News – New calls for charity sector reform

Two separate reports into the charity sector have called for reform to accommodate the changes which will be introduced with the implementation of the Charity Bill, which is currently receiving its third reading in the House of Lords. In its report, ?Better Regulation for Civil Society?, the independent think tank The Better Regulation Task Force comments on the danger of regulation and excessive reporting limiting the ability of voluntary and community organisations to play their role in delivering social agendas. Highlighting the need for a ?level playing field? to be established with the private and public sectors, the report suggests that excessive regulation is preventing the establishment of new charitable trusts, deterring potential trustees and overstretching staff. The Task Force calls on Government to examine the level of bureaucracy involved in securing Criminal Record Bureau Checks and to change VAT law to enable charities to outsource non-core activities. The report also recommends that the Charity Commission should provide greater clarity to trustees about which parts of its advice are legally binding and which are simply best practice suggestions. It also proposes that the Charity Commission should work with other bodies to reduce the number of reports charities need to submit.
In another report last month, the Independent Complaints Reviewer, Jodi Berg, has called for better policing of the charity sector to protect the interests of individuals in their dealings with charities. In her annual report on the workings of the Charity Commission, she says, ?In a society where the distinction between public and voluntary services is becoming blurred and where, to a greater or lesser extent, charities touch all of our lives? there is a strong argument for the provision of an ombudsman for charities, with authority to consider complaints about individual charities and provide redress?. Berg goes on to praise the Commission for improvements to its levels of customer service but also acknowledges that it is still not robust enough in its dealing with complaints. She acknowledges that there is ?a tightrope to walk between not interfering in the administration of a particular charity and the performance of its public duty. In forging a new relationship with the sector and the public, the Charity Commission must find a successful balance between the two.?

Two years ago, the Charity Commission came in for stinging criticism from a House of Commons Select Committee during the preparation of the Charity Bill. The Public Administration Committee reported, ?In taking oral evidence from the Charity Commission, we gained the impression that this was a body ? unlike many others in receipt of public funds ? which was unaccustomed to explaining its workings in public.? Its report voiced a lack of confidence in the Charity Commission and its capacity to cope with new responsibilities under the Charity Bill. Since then, the Charity Commission has launched a number of initiatives to improve its accountability and relationship with the charity sector, including open board meetings and publishing charity accounts. It has also recently appointed public affairs consultants to promote the work of the Commission and to campaign for it to have a greater role in policy making.