Regulator's reviews help charities provide public benefit

A new report published today by Scotland's charity regulator provides a ready reference to help charities understand and address potential issues in meeting the requirements of charitable status.

The Office of the Scottish Charity Regulator (OSCR) has produced 'Protecting charitable status' as a summary of its reviews over the past six years to guide charities and inform the public.  OSCR Chief Executive David Robb said that the new report gives reassurance that Scotland's charities provide benefit to the public in pursuing charitable purposes.

'As we develop our reviews for the future, this new report provides a summary of our experience and we hope it will be a useful reference document for charities on key aspects of regulation and governance,' he said.  'The report also demonstrates our impact as a public body, reassuring the public that Scotland's charities are meeting the requirements of the law.

'We are keen to assist charities in meeting those requirements, and in addition to our guidance material, this new report sets out some key points and real-life examples that will illustrate the issues we consider,' he added.  'It also demonstrates the real diversity of the sector in Scotland and the wide range of issues that can emerge.'

All charities in Scotland must meet the 'charity test' set out in legislation, demonstrating that they have charitable purposes,  provide public benefit and meet other legal requirements.  Since April 2006, all applications for charitable status in Scotland have been assessed by OSCR against this requirement, with some 4,949 granted charitable status on this basis.  The new report explains how the Regulator reviewed existing charities in specific 'priority groups' where it felt issues may exist as to whether the test was met - for example, fees, private benefit, or control by other bodies or Ministers.

Where OSCR's in-depth reviews found problems for certain types of charity, such as independent schools, these charities addressed the Regulator's concerns to meet the requirements of charity law and significantly increase access to the public benefit they provide.

Based on its experience to date, OSCR has determined that there is no need for a full scale review of charities in the Scottish Charity Register, although it has powers to review any charity.  Going forward, OSCR will focus its reviews on those types of charity where there seems to be the greatest likelihood of difficulty in complying with the requirements of charity law.  The basis for its reviews will be broader, covering a range of regulatory issues including governance and an emphasis on international charities.

ENDS

Issued by OSCR, 9 Riverside Drive, Dundee DD1 4NY.  For further information, contact Mark Simpson on 01382 220446 or 07920 274498, or email: communications@oscr.org.uk

Background

1. OSCR is the independent regulator and registrar of Scotland's 23,500 charities.  OSCR publishes the Scottish Charity Register at www.oscr.org.uk
2. OSCR's vision is for a flourishing charity sector in which the public has confidence, underpinned by OSCR's effective delivery of its role.
3. Sections 7 and 8 of the Charities and Trustee Investment (Scotland) Act 2005 set out the charity test that must be met in Scotland.  In particular (and in contrast to the position in England and Wales) the 2005 Act sets out specific factors which OSCR must look at in assessing whether organisations pass the test.  In summary, a charity must have exclusively charitable purposes and provide public benefit; and, in doing so, where conditions exist on gaining access to the benefit (such as fees), these must not be unduly restrictive.  In addition, OSCR must have regard to issues such as private benefit and any disbenefit to the public.
4. As part of its ongoing review of charitable status, OSCR assessed 66 individual charities in detail, within identified 'priority groups' as it believed there to be potential issues affecting whether the charity test would be met.  These groups included: agricultural charities; zero income charities; student organisations; independent schools; NHS endowment charities; and charities selected from OSCR's own case work.