CHARITY REGULATOR FORUM. 4 th JUNE 2008 DEPARTMENT OF COMMUNITY, RURAL AND GAELTACHT AFFAIRS MESPIL ROAD DUBLIN 4

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1 CHARITY REGULATOR FORUM 4 th JUNE 2008 DEPARTMENT OF COMMUNITY, RURAL AND GAELTACHT AFFAIRS MESPIL ROAD DUBLIN 4 List of Attendees Terry Dunne Department of Community, Rural and Gaeltacht Affairs (DCRGA) Anne Delaney Department of Community, Rural and Gaeltacht Affairs (DCRGA) Helen Murphy Department of Community, Rural and Gaeltacht Affairs (DCRGA) Elaine Scanlon Department of Community, Rural and Gaeltacht Affairs (DCRGA) Brian Boland Revenue Commissioners (RC) Jane Ryder Office of the Scottish Charity Regulator (OSCR) Seamus Murray Department for Social Development (DSD) Roy McGivern Department for Social Development (DSD) Vera McCann Department for Social Development (DSD) Rosie Chapman Charity Commission (CC) Jane Hobson Charity Commission (CC) Elaine Povey Her Majesty s Revenue and Customs (HMRC) Welcome, Matters not on Agenda and Updates Terry Dunne welcomed everyone to the first meeting held in Dublin and provided an update on the progress of the Irish Charities Bill, which should be enacted by end The Minutes of the last meeting were agreed. Jane Ryder advised that OSCR were into the second phase of the implementation of their Act. Seamus Murray provided an update on the progress of the N.I. Charities Bill, which passed Consideration Stage and should have Royal Assent by July Roy McGivern advised that DSD hope to advertise public appointments to their Commission by July while also actively seeking a location for the Commission. Rosie Chapman advised that the CC has published its 2 nd survey on Public Trust and Confidence in Charities. The report shows that the public s trust and confidence in charities has increased slightly but significantly since CC are revamping their website to include a new register display which will be more dynamic and interesting.

2 Jane Ryder advised OSCR surveys also confirmed high level of trust and confidence in charities and in OSCR. Jane Hobson advised that most of the Charities Act 2006 has now been implemented. A large group of provisions were dependent on the availability of the new Charity Tribunal which was established in March. In January the CC published overarching guidance on public benefit for all charities. It is now consulting on specialised guidance for particular sub-sectors. One of the key areas of the Act still to be implemented is the Charitable Incorporated Organisation (CIO). The CC together with the Office of the Third Sector will consult on this later this year. The consultation will include draft regulations and draft model governing documents. There is considerable interest in the CIO. Brian Boland explained that in the absence of the Charities Regulatory Authority, public perception mistakenly see the RC as responsible for all aspects of charity regulation when in fact they are only concerned with charitable tax exemption issues. However RC have been working closely with the Department of Finance and DCRGA to ensure a convergence of procedures and to minimise overlap. Jane Ryder added that OSCR have similarly been working with HMRC on the tax exemption issues. The position is that HMRC want all charities to approach OSCR for registration before applying for tax reliefs. If the group is not registerable they may apply to HMRC based on first principles. Elaine Povey confirmed this is consistent with practice in England and Wales AP The topic of CIOs is to be added to the Agenda of the next meeting. The Name of the Forum After a brief discussion in relation to the renaming of the Forum, it was agreed that the Forum should be formally called the Charity Regulators Forum. Transatlantic co-operation Prime Minister s article in the Wall Street Journal Terry Dunne briefly summarised the main points of the article. Jane Hobson advised that the Office of the Third Sector were discussing the implications of the article with UK Charity Regulators and key figures from the sector later this month. Elaine Povey advised that UK tax relief is not available on donations to American charities. However she was aware of a number of American charities which had set up UK branches i.e. established charities in the UK which were registered with the Charity Commission and qualified for tax reliefs. EU Services Directive vs. FATF recommendations

3 The EU Service Directive was briefly discussed in relation to whether or not charities are actually covered by the Services Directive and also if the Charity Regulators may have a role under this directive. Elaine Povey mentioned that HMRC has an interest in anti-fraud measures and asked to be kept informed of developments. Jane Ryder said that the Matrix report indicated the main concern identified is actually financial fraud, rather than terrorism financing. AP-Terry Dunne to circulate information he received from Dept ET&E in relation to the EU service Directive Regulation of EU charities / Information disclosure and sharing Jane Hobson pointed out that the EU is trying to support regulation by encouraging transparency and better regulation among member states. Information sharing and the ability to work across borders will be necessary to counteract terrorism. Terry Dunne advised that DCRGA is looking at the issue of the regulation of foreign charities, which may necessitate some amendments in the Bill. AP All to feed back on developments. Infraction proceedings re donor relief Elaine Povey advised that HMRC and other member states are in the early stages of discussions with each other, and with the Commission, to develop ideas relating to the issue of greater co-ordination of donor tax reliefs across Europe. Member states are sharing information to enable comparisons between different regimes, for example to identify similar definitions of charity and similar regulatory regimes. Brian Boland pointed out that the RC position is much the same as that of HMRC. The definitions of charity across the EU are widely diverging and there should be no imperative for a regulator or revenue body to recognise as charitable a foreign organisation when it would not recognise as charitable in its own jurisdiction. Elaine Povey said it is too soon to predict the outcomes of the discussions between member states; the law is developing as cases come before the ECJ, and each member state will ultimately reach its own conclusion on cross border tax reliefs. Cross border issues, to include CLA Symposium CLA Symposium has been deferred. Terry Dunne stated that the issue of cross-border regulation is a current one in relation to the Bill and that DCRGA have been advised that we can t oblige EU charities to have a place of business in the State.

4 Seamus Murray advised that DSD Minister met with DCRGA Minister and both were extremely committed to cross-border policies. Terry Dunne and Seamus Murray are to liaise on possible all-island approach in relation to the regulation of fundraising by charities through the Codes of Good Practice. AP There is to be a further meeting of the Cross-Border sub-group before autumn Issues arising from International Regulators Forum, New Zealand Brain Boland advised that there had been much discussion regarding the issue of tax reliefs on donations and that New Zealand s online system of charity registration was excellent. Elaine Povey said that unlike the USA and Canada, the UK does not allow donor tax relief for gifts of goods to charities, although there is tax relief for gifts of trading stock. Rosie Chapman advised that CC have decided not to flag on their published register a charity that is being investigated on the basis of presumption of innocence. They will flag, however, where there is an interim manager in place. Seamus Murray said that Departments advise internally where there is an investigation in progress. AP Seamus Murray to distribute papers relating to Forum. GUIDESTAR Seamus Murray advised that Guidestar had shown interest in expanding to N.I. Rosie Chapman advised that CC has a contract to provide Guidestar with electronic data from their register. Guidestar re-interpret the data and sell it to a range of interested parties. Terry Dunne advised that a feasibility study on a Guidestar for Ireland is being undertaken for DCRGA. AP Provide further information in relation to the CC interaction with Guidestar. Date, Location and agenda of Next Meeting It was understood that the next meeting was due to be held in Scotland in late Terry Dunne requested feedback for next meeting regarding circulated Codes of Practice on fundraising. Seamus Murray pointed out that he was aware that research was being undertaken into comparative regulation in UK and Ireland jurisdictions, and

5 that it might be useful to invite the researcher to make a presentation on the issue at the next Forum meeting. Rosie Chapman undertook to provide an update on Public Benefit for the next meeting and also suggested that CC and OSCR give an update on the research priorities.