THE CHARITIES ACT 2009
General Public- Questions and Answers
The information provided here is intended to provide answers to queries from the public relating to the Charities Act 2009. Please note that it is not a legal interpretation of the Act.
1. How will the Charities Act improve the existing regulatory framework for charities?
Charities in Ireland have actually been unregulated since the foundation of the State. The intention behind the Charities Act is that an integrated system of mandatory registration and proportionate regulation and supervision of the charities sector will be introduced for the first time in Ireland. For the first time, too, there will be a statutory definition of what a charity is.
The approach adopted in the Act recognises that:
2. When will the Charities Act come into force?
The enactment of the Bill does not in itself immediately bring the Act into force. It is only when the Minister commences individual provisions sections of the Bill that charities will find themselves with new legal responsibilities. There is a considerable body of work to be undertaken in preparation for statutory regulation. The Department will be rolling out an implementation plan for the Act. This plan will ensure that the essential elements are in place to enable the introduction in due course of the statutory regulatory framework provided for in the Act. In other countries, it has taken a number of years after enactment of the legislation for the new regulatory system for charities to be formally introduced. This is likely to be the case in Ireland also, though some individual provisions of the Act may be commenced before the bulk of the Act is commenced. It is recommended that you add this page to your “favourites”, as any information regarding the commencement of any provisions of the Act will be available here.
3. How will the Act help the members of the public who wish to support charities?
The Act provides for a new Charities Regulatory Authority. When the Authority is established in due course (see Q2), it will establish a public Register of Charities. Any organisation that wishes to operate as a charity in Ireland will be legally obliged to be on the Register of Charities. The Register will be accessible by the general public, thus enabling the public to determine the charitable bona fides of the organisations they are considering supporting. If an organisation is not on the register, it will not be a charity in law. It will be an offence for an organisation that is not on the register to describe itself in such terms as to cause a member of the public to reasonably believe that it is a charity. Every charity will have to keep proper books of accounts and to have these audited or examined.. Every charity will also have to provide an annual report on its charitable activities to the new Charity Regulatory Authority, and this will be available to the public.This improved transparency and accountability will help to improve public confidence in charities, by helping people to make more informed choices about their charitable donations.
4. How does the Act deal with charitable collections?
As regards public collections by charities, the Act updates the Street and House to House Collections Act 1962. The main changes include, for the first time, bringing “non-cash” collections (ie “promises of money”), and collections where tokens are exchanged in return for contributions, into the permit system administered by An Garda Síochána. Once the relevant provisions are commenced, such collections will require a permit from An Garda. The Act also enhances the security of collections. Please contact the Charities Regulation Unit of the Department should you require further information (see Q6 for contact details)
5. Where can I find information on charities at the moment?
The Revenue Commissioners determine whether a body is entitled to charitable tax exemption under the Taxes Consolidation Act 1997. A charity reference number (e.g. CHY123) issues to bodies granted charitable tax exemption. Revenue maintain and publish on their website a list of bodies that have been granted charitable tax exemptions. Any queries relating to this list should be directed to the Revenue Commissioners at:
Address: Charities Section, Office of the Revenue Commissioners, Nenagh, Co Tipperary.
Telephone: LoCall 1890 666 333
Email: charities@revenue.ie
Website: www.revenue.ie
6. Where can I obtain additional information on the Charities Act 2009?
Further information on the Charities Act 2009 is available from the Charities Regulation Unit of the Department of Community, Equality and Gaeltacht Affairs.
Name Telephone Email
Terry Dunne 01-6473083 tdunne@pobail.ie
Anne Delaney 01-6473144 adelaney@pobail.ie
Helen Murphy 01-6473247 hmurphy@pobail.ie
Colm Mac Donncha 01-6473017 cmacdonncha@pobail.ie
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Practitioners’ Questions and Answers
The information provided here is intended to provide answers to matters of concern to charities practitioners relating to the Charities Act 2009. Please note that it is not a legal interpretation of the Act.
1. What will my charity have to do right now to legally comply with the new Charities Act?
Don’t worry. The enactment of the Bill does not in itself immediately place any additional legal responsibilities on charities. It is only when the Minister commences individual provisions sections of the Bill that charities will find themselves with new legal responsibilities. It is recommended that you add this page to your “favourites”, as any information regarding the commencement of provisions of the Act will be available here.
