Centre on Philanthropy backs charities list expansion
The Centre on Philanthropy yesterday lent support to a Government plan to expand the definition of a charity.However the organisation also called for consultation to ensure that charitable organisations behave appropriately.A spokeswoman for the Centre said: “Clarifying the definition of a charity is a key element of the legislation and needs to be carefully drafted to ensure that those entities that raise and use public funds do so in the manner approved by the commissioners.”Government announced during the Throne Speech last Friday its intention to amend The Charities Act 1978.The move would see the definition of charitable organisation expanded to include entities that raise funds through private sources, such as trusts and foundations.“Offences will be established for nondisclosure and non-distribution of public funds,” Governor George Fergusson stated. “The charity commissioners will be given the required power to monitor and investigate complaints.”A spokeswoman for the Centre said the group and its members have long been advocating for updates to the legislation.“After many years of waiting for the Act to be updated, we applaud the Government’s intention to address this legislation,” she said.Fifty Centre members submitted comments to government at the end of 2011, based on amendments to the Act proposed at a town-hall meeting earlier that year, she added.“This group was generally supportive of broadening the powers of the commissioners as long as any powers given to the commissioners are clearly understood by members of the sector and that any resulting consequences are defined and managed in a transparent and clearly defined way.”Such amendments could remedy a long-standing issue in which various laws and government policies have differing definitions of charity, the spokeswoman said.“We encourage Government to address this issue so that one definition exists across ministries so that there is no disparity in the way that charities are treated,” she said.“The Centre encourages the Government to seek broad consultation from members of the sector as they review the legislation to ensure that key objectives are accomplished while still allowing critical non-profit to serve the community. The Centre looks forward to assisting with the process of positive change.”