The role of the Fundraising Standards Board – the body chaired by industry veteran Colin Lloyd (pictured) which polices charity marketing – will be under intense scrutiny as part of the review of the Charities Act 2006, according to the Government.
The review will be overseen by Lord Hodgson of Astley Abbots, a Tory peer in charge of the “Big Society deregulation taskforce” to slash the number of rules governing the voluntary sector.
It will also probe the Charity Commission. Lord Hodgson will investigate the number of decisions made by the Commission which can be appealed against or reviewed by the charity tribunal.
How public charity money is collected will also be looked at, particularly its licensing regime, Civil Society Minister Nick Hurd said.
The legal review will have two main purposes: whether changes can be made to improve the legal and regulatory framework in which charities operate, and whether or not the Act is effective.
The review has to adopt a “broad approach” and within the two main purposes, answer the following questions: What is a charity and what are the roles of charities? What do charities need to have/be able to do in order to be able to deliver those roles? What should the legal framework for charities look like in order to meet those needs?
Diane Gill, partner in the charity law team commented: “There is no question that charities are operating in a new economic environment which necessitates a change in mindset for all those involved. As new challenges are thrown up, it is important that the law evolves so that it remains relevant and current.
“Much of the commentary about the review focuses on the fact that this is an ideal time to step back and review what is working well and what could be improved. If the review does achieve less red tape for charities and smarter safeguards, so the public can be more confident in their support for charities, then this should be welcomed.”
