Association 21 Pilmoor Green

Darlington DL1 4QJ

Jack BethellAlzheimer's Society 401 North Road

Darlington DL1 3BN

Monica Giggins Diabetes UK26 Saltersgate Road

Darlington DL1 3DX

Mr HareDarlington Housing Association 25 Westbourne Grove

Darlington

Don FishwickArthritis Care 4 Huntershaw Way

Darlington

*Mel Baker Baptist Tabernacle5 Kirkfield Road

Darlington

Charles Johnson Age Concern
Alan Charlton Friends of Darlington Memorial Hospital
Ken WiperED Walker Homes
Marion Pickersgill CRUSE Bereavement Care
Dave Donaldson Hospital Radio
Barbara Wilkes Association of North Eastern Widows
Maureen WoodAssociation of North Eastern Widows
Geoffrey Crute Age Concern
*Barry Birch Gay Advice Darlington

Introductory Comments

Councillor Don Bristow:

Key points:

Two key aspects from the local authority perspective:

  • To produce sustainable voluntary sector community.
  • Division between national organisation organisations and small local groups.

Where are we? What is the public perception?

  • Ongoing discussions re funding and management across the voluntary sector in Darlington.
  • Territorial difficulties between voluntary organisations
  • DBC viewed as patronising and using voluntary sector for its own ends.
  • Public view of voluntary sector as "tin rattlers" on Saturdays.

The depth and variety of work in Darlington not recognised by general public, or community at large.

Key factor was CVS presenting a report, which outlined the involvement of volunteering in the community - 10,000 people involved in community work. It is the largest "employer" in Darlington. It provided a valuable lesson in Common Purpose.

As a result:

Darlington has a Voluntary Sector COMPACT, which will be signed off on 15th July.

Volunteer Awards recently celebrated the work of volunteer teams in Darlington.

Extensive consultation with Voluntary Organisation across the town.

How do we profit from the newfound attention?

Public Value - any public service must be open, accessible, equitable, and accountable and this value is applicable to the voluntary sector also.

Ensuring the delivery of public value with working partnerships, confidence in capability, who does what the best; break away from traditional perceived roles.

Public don't care who does what as long as its done to a high quality standard.

Funding - expenditure to be monitored sensitively. Local Authority involvement in core funding to be streamlined.

Representative Structure which will be acceptable to the entire voluntary sector - difficult to achieve but must be strived for. Major contribution to developing trust in partnerships. Ensuring funding to the right place at the right time.

Improved communications through COMPACT will be the catalyst for future developments. It is DBC's intention to improve its working arrangements with voluntary sector.

Alan Milburn, MP - Chair of the Joint Pre-legislative Scrutiny Committee

Overall aim to put in place a national legislative framework to benefit charities across the board. The draft Bill was published in May 2004 following extensive consultation with the voluntary sector. The draft Bill is placed before the PLSC for further consultation and evidence received to inform any recommended amendments to Government.

Purpose of Consultation:

To hear the views of participants today, concerning the draft Bill and whether they feel it will make life easier for charities.

Key elements to make job easier:

  • Culture changes as to who provides what
  • Level playing field for the whole Sector enabling stability in funding, spend time on key activities and development. Enable organisations to be grounded in local communities.
  • Formalise legal regime for the Sector.

Main provisions in the Draft Bill:

1.  Definition of Charity to be extended to 12 activities - prevention of poverty, advancement of education, religion, health, citizenship/community development, arts/heritage/science, amateur sport, human rights, environmental protection, relief of need, advancement of animal welfare, and any other purposes.

2.  Becoming a charity incorporates a new test of public benefit e.g a sports club may satisfy the charity definition but can it prove its activities are to the public benefit?

3.  Mergers - merging charities will be made easier under the proposals. Endowment income from bequests will be more flexible for charities to spend.

4.  Change of Regulation of Charities: two tier regulation.

Charity Commission will deal with registration

Independent Charity Appeal Tribunal will deal with disputes.

5.  Legal Form - charities will no longer be required to "double" register, once

with the Commission and again with Company House for Company Limited by Guarantee status. A new organisation known as a Charitable Incorporated Organisation will be created.

6.  Fundraising: the Bill proposes to change fundraising arrangements. More regulation of face to face activity e.g direct debits in the street.