In preparation for the new regulatory framework, it would also be wise to familiarise yourself with the main provisions of the Act. You may also contact the Charities Regulation Unit of the Department for further information (see Q8 for contact details)
2. When will the Charities Act come into force?
There is a considerable body of work to be undertaken in preparation for statutory regulation. The Department will be rolling out an implementation plan for the Charities Act. This plan will ensure that the essential elements are in place to enable the introduction in due course of the statutory regulatory framework provided for in the Act. In other countries, it has taken a number of years after enactment of the legislation for the new regulatory system for charities to be formally introduced. This is likely to be the case in Ireland also, though some individual provisions of the Act may be commenced before the bulk of the Act is commenced. It is recommended that you add this page to your “favourites”, as any information regarding the commencement of any provisions of the Act will be available here.
3. What effect will the Act have on the legal structure of my charity?
The Act is not prescriptive as regards the legal structure charities should have. This is a matter for the charity. Your charity can therefore retain its current legal structure or take on whichever legal structure suits best the needs of the organisation.
You should note that to be a charity for the purposes of the Act, your organisation must
Of course, a charity cannot be an “excluded body”, as defined in section 2 of the Bill.
4. My charity currently has charitable tax exemptions from the Revenue Commissioners. Will the Charities Act affect this?
Your organisation’s tax status will continue to be a matter exclusively for determination by the Revenue Commissioners. The Charities Act does not deal with taxation matters.
5. What are the key ways in which the Act will affect my charity?
The Act provides for a new Charities Regulatory Authority. When the Authority is established in due course (see Q2), it will establish a public Register of Charities. Any organisation that wishes to operate as a charity in Ireland will be legally obliged to be on the Register of Charities.
When the new Charities Regulatory Authority is established -
· Any organisation that has a current CHY Number from the Revenue Commissioners will be automatically deemed to be entered onto the Register of Charities. If your organisation meets this requirement, it will not have to apply to the new Authority to be entered onto the Register.
· If your organisation is a new charity, or an existing one that does not have a current CHY Number however, you will have to apply to the new Charities Regulatory Authority for entry onto the Register.
· Every charity will have to keep proper books of accounts.
· Most charities will have to provide a “statement of accounts” on an annual basis to the new Charities Regulatory Authority.
· Most charities, will have to have their accounts either audited, or, if your annual income or expenditure is below a threshold to be set by the Minister, examined by an independent person and provide them to the new Charities Regulatory Authority.
· Every charity will have to provide an annual report on its charitable activities to the new Charity Regulatory Authority.
Please contact the Charities Regulation Unit of the Department should you require further information (see Q8 for contact details)
6. My charity is a company and already reports to the Companies Registration Office (CRO). Will I have an additional filing burden?
The Act is consciously framed to minimise the potential for dual filing for charity companies. For example, if your charity is a company that already files its accounts and auditors’ report with the CRO, the CRO will simply pass on these documents to the new Charities Regulatory Authority. If you are a charity company that does not have to file these documents with the CRO under Company Law, you will have to send them directly to the Charities Regulatory Authority. Like all charities, you will have a new requirement to produce an annual report on your charitable activities, which you will have to submit directly to the Charities Regulatory Authority.
7. What effect will the Act have on my charity’s fundraising?
The Act will not affect current fundraising practices until the relevant sections are commenced.
The Act updates the Street and House to House Collections Act 1962. The main changes, when the relevant provisions are commenced, include, for the first time, bringing “non-cash” collections (ie “promises of money”), and collections where tokens are exchanged in return for contributions, into the permit system administered by An Garda Síochána. Once the relevant provisions are commenced, such collections will require a permit from An Garda.
It is recommended that you add this page to your “favourites”, as any information regarding the commencement of provisions of the Act will be available here. You may also contact the Charities Regulation Unit of the Department for further information (see Q8 for contact details)
8. Where can I obtain additional information on the Charities Act 2009?
Further information on the Charities Act 2009 is available from the Charities Regulation Unit of the Department of Community, Equality and Gaeltacht Affairs.
Name Telephone Email
Terry Dunne 01-6473083 tdunne@pobail.ie
Anne Delaney 01-6473144 adelaney@pobail.ie
Helen Murphy 01-6473247 hmurphy@pobail.ie
Colm Mac Donncha 01-6473017 cmacdonncha@pobail.ie