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Late-filing charities given a warning

Dale Butler

More charities are complying with requirements to provide financial statements compared to last year, according to Government, who is also warning those not complying to get their acts together.

The update on charity reporting came yesterday in Parliament from Minister of Culture and Social Rehabilitation Dale Butler, whose Ministry is responsible for charities.

Currently only 50 charities or 12 percent of the Island's 405 are not in compliance with The Charities Act 1978, which states all registered charities must provide financial statements to the Registrar-General.

In terms of compliant charities, 355 or 88 percent of all registered charities were compliant as of February 12, 2008, compared to 318 or 77 percent in August last year.

Mr. Butler clarified what the term 'compliance' means: "By compliance I mean the submission of a statement of accounts detailing all monies received and expended for charitable purposes to the Registrar-General within six months of the end of each financial year in accordance with The Charities Act 1978, which is currently being revised."

Warning that noncompliant charities face a review and possible revocation, Mr. Butler cautioned: "I strongly encourage those charities that are still noncompliant to get their act together and to make an extra effort to file financial reports with the office of the Registrar-General.

"I also encourage them to take advantage of the advice and assistance available from the Centre of Philanthropy, an organisation that has been working hard to upgrade all charities with best practices."

Of the 50 delinquent charities, only 17 or four percent, are currently delinquent for less than one year, while 33 of the 50 delinquent charities have been so for more than one year.

"Mr. Speaker, this trend is encouraging and shows that there has been an overall increase in the number of registered charities providing financial reports to the office of the Registrar-General," Mr. Butler added.

"In this regard I am pleased to note that the efforts of the Registrar-General to encourage charities to submit timely financial reports are continuing to have a positive response and that progress is being made.

"However, Mr. Speaker, as Minister responsible for charities I intend to push for an even greater level of compliance by registered charities.

"We must strive for 90 percent compliance, 95 percent compliance and eventually Mr. Speaker, 100 percent compliance.

The reason this is so important is that charities handle contributions from the public and as a responsible Government, we must therefore hold charities accountable."

Mr. Butler admitted that to date, Government has not been heavy-handed in dealing with charities but it intends to enforce the law.

And, he said the country is approaching a time when charities that remain noncompliant will have their charitable standing reviewed and possibly revoked, in accordance with the law. "When people give to charitable organisations they expect that the monies they donate will be put to use for which it is intended.

"They expect their favourite charity to obey the law. All charities know that part of their obligation as a registered charity is to report their revenues and expenditures annually to the Registrar-General."