Seanad debates

Tuesday, 25 June 2024

Charities (Amendment) Bill 2023: Second Stage

 

1:00 pm

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

I thank Members for their contributions to this important debate. Our charities sector plays a crucial role in connecting the wider public with opportunities to support and improve communities and society at large. It also plays an integral role in the provision of services to our communities. The purpose of this Bill is to strengthen this valued sector, ensuring greater transparency, clarity and fairness, which will serve to enhance public confidence in the sector and will consolidate the existing legal framework for the Charities Regulator to conduct its statutory functions. Throughout the process, my officials and I have actively engaged with the charities sector to listen and take on board the observations of a wide number of stakeholders.The Bill takes account of the operational experience of the regulator in the years since its establishment in 2014, and the legislation has been revised and strengthened as a result.

I will address a couple matters that were raised. Senator Burke raised the question specifically of GoFundMe, but that is the broader issue of crowdfunding. To clarify the position on that, crowdfunding tends to occur when a person or group seeks donations for an individual person or a specific cause, for example, seeking funds to pay for treatment for a sick child or adult. In most of these cases, the requisite public benefit element of the charity test would not be met and therefore they would not be required to apply to register as a charity. Very often, it is of a private benefit and would not pass the charity test that the regulator has, so it generally does not come in under the scope of this legislation.

If it is a charity running a GoFundMe page, that is a different situation. If it is an individual holding out to be a charity, that is a different situation as well. The Charities Regulator has no role in respect of fundraising by persons or groups that are not charities other than to ensure that such persons or groups do not hold themselves out as charities in contravention of the Act. Where it comes to the attention to the regulator that a person or group is fundraising in contravention of the Charities Act by referring to themselves or holding themselves out as a charity, the regulator will endeavour to make contact with the person or group concerned, along with the fundraising platform, to address the matter. If a group does not hold itself out as a charity, it is essentially private individuals interacting with private individuals online.

Senator McDowell raised a number of questions and issues. The addition of the advancement of human rights as a charitable purpose will allow charitable organisations to apply to be on the register under this specific charitable purpose. When the Senator was speaking, he indicated that it would automatically happen to a large swathe of organisations. That will not be the case. There will be an application process. The introduction of the advancement of human rights as a charitable purpose will require a post-enactment transition period to facilitate the applications of those organisations currently working in the area of human rights that are not registered as charities. Human rights is a concept already recognised and defined on a statutory footing in Ireland under the European Convention on Human Rights Act and, as the Senator referred to indirectly, the Irish Human Rights and Equality Commission Act 2014, respectively. However, Ireland is unusual among common law jurisdictions in not having the advancement of human rights defined as a charitable purpose. By comparison, in England, Wales, Scotland and Northern Ireland respectively all recognise the advancement of human rights within their respective legislation. Notably as well, among the recommendations arising from the Joint Committee on Justice, Defence and Equality report on the review of the Charities Act 2009 was a suggestion to amend the 2009 Act to include the advancement of human rights in its list of charitable purposes noted in section 3 of the same Act. In the continued absence of this definition, an anomaly has consequently arisen whereby organisations operating in the field of human rights advancement in Ireland can register as a charity under a number of other charitable purposes, such as the advancement of education, however, there is no charitable purpose that specifically mentions the advancement of human rights. The register of charities consequently does not accurately reflect the structure and nature of the wider sector. Human rights organisations that do not register as charities are still required to establish and operate different legal structures to ensure their work is in full compliance with the law.

I am just checking on other points the Senator raised. He had a drafting question on paragraph (d). We will check into that. I cannot identify it now.

Regarding the example he described around the university, again, I do not know the details, but educational institutions are exempt from many of the reporting requirements, if that is what it is. If it is a charity as well, as I mentioned in my opening contribution, there are exceptional situations where a trustee can be paid, but that now needs to go through a new process as well. I do not know the exact legal character of the organisation the Senator was talking about, and it will depend on what that is.

I know there are concerns out there when people hear there is a new law coming in relating to charities, and when people are trustees, they might get worried about extra requirements. I am glad Senator Murphy took the opportunity to underline this. That is not the case. In fact, trustees’ responsibilities are laid out simply in a couple lines. Much of it is not unreasonable to ask someone. When people read them and realise that these are the requirements, they will probably be relieved to know there is nothing hidden there. The requirements are quite reasonable. The Senator also raised the issue of the human rights, which I addressed.

I thank everyone for their contributions. I look forward to moving on to the next stage of the Bill.

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