Law Society of Scotland - The Journal Online

One-door regulator
Responding to the Report of the Scottish Charity
Law Review Commission, Justice Minister Jim
Wallace said the changes would provide the “onedoor
regulator that the charity sector had lacked
for years”.
He added that the reforms would benefit
charities across Scotland by providing better
support. It would also give improved protection
for the public from bogus charities.
The main features of the new reforms are:
■ That Scotland should benefit from an
updated definition of charity, consistent
throughout the UK
■ A comprehensive register of Scottish
charities which will contain only those
charities which are active and will have more
information about them
■ A regulator, provisionally entitled the Office
of the Scottish Charities Regulator (OSCR),
embracing the functions of registration,
monitoring and supervision, investigation
support and information – (charitable status
will be granted by a unit within OSCR, run
by the Inland Revenue.)
■ A new reporting and monitoring regime ,
based on annual submission of reports and
accounts but graduated to take account of
different sizes of charities. OSCR will liaise
with other regulators (eg Communities
Scotland) whose remits cover charities to
minimise duplication of effort
■ OSCR will provide comprehensive advice
and guidance relating to regulatory matters
and, working closely with the sector, will
signpost other sources of advice such as
codes of practice.
■ OSCR will encourage and facilitate better
arrangements at local level for public
charitable collections
The Minister said:
“This is a radical strong package of reforms that
will help Scotland’s charities. We will be investing
over £1 million a year in a new Justice Agency, the
Office of the Scottish Charities Regulator.
“The new agency will transform the way charities
are monitored and supported in the public
interest. It will add capacity and cohesion to
regulatory functions which until now have been
fragmented.
“It will give the public greater protection from
bogus charities and and will allow people to
donate with greater confidence.
“It will provide the one-door regulator that the
charity sector has lacked for years. The Executive
looks forward to working with the major
stakeholders, including SCVO and members of the
advisory forum, to put these important
developments in place.
“Some reforms will need legislation and an
opportunity will be sought for this: but it is in the
best interests of charities and the public for us to
press ahead with the package of measures we are
announcing today.”
The Scottish Charity Review Commission
(McFadden) published its report together with
114 recommendations in April 2001.
A national advisory forum, including voluntary
sector organisations, key professionals and the
existing regulatory bodies, was set up to advise
Ministers on the practical aspects of implementing
the recommendations of the McFadden
Commission with a view to deciding on the best
way of proceeding.
The forum’s discussions turned out to be wideranging
and not confined to implementation
details and helped the Executive to understand
the issues involved in the many aspects of charity
regulation.
Responding to the announcement on Charity
Regulation in Scotland by Justice Minister Jim
Journal
Legacies
for charity sector
The creation of a new body to regulate and support charities in Scotland
was announced by Justice Minister Jim Wallace late last year as part of a package of reforms.
Wallace, SCVO’s associate director, Stephen
Maxwell, said:
“SCVO has campaigned for ten years for a
coherent regulatory framework for the voluntary
sector. By accepting the case for charity law
reform, the Executive has moved us closer to that
goal.
“But its statement of intent falls short of
committing to legislation which would deliver a
new definition of charity based on public benefit,
a statutory independent regulator supported by
an accessible appeals procedure, and limit
charitable status only to bodies independent of
government.
“We welcome the announcement today of
practical steps towards a new system and remain
committed to persuading the next Parliament of
the need to enshrine the public benefit definition
of charity in Scots law, and to establish the
regulator independently of political influence.The
Executive has acknowledged that reform will
require legislation and we will be urging that a Bill
encompassing these points be a priority for the
next programme for government.”
Last month Jackie Baillie introduced a members
debate on a motion calling for a Charity Bill in
Scotland.
In her speech she argued that charities are not
supported by the current complicated and
archaic legal framework of charity law, in
particular how the definition of charity does not
fit in with the modern public perception of what
a charity is.
Hugh Henry, deputy social justice minister, hinted
at the possibility of a shift in Executive policy
during the debate. He said: “There might be a
further review of proposals to put the register of
charities on a statutory footing in order to extend
the regulator’s powers, which might include the
power to grant charitable status.”
51 April 2003 Volume 48 No 4