Charities Act update

Further to our recent seminar on changes in the area of Charities Law, we now confirm that the Charities Act 2009 has been signed into law and it currently awaits the making of the necessary commencement orders by the Minister for Community, Rural and Gaeltacht Affairs. It is expected that commencement will occur in several phases.

As explained at our seminar, the Act aims to reform the law relating to charities by improving accountability and providing protection against abuses within this sector. The Act coexists along with the Charities Acts 1961 and 1973 and the Street and Houses to House Collections Act 1962 and together they provide the composite regulatory framework for charities.

The Act dissolves the Commissioners of Charitable Donations and Bequests for Ireland (CCDB) and in its place, it establishes a new regulatory authority – The Charities Regulatory Authority. It is expected that it will take some time before this organisation is equipped to perform its role envisaged in the Act. The Act also imposes quite onerous reporting requirements depending on whether a charity is above or below specified monetary levels in terms of its annual income or expenditure.

Please note that certain amendments have been made to the Charities Bill since our seminar. Some of the important amendments include:

  • Existing charities which are approved by the Revenue Commissioners (i.e. organisations that have been provided with a CHY reference) are deemed to be registered for the purposes of the Act. This will obviate the need to go through the onerous process of applying for registration with the new authority.
  • Facility for non-Irish based charities to register with the Charities Regulatory Authority.
  • Permission for charities to secure indemnity insurance for trustees. The Act does place substantial obligations on trustees of charities.
  • Copies of a charitable company’s annual returns are to be furnished by the Companies Registration Office to the Charities Regulatory Authority. This is also welcomed and would appear to avoid duplication of auditing and reporting responsibilities.