General Scheme of the Charities (Amendment) Bill 2022

This Bill (i.e., draft of a proposed new law) has been created to provide for a number of amendments to the Charities Act 2009. The Act is the principal primary legislation governing the operation of charities in Ireland. The proposed amendments to it are aimed at improving the ability of the Charities Regulator to conduct its statutory functions and increasing public trust and confidence in the not-for-profit sector.

A number of organisations operating in the sector made commentaries and statements about the Bill on its publication. Earlier this summer, The Wheel (Ireland’s national association of community and voluntary organisations, charities and social enterprises) held a joint briefing on the Bill in association with the Charities Institute Ireland (CII). The briefing, held on Zoom, was well-attended by representatives from a very wide range of charities.

The Wheel and CII (with legal input from law firm Mason, Hayes & Curran LLP) have since made a collaborative submission to the Joint Committee on Social Protection, Community and Rural Development and the Islands, about the Bill. They also requested an opportunity to appear before the Committee to supply more information on the key issues at stake and to make suggestions to ensure the best outcome in the public interest.

This submission was made because while the Bill contains elements that The Wheel, CII and many others welcome and have sought for some time, such as the alignment with the Companies Act 2014 for financial reporting, and the inclusion of the advancement of human rights as a charitable purpose, it also contains proposed changes which they are concerned about, and which they do not believe are positive developments.

These concerns relate particularly to a proposed extension of the powers of the Charities Regulator, and a perceived increase in the responsibilities of trustees. The submission also expresses a worry that the current approach to regulation of the charity sector is becoming too adversarial, and that the provisions in the Bill will discourage volunteers from serving as charity trustees, thus depriving wider society of an immeasurable benefit. It recommends a more collegial and supportive approach – one that is based on high levels of engagement between charities and the Charities Regulator.

A copy of the General Scheme of the Charities (Amendment) Bill 2022 may be downloaded from the Gov.ie website, and the not-for-profit sector will be watching future developments with interest.