Developments in Charity Law in Ireland

What is Charity Law?

The Charities Act, 2009 (‘the Act’) was introduced to provide for the better regulation of charitable organisations.  It aims to ensure greater accountability, offer protection against abuse of charitable status and fraud and also to enhance public trust and confidence in charities and increase transparency in the sector.

What the Charities Act 2009 does

• Establishes the Charities Regulatory Authority (‘CRA’);
• Decouples “charitable status” and “tax exempt status”;
• Dissolves the Commissioners of Charitable Donations and Bequests;
• Defines charitable purposes;
• Establishes a Register of Charities & mandatory registration;
• Introduces changes in corporate governance and accountability in management;
• Updates the law relating to collections;
• Imposes onus on charities to participate in a proposed non-statutory fundraising regulation regime;
• Articulates wide-ranging duties and responsibilities of Charity Trustees;
• Introduces a range of penalties and criminal offences including offences which may be committed through neglect rather than criminal intent;
• Introduces a range of sanctions in respect of contraventions of the Act;
• Creates a Charity Appeals Tribunal to hear appeals of decisions by the CRA.

What the Act does not do

• Does not alter the role of the Revenue Commissioners
• Does not absolve charities from the rigours of existing Charities Law, Company Law, General Contract Law and the Law of Trusts
• Does not alter the role of regulatory agencies

What is a ‘charity’ for the purpose of the Act

A charitable organisation can be a charitable trust, body corporate, incorporated body or unincorporated body:

• That promotes a charitable purpose only;
• That is required under its constitution to apply all of its property to further that purpose except for money used in its operation and maintenance (for example, payments to staff) and, in the case of religious organisations or communities, money used for the accommodation and care of the members of the organisation or community, and
• None of whose property is payable to the members of that body except in specific circumstances

The Regulator

The Charity Act provides for an integrated system of mandatory registration and proportionate regulation and oversight and supervision of the charities sector in Ireland by a new statutory regulatory authority, the Charities Regulatory Authority (CRA) . The CRA, will for the first time in Ireland, monitor charities from a charity governance perspective as distinct from purely taxation or company law perspectives. The general functions of the CRA are set out in detail in the Act.

Phased roll out of CRA functions

The CRA is currently in its first phase of building a register of charities in Ireland, which will be open to the public for inspection.

Organisations holding a valid CHY charity tax exemption number from the Revenue Commissioners on the 15th of October 2014 are automatically deemed to be registered with the CRA and do not need to apply to the CRA for registration.  The CRA is contacting all such ‘deemed’ charities, inviting them to create an online account with the CRA and to update their details and information for inclusion on the register of charities.

Organisations that did not hold a valid CHY charity tax exemption from the Revenue Commissioners on the 15th October 2014 and wish to operate as a charity, need to apply to the CRA for registration. When such organisations apply to register their charity, the CRA will request certain information about to enable them to assess the application.

Certain categories of organisation are excluded from registering as charities.

P.O’Connor & Son can help your charity or not-for-profit organisation

As a leading law firm (charity law firm) in the West of Ireland with a long and distinguished tradition of providing legal advice and services, we offer the following services:

• Assist navigate the Charities Act, what it means for your organisation and what is required of your organisation for the purpose of the Register of Charities;
• Assist your organisation prepare a property strategy in preparation for regulation and in fulfillment of long standing duties of good stewardship;
• Assist your organisation review its governance and compliance strategy;
• If charitable tax status with the Revenue Commissioners is something that you would like to consider, we are equally happy to assist.

Our skilled solicitors regularly advise voluntary bodies, charities and not-for-profit organisations on various matters from statutory compliance to corporate matters, from property to trust matters, from policy to employment law and litigation matters.

 

 

 

For more information, please contact Patrick O’Connor, Managing Partner, Katie Cadden, solicitor or any member of the P.O’Connor & Son team on 094 9251333, email: law@poconsol.ie or book an appointment online at www.poconsol.ie/appointment.

---

DISCLAIMER

This information is for guidance purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this publication. No liability is accepted by P. O’Connor & Son Solicitors for any action taken in reliance on the information contained herein. Any and all information is subject to change.