Investing in Regulation Infrastructure Key to Success of New Charities Act, Say Charities’ Represent

Charities’ representative bodies Charities Institute Ireland (Cii) and The Wheel have welcomed a new law that aims to enhance transparency, accountability, and public trust in charities, with the proviso that investment is needed. Government today (10 July 2024) passed the Charities (Amendment) Act, 2024 which introduces a series of reforms to charity governance. These changes, if properly resourced, will create a more robust and effective framework for the regulation of charities in Ireland.

The organisations, supported by Mason Hayes and Curran solicitors, made a series of submissions and representations during the legislative process and welcome, in particular, the following changes:

• The introduction of a new charitable purpose, the protection of human rights;
• Refining the definition of “charitable trustee” to exclude company secretaries, unless they are also directors or shadow directors;
• Increasing the maximum threshold for the requirement to submit audited accounts; and
• Clarifications regarding agreements with trustees.

Colette Bennett, Director of Advocacy and Research with The Wheel, expressed strong support for the reforms: “These changes are a welcome step forward in ensuring that charities operate with the highest levels of integrity and transparency, but it must be resourced. Budget 2025 presents an opportunity for Government to invest in the infrastructure of regulation – to support charities of all sizes to comply with their obligations, and to support the Charities Regulator to engage with charities in a timely fashion.”

Áine Myler, CEO of Charities Institute Ireland said, “The regulation of charities has come a long way in the 10 years since the first Charities Act became operational. Charitable organisations have worked hard to comply and keep pace with the growing regulatory environment in which they work. No matter the sector, good governance costs money. Introducing new regulations without providing resources could undermine all the good work to date for many organisations that are already stretched to the limit delivering vital services.” The Wheel and Charities Institute Ireland further highlighted the potential for the new legislation to enhance the credibility and effectiveness of charities, increase public trust, and protect the interests of funders, donors, and the people they serve.

“We look forward to continued engagement with the Charities Regulator and our members as the new legislation is implemented. It is crucial that the government now resource the regulatory infrastructure to support the implementation of the new legislation. This is a matter of public interest,” said Colette Bennett and Áine Myler.