Charity Commission Regulation called into question

News - 05/12/2013

The competence of the Charity Commission has been questioned following a report by spending watchdog The National Audit Office (NAO).

They concluded that the Charity Commission was failing to investigate abuses properly, wasting taxpayers’ money and putting the good name of the charity sector as a whole at risk.

The commission oversees more than 160,000 charities in England and Wales. Its annual budget has decreased by 40% in real terms to £22.7m over the past seven years.

In a separate report, the NAO concluded the Charity Commission should never have allowed The Cup Trust to register as a charity in the first place and was then too slow to act when problems emerged.

The Charity Commission has been criticised for not vetting charities properly prior to registration and then being slow to act once the charity is established and problems appear.

The regulators are concerned that in order to maintain public trust, the Commission needs to be more vigilant and effective, particularly in the most serious cases.  The Cabinet Office have commented that they will now launch a consultation “to address any gaps” in the Commission’s legal authority.

Disclaimer:

Although correct at the time of publication, the contents of this newsletter/blog are intended for general information purposes only and shall not be deemed to be, or constitute, legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Please contact us for the latest legal position.