Not in the Bill:

7.  How charities are treated in tax law e.g. rate relief

8.  How charities trade? E.g. Oxfam who have two "arms" for activity and trading.

Test is three fold:

Is this bill going to make life easier for local organisations in communities?

What is said in theory, will it stack up in practice?

Is this Bill increase charitable endeavour, increase volunteering, increase public giving to charities?

IS IT GOING TO WORK?

    

        










COMMENTS:

David Brown

Latimer Hinks Solicitors

Advancement of Amateur Sport definition implies physical activity, how will this be dealt with? Who will decide upon definitions e.g. 'fishing, shooting and hunting are sports the rest are games'?

Gordon Pybus

Darlington Association on Disability

Charitable Incorporated Organisations - left to the Secretary of State to set figures?

Will the Secretary of State set requirements for registration and audit of accounts?

Steve Rose

Darlington Partnerships

There are two different functions for charities those, which give money, and those, which provide services. Should the Bill consider the distinction between these two types of charity?

Mohammed Sadiq

Darlington Islamic Society

Do organisations have to re-register to comply with any new Act?

How will the Bill tighten the legislation to combat fraud?

Charles Johnson

Age Concern Darlington

Trading - positive about beneficial trading.

Operationally regulation and inspection is becoming onerous on organisations providing contracted services. Increased staff costs and compliance costs.

Revd Robert Williamson

First Stop Darlington

Need for clear, plain English. Reduced use of jargon - glossary of terms for ease of use.

Norma Town

St Matthews & St Lukes Church

6 key questions:

a.  VAT Charges in relation to smaller charities. Will these be dropped?

b.  Regulation should endeavour to be not too prescriptive. Larger charities should consult more meaningfully and widely where changes are going to affect those they are serving or benefiting.

c.  If, in future, employers are to be asked to contribute to their employees pensions, account should be taken of charities funded by trusts, small charities.

d.  That Charities Aid be retained but that ways and means be found of making it more easily accessible to the public.

e.  That the Charities Commission ensure greater accountability between areas of benefit and the charities concerned with such areas and endeavour to ensure inclusion rather than exclusion.

f.  That trading should not become part of a charity's activities.

Barry Birch

Gay Advice Darlington

Trading - how can we involve trading in the bill in such as way to set limits for certain activities to be included for charities e.g. up to £10,000, £10,000-50,000 and so on.

Charities could encourage local trading to raise funds.

What is trading? A definition is required.


Chris Close

Advocacy

Need for organisations to be open and accountable. Double registration protects charities from failing trading. Need for third option setting thresholds of trading activity. Protection for Trustees is good element of the draft Bill.

Public Benefit will cause problems need for clear definitions otherwise a lot time and money will be wasted in the Courts.

STRAW POLL conducted gave a 50:50 opinion regarding charities trading.

Barbara Wilkes

Association of North Eastern Widows

Need to regulate "professional" fundraisers. Aggressive attitudes and need to be able to verify who they are collecting for.

The limits for registration will need reviewing regularly to ensure that it keeps up with inflation.

Ken Wiper

ED Walker Homes

Trustees Remuneration - will it be more difficult to attract volunteer trustees, if trustees can be paid. What is the thinking behind this?

Monica Giggins

Diabetes UK

Any legislation proposed for limiting expenses costs for charities. Declaring the amount of a donation used for the charitable purposes rather than costs.

Helen Mills

Darlington MIND

Possibility of loans to charities will increase the need to trade. How will this be addressed?

Derek Mills

Darlington Town Mission

OICs - will this be easy way of unincorporated organisations to be corporated and limited by guarantee. Will this protect charities.

Andy Hart

County Durham Autistic Support Group

Positive view of Darlington COMPACT but not of the draft Bill.

Do we have to re-register?

Presentation of Accounts?

Ignores small groups.

Geoffrey Crute

Age Concern Darlington

Trading

- government and local authorities are urging more service delivery through contracts with voluntary organisations.

- is work within bounds of charitable objects.

Fundraising

Need code, which is crosscutting for all to regulate activity.

Mel Baker

Baptist Tabernacle

Affiliate bodies with national headquarters - what will happen to excepted charities covered by national trustee bodies?

Marion Pickersgill

CRUSE Bereavement Care Tees Valley

Duplication of cross charitable aims and purposes. Will the Bill address these issues?

Ken Evans

Assembly of God Pentecostal Church

How do we put new test of public benefit on religious organisations?


 
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Prepared 20 August 2004