Red tape is something that arts organisations in the not-for-profit sector tend to complain bitterly about.
Usually their ire is targeted firmly at funding bodies, whose demands for proposals, applications and evaluations are often (mis)construed as a tactic for deterring the faint-hearted from asking for money in the first place. But as anyone who has ever come up against the requirements of charity law will be well aware, the processes and procedures for becoming a charity, merging two charities, engaging in any activity at all that might not be deemed strictly charitable, or simply ensuring that accounting and other rules laid down for running a charity are strictly adhered to, are equally the stuff of nightmares. The problems were exemplified at Salisbury Festival (ArtsProfessional issue 7 p3) which was investigated by the Charity Commission for potentially having breached the rules relating to the application of charity funds to the support of a trading company. The Commission ultimately found that the trustees had ?acted honestly and reasonably in all circumstances of the case?, but no doubt more than a few hairs turned grey during the process of investigation. So it is with great joy that we hear of proposals to make sweeping changes to charity law (p1) . ?The wait has been worth it!? proclaimed the DSC, which is now addressing the consultation exercise with vigour, to ensure that i?s and t?s of the implementation are properly dotted and crossed. So don?t ignore this one ? have your say. The current law on charitable status dates back to 1601, so you?ll probably have to live a very long time to get another bite at this particular cherry.
Sean Egan, head of legal firm Bates Wells and Braithwaite?s Arts and Media department, will be examining the implications of the proposals in more detail in a forthcoming issue of ArtsProfessional.