Wide-ranging plans to make Bermuda's 400 charities more accountable and effective were the subject of public debate last night.Around 40 representatives from the Island's fundraising organisations quizzed a panel including Community Development Minister Michael Weeks over the reforms.Mr Weeks detailed 13 proposed amendments to the 33-year-old Charities Act. Among them are a requirement for charities to keep financial records for a minimum of five years. In addition, Charity Commissioners would have the power to monitor and investigate charities and examine the sources and uses of charitable funds. They would be allowed to intervene to restrict charities' transactions where there are concerns, and penalties would be introduced to deal with charities that fail to distribute funds collected from the public.Commissioners would also be able to examine whether charities are relevant to Bermuda, and of public benefit. Government has concerns that there are too many of them, and they overlap in the work they do.Mr Weeks said: “My commitment as the Minister responsible for charities is to ensure that, as you reach out to the public for support, this very same public can feel confident that we are holding you accountable for the funds that you receive and for the way in which you disperse these funds.“This means that there must be sufficient legislation and regulation where accountability is the focus. Simultaneously, we must be mindful not to place an onerous burden of administration on our charitable sector. We must strike the right balance.”The Minister said Government values the input of stakeholders, and opened the forum up for a question-and-answer session.Quizzed about the background to the changes, Senior Policy Analyst Rhonda Woods-Smith noted the number of charities that Bermuda has.“For an Island this size we feel that's far too many, and we have duplication of purposes,” she explained.“Our donors are asking us to tighten up because if we have more than one charity going to the same donor for funds, that becomes a challenge.” She suggested charities may need to consider “getting together” with each other where they are operating for a similar purpose.Ms Woods-Smith also explained that reforms are needed because the Bermuda Monetary Authority requires assurances that funds are not used for money laundering or terrorist financing.Registrar General Marlene Christopher said her office has experienced “major problems” getting charities to file annual reports and has been “operating a babysitting service,” involving numerous reminders.Under the new rules, charities would be offered guidance on how to govern themselves properly.“We want annual reports from you so we know you're meeting your objectives,” explained Ms Christopher.Asked what form the “public benefit test” for charities would take, she said that has not been determined yet.In response to a request for further information about the proposed power for Commissioners to examine the sources and uses of funds, Ms Woods-Smith said the power would not be “used lightly,” and only employed if charities refused to release the information.When one audience member raised a concern that a clampdown on charities with similar aims would be “uncompetitive” and would not encourage them to do their best, she was applauded for her comment.Panel member David Kendall, who was involved in the reform project when it first got underway in 2007, observed that some charities may not be as relevant as they were when they were first set up.“Charities need to move with the times as well,” he cautioned.Charities Commissioner Cummings Zuill offered a different perspective, however.“I am all in favour of the free market economy,” he said. “I think the donors are the regulators here and they need to look at the organisations to which they are giving their money and if there are lots and lots of organisations then the competition is good and I don't think it's up to the Commissioners to direct that.”Stuart Hayward of the Bermuda Environmental and Sustainability Taskforce said he would have preferred to see the proposals in advance in order to be able to comment fully.Mr Weeks said feedback can also be given in writing, to charities@gov.bm and information will be posted on the website www.gov.bm.