Joe O'Brien (Dublin Fingal, Green Party) | Oireachtas source

I am delighted to present this Bill, which is an essential step to enhance and strengthen the existing framework for regulating charities in Ireland. Our charity sector is an important and valued part of Irish society, playing an integral role in the provision of services to our communities. With just under 11,500 charities on the Charities Register, the work of the regulator is vitally important.

The Bill delivers on a programme for Government commitment to ensure that the Charities Regulator has the necessary powers to carry out its duties and to increase trust and confidence in the management and administration of charities. The Bill is a key step that needs to be implemented in order to allow for the appropriate regulation, particularly financial regulation, of the charity sector.

Throughout this legislative process, my officials and I have engaged actively with the charity sector, to listen and take on board the observations of a wide number of stakeholders. In tandem, the Bill has also gone through a very constructive pre-legislative scrutiny, and I take this opportunity to thank the members of the Joint Oireachtas Committee for Social Protection, Community and Rural Development and the Islands for their engagement on draft proposals.

The approach taken in this Bill reflects this diversity in the scale and complexity of the organisations that make up the charity sector in Ireland. I have sought to address all matters raised, where it has been feasible.

I now turn to the main provisions in the Bill. The Bill is divided into three Parts, with 40 sections in total. Part 1 of the Bill covers sections 1 and 2, and addresses preliminary and general matters. It includes standard provisions relating to the Title, commencement and a definition of the principal Act. Part 2 of the Bill includes sections 3 to 38, inclusive, and provides for a number of amendments to the Charities Act 2009. It is the most substantive Part of the Bill. Part 3 of the Bill contains sections 39 and 40 and provides for amendments to the Charities Act 1961, and the Taxes Consolidation Act 1997 respectively.

Section 3 includes updates to existing definitions as well as the introduction of new definitions, for the purpose of clarity under the Act. Section 4 defines the charitable purposes under existing law and establishes the advancement of human rights as a recognised charitable purpose under Irish law for the first time. A key part of this process will be the introduction of guidelines in relation to this proposed charitable purpose. These guidelines will be developed in consultation with experts in this area, including representatives from the sector.

Provisions in sections 5 and 6 are intended to strengthen the broader regulatory landscape, including enabling the Charities Regulator to enter into additional administrative cooperation

arrangements with other relevant bodies. Section 7 includes a number of provisions that underpin a fair and equitable registration process for organisations seeking charitable status, as well as assisting the Charities Regulator in maintaining accurate and comprehensive information on the Register of Charities. This is of critical importance to build public trust and confidence in the sector.Section 9 will require that charities seek approval from the Charities Regulator in circumstances where they want to change their charitable purpose or change a specified clause. Sections 10 to 14, inclusive, set out in further detail the process involved where the removal of an organisation from the register is proposed.

The Bill expands the grounds under which appeals to the Charity Appeals Tribunal can be made. The tribunal itself adjudicates on appeals against certain decisions of the Charities Regulator and is independent in the performance of its statutory functions.

Provisions in section 17 ensure that charities that are also companies are held to the same set as rules as charities that are associations, removing an existing financial reporting exemption that occurred following the introduction of the Companies Act in 2014. It will also facilitate the introduction of much-needed financial regulations for the sector. These regulations will include a specified format for the submission of annual accounts and reports proportionate to the size of the charity, and an increase in existing thresholds for the preparation of accounts and the requirement for audits. This will not only afford the regulator greater visibility on the accounts of individual charities but will also lessen the administrative burden on these smaller, mainly volunteer-led charities, and ensure that moneys are being utilised in line with the charitable purpose of the organisation.

Our charity trustees play a key role in developing public trust and confidence in the charity sector. Section 22 will provide clarity on the roles and responsibilities of trustees. It is important to emphasise that these are not new or additional duties; they are a statement of the duties to which charity trustees are already subject under common law and they will not result in any additional burden. The codification of duties should, in fact, help guide charity trustees by providing greater clarity as to the nature of the duties that apply to all charity trustees and by providing a point of reference for charity trustees to inform their discussions with each other and with their charity's employees and other volunteers.

Section 30 contains amendments that propose to expand the range of circumstances in which the regulator can impose intermediate sanctions for certain breaches under the Act. In the circumstance where sanctions are warranted, they can provide a more effective and balanced regulatory remedy as an alternative to prosecution.

Section 31 contains a number of additional measures to protect both the assets of the charitable organisation and the trustees who exercise control over it. Both of these measures will serve to protect the interests of the charity itself and those who have worked hard to establish and grow its operations. This section will also ensure that where trustees are appointed by the High Court to assume control of a charitable organisation, they will be afforded indemnity from liability from damages with respect to matters that arose prior to their appointment.

Section 34 clarifies the basis on which an agreement or appointment can be entered into by a charity with a "relevant person". A declaration of such agreements and appointments will be incorporated into their annual reporting requirements to the Charities Regulator. Trustees of the charity will need to satisfy themselves that any such agreement or appointment is in the best interest of the charity and not in contravention of its constitution. It is important to highlight that such agreements and appointments should be considered only in exceptional circumstances.

Section 39 contains an important provision that provides for a charity to make an application to dispose of land to another charity for less than the market value when that charity also has the same charitable purpose. This will allow for the transfer of charity land to other charities better able to continue or re-establish the use of the land for charitable purposes for the benefit of the public.

I emphasise the importance of this Bill. To ensure that our charities continue to thrive, we urgently require an updated legal framework that reflects the reality of operations on the ground. The proposals contained in the Bill will strengthen the regulatory structure that charities operate within and safeguard the future of this valued sector for years to come. I commend the Bill to the House.