Legal & Regulatory
Government 'considering' Hodgson charity law review
Lord Hodgson's recommendations in his long-awaited report, submitted on 16 July have been heralded as 'positive' but, if enacted, could raise issues of public trust and confidence.
Further to our May 2012 story “Charities Act report from Lord Hodgson expected July 2012’[i], the completed review, Trusted and independent: Giving charity back to charities ,[ii] has now been submitted to Minister for Civil Society Nick Hurd and has been broadly welcomed by the main charity umbrella bodies.
- Allowing ‘large’ charities with incomes of over £1m to pay trustees. NCVO’s open letter to Nick Hurd makes the point that this raises a significant risk to public trust and
- Making it easier for charities to invest in social enterprises by scrapping the requirement that charity investments have to maximise profit (note the whole SRI debate on this very point was covered in the Caritas SRI Round Table in September 2010 )
- Increased administrative burdens on charities in the form of a requirement to publish more information about their income and activities. NCVO chief executive Stuart Etherington observes: “"The proposal to introduce fees for registering new charities and filing annual returns is also a step in the wrong direction – in these difficult times it is counterproductive to put more obstacles in the way of charities being created when they are often best placed to address a wide range of societal challenges. It is also wrong to be charging existing charities at a time when they are under huge financial pressure.”