Joint Committee on the Draft Charities Bill Written Evidence


DCH 100 Henry Broadbent

In the summer last year the Government published the outcome of its consultation surrounding its proposed reforms to the legal framework, which has defined and regulated charitable organizations since an Elizabethan statute of 1601. The Prime Minister was concerned that the law and regulation in this area was in certain respects outdated or obstructive. In the forword to Charities and Not-for-Profits : A Modern Legal Framework (CNfP) David Blunkett expresses his gratitude to the 1,100 oraganisations who submitted their views concerning the reform proposals outlined in the Strategy Unit's preliminary consultation document Private Action, Public Benefit. In true democratic tradition by doing so, he says, 'they have helped to inform our actions'.

There has been much discussion since the publication of CNfP on the few reforms which respondents rejected as being impractical or unworkable, such as the proposal to allow all trading activity to be conducted within the charitable trust circumventing the need for a wholly owned trading subsidiary. There has been very little discussion conversely on proposals which respondents rejected but which, in apparent defiance of democratic principles, were nevertheless endorsed in CNfP and subsequently enshrined in the draft provisions of the Charities Bill shortly to be scrutinized by an appointed parliamentary committee. The following attempts to address this omission and will hopefully ferment further debate and discussion before the draft bill is eventually enacted at the earliest in early to mid 2005.

CNfP says that religious organizations roundly opposed the proposal to remove the existing legal presumption that they provide benefits to the public. The law currently presumes that, unless there is evidence suggesting otherwise, religious organizations exist by default for the public benefit and, therefore, are charitable. In spite of the negative response from organizations potentially effected by this suggested reform the Government, in an unsubtle sleight of hand, concludes in CNfP that 'the presumption of public benefit for charities for the advancement of religion should be removed' (3.18).

In Germany the equivalent sector is stratified into three divisions each with its own structure of accountability :

1. Public sector organizations supervised by government;

2. Organisations promoting religion overseen by church hierarchies and

3. Organisations independent of both government and church hierarchies

NCVO's Charity Law Advisory Group reported early in 2001 in their consultation document on charity law reform For the Public Benefit that many regarded religious organizations as 'a category apart' (3.4.3) from other charitable bodies. On the basis of this they concluded that there was a need 'to more clearly distinguish organizations promoting religion within the broader charity category'. Although suggestions to complicate the classification system were generally resisted, different treatment for religious institutions was considered 'a must'. In an oral evidence session the eminent charity lawyer Christopher McCall QC summed up these ubiquitous feelings as follows :

"….religion is the philosophical mainspring of charity. It has social rather than public benefit, teaching people to distinguish between right and wrong".

So there seems to be a widespread consensus that organizations who pursue religious objectives do not simply deliver benefits to the public, as this has come to be defined through case law, but are of a much deeper and more-encompassing significance to society. And yet the proposed reforms would elevate the public benefit aspect of charitable activity as the ultimate defining measure and the sine qua non of charitable status. It seems to me that the legal presumption, which the Government would like removed, respectfully acknowledges the sensus of the ordinary person that religion 'delivers' a great deal more than the Strategy Unit and the Home Office currently acknowledge.

This added extra is not something, however, which can be readily measured and subsequently evaluated since it involves values and beliefs which are the intangible outcomes of religious experience. These impalpable qualities may or may not be translated into public action or 'good works' registering on our normal radar screens ; it does not mean, however, that they cease to exist nor that they play a vital though hidden role in personal relationships and consequently wider society.

If, in contradistinction to what policy makers and politicians would have us believe, religious charities are not set up primarily as providers of public services but are only involved in these by 'accident', then what do they do that makes them of such interest to the public at large ? In what activities do they engage to precipitate socially beneficial values and beliefs ?

Offering facilities for prayer would be one answer although it is debatable whether entering into an interior conversation with Our Maker constitutes a mode of activity in the usual sense of the word. It is more an exercise in retreat from the habitual cares and concerns of our broken world. The frenetic activity that engages and depletes us in our normal lives is momentarily suspended in the context of a community of prayer. The opportunity to 'be' rather than to 'do' reconstitutes, restores and refreshes so that we go back to our routines and relationships re-invigorated. No one need ever no why we return with a spring in our step or a light in our eye, though most certainly everyone benefits.

The religious experience may convert into visible acts of kindness and generosity that might even correspond with a particular government initiative but the motor driving such activism is not concern with social order and public policy : such exhibition is simply love for others that takes us beyond our natural individuality ordinarily closed upon itself. The person comes to life in these acts of spiritual creativity which are a response to the promptings and urges of divinity. Religious organizations therefore enable and empower persons to break free and overcome the boundaries of mutual exclusion that define us over and against each other in our relationships.

There are therefore two options available to the framers of the final version of the Charities Bill : either preserve the legal presumption that religious organizations provide social and public benefits, in recognition of the unique contribution they make to national life, or set up a separate legal entity for such bodies which provides for the fact that they do more than just deliver public or welfare services. If the draft provision removing the presumption is finally enacted this will have monumental if not disastrous consequences for religious groups. As the response submitted on behalf of the Catholic Church in England and Wales puts it in a discussion of the proposed additional reporting requirements for general charities:

'If somebody's life is quietly but totally converted are we likely to know, and even if we did would we chalk this up on our success measure yardstick ?'

If these reforms are to be truly democratic and not part of some wider government programme then the provisions of the revised Charities Bill have to enshrine the common sensus concerning religious bodies. Anything less will be an affront to civilized values.


 
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