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EDITIONS
Wednesday, 12 February, 2003, 02:02 GMT
Top charities demand law reform
Lenny Henry and JK Rowling
Comic Relief: One of the most recognisable charities
News image

UK laws governing charities are so out of date the public sometimes does not know what makes a charity, leading organisations involved with the sector are claiming.

More than a dozen charities and pressure groups are launching a campaign for wholesale reform, calling on the government to introduce a "public benefit" test to all organisations gaining the status.

Current law, under which some 180,000 charities now operate, is based on a 400-year-old statute that deemed organisations carrying out religious, educational or poverty work to be worthy of the status.

But the law excludes many other organisations that research suggests many people think are charities, such as Amnesty International.

Survey

A survey of 1000 adults for the National Council for Voluntary Organisations (NCVO) found eight out of ten people did not realise the Royal Opera House has charitable status but two-thirds thought Amnesty International did.

BACKING REFORM:
Amnesty International UK
Cancer Research UK
British Heart Foundation
NSPCC
British Red Cross
Only 11% correctly identified one of the UK's top private schools, Eton, as a charity. Almost a quarter of those under 34-years-old thought the beauty chain the Body Shop was a charity because of its public campaigning on ethical issues.

According to the NCVO survey, a third of respondents did not realise charities were subject to scrutiny under a specific body, the Charity Commission.

Stuart Etherington, chief executive of the NCVO, said: "We are not trying to remove charitable status from any one particular type of organisation.

"The charities bill coalition believes it is essential, in the interest of preserving public trust and confidence in the voluntary sector, that the legal definition of charity is simplified."

Mr Etherington said the charities backing the campaign wanted to see legislation in the next Queen's Speech.

Downing Street report

Downing Street advisors have already recommended to the prime minister that the law should be overhauled to ensure all groups applying for charitable status pass a test proving public benefit.

PROPOSED DEFINITIONS OF A CHARITY:
Poverty prevention/relief
Education/health advancement
Sports, arts and culture
Advancement of religion
Community advancement
Human rights
Conflict resolution
Environmental matters
(As proposed by govt report)
Charities in Scotland come are governed by different laws and the Scottish Executive is continuing to examine the case for reform.

But the September 2002 report by the government's Strategy Unit said the law must guarantee charities were always open and accountable to scrutiny if the sector was to maintain the confidence of the public.

Among its 61 other recommendations were new wider definitions of what makes a charity and proposals for varying types of accountability depending on whether a charity is a multi-million pound organisation or a body working at a very local level.

The government also wants to see charities take on a greater role in delivering public services, especially organisations with long-standing reputations and experience of working closely to communities.

The government has already changed some tax regulations to try and encourage donations or volunteering.

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