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Last Updated: Tuesday, 5 July 2005, 13:03 GMT 14:03 UK

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Charities Bill

AIM

This bill seeks to reform laws governing the voluntary sector in the UK to improve the accountability and regulation of fundraisers.

MAIN PROVISIONS

BILL'S PROGRESS 2005

Responsible department: Home Office

Origin: House of Lords

Introduced: 18 May 2005

Second reading: 7 June 2005

Committee stage: 28 June, 12,13 July 2005

Report stage: 12 & 18 October 2005

Third reading: 9 November 2005

COMMONS:

First reading: 9 November 2005

Second reading: 26 June 2006

Committee stage: 4, 6, 11 and 13 July 2006

Report stage: 25 and 26 October 2006

Third Reading: 26 October

ROYAL ASSENT: 8 November

Includes many recommendations addressed by the prime minister's Strategy Unit in 2002, amending the Charities Acts of 1992 and 1993

The bill provides for the first time a general statutory definition of charity for the purposes of law.

The legislation will oblige organisations to pass a two-stage public benefit test to qualify as charity

The Charity Commission for England and Wales will be responsible for the accountability of the system

BACKGROUND

BILL'S PROGRESS 2004/05

Responsible department: Home Office

Origin: House of Lords

Introduced: 20 December 2004

Second reading: 20 January 2005

The regulation of charities is currently based in a 400 year-old statute.

To be considered a charity organisation it will be necessary to fulfil certain charitable purposes such as:-
-The prevention or relief of poverty
-The advancement of education
-The advancement of citizenship or community development
-The advancement of human rights, conflict resolution or reconciliation
-The promotion of religious or racial harmony or equality and diversity

The general functions of the Charity Commission are:-
-To determine whether institutions are or are not charities
-To Encourage and facilitate the better administration of charities
-To identify and investigate apparent misconduct or mismanagement in the administration of charities.