The Charities Act 2009 was enacted on 28th February 2009. The Act is a significant milestone for all who operate in the not-for-profit, community and voluntary sectors in Ireland.

The purpose of the Act is to provide guidance and structure to all charities. The Act seeks to ensure greater accountability, enhance public trust and confidence and transparency in charities and their trustees.

The Minister will sign commencement orders at various stages over the next 12 –18 months, however there is a considerable amount of work and consultation to be completed prior to the new regulatory regime being commenced. All organisations currently registered as charities or considering operating as a charity should review the Act and prepare for the enactment of the legislation.

The main provisions in the Act are:

· A definition of a “Charitable Organisation” and of “charitable purpose”. Charitable purpose is defined as:

(a) the prevention or relief of poverty or economic hardships;
(b) the advancement of education
(c) the advancement of religion
(d) any other purpose that is of benefit to the community – a purpose shall not be a charitable purpose unless it is of public benefit.

· The establishment of a new Charities Regulatory Authority. The function of the Authority shall be to increase public trust and confidence in the management and administration of charitable trusts and to promote compliance by charity trustees with their duties in the control and management of charities. The Authority will establish and maintain a register of charitable organisations.

· A Charity Appeals Tribunal will be established to enable organisations to challenge decisions of the Regulator.

· Existing charities, currently registered with the Revenue Commissioners, will deemed to be charities by the Regulator and will be automatically included in the Register. The Authority will verify the claims of these registered charities.

· Any future organisations seeking to operate as charities will have to apply to the Charities Authority for charity status and to be entered into the Register of Charities. It will be an offence for an organisation that is not a registered charity to describe itself in terms that would cause the public to believe it is a charity.

· The Revenue Commissioners will still determine the eligibility of charities for tax relief’s.

· All Charities must submit an Annual Activity Report to the Charities Regulator. Companies registered with the Companies Registration Office will have their Annual Return and audited accounts forwarded to the Charities Regulator as soon as it has been filed with the CRO to help minimise dual reporting requirements.

· Charities that are not registered companies must comply with new provisions regarding books & records and accounts

· The charity trustees of a charitable organisation shall keep or cause to be kept proper books of accounts for that charitable organisation.

· Organisations with a gross income or total expenditure above an amount yet to be determined by the Minister (He shall not prescribe an amount greater than €500k) will be required to have their accounts audited within 9 months from the financial year-end and submit these accounts to the Regulator.

· