We all benefit if charities are well run. The sector could see significant change following the Scottish Government's new proposals on how charities are regulated
Most of us have some experience of the charity sector - as a trustee, donor, volunteer, or someone who has benefitted from their work. There are over 24,000 charities registered in Scotland, ranging from local Brownie packs to Universities.
This means we all have an interest in making sure that charities are well managed and regulated. The Scottish Government has recently announced a review of charity law, given that Scotland’s current charity law has been in place for over 13 years. There’s a public consultation underway on its new proposals, which cover different aspects of regulation such as:
• the powers of the Scottish Charity Regulator (OSCR)
• publication of charities’ annual reports and accounts
• an external register of trustees
• criteria for disqualification of trustees or senior managers
• use of assets by organisations that are no longer charities.
Lindsays’ own view of the proposals is that they are sensible and workable, but are limited in their scope. For example, there is nothing in them to update trustees’ duties and ensure higher standards of governance across the sector.
In addition, the charity test – what qualifies you to be a charity – is not being consulted on. This despite many questions being raised over recent years about what should be required to be a charity.
Considering how much the sector has changed in the past decade – with new issues around safeguarding, fundraising, fraud and financial pressures emerging all the time – this is perhaps a missed opportunity to help the sector retain public trust.
We will respond to the Scottish Government consultation on behalf of our clients.
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