By Moira Protani, Partner, Wilsons Solicitors LLP
The Charity Commission’s ability to regulate the charitable sector effectively has come under close scrutiny in recent months.
Firstly, it was criticised by the House of Commons Public Accounts Committee for not taking decisive action against the Cup Trust - The Committee concluded that this charity had been formed for tax avoidance reasons and that the Commission’s approach to regulation and enforcement lacked rigour. It has recommended that the Comptroller and Auditor General undertakes a review of the Commission’s approach to regulation, including making arrangements for sharing information with HMRC. For further information and commentary on the Cup Trust please click on this link: http://www.wilsonslaw.com/news/select-committee-publishes-balanced-report-on-the-charity-commission/.
Secondly, the Commission has been the subject of a Parliamentary report focusing on its role in the context of a review of the Charities Act 2006 and recommendations for changes in charity law made by Lord Hodgson. In addition, some of Lord Hodgson’s recommendations were considered suitable for law reform and they have been referred to the Law Commission for review.
On some of the controversial issues, the Select Committee made conclusions and recommendations to the Government.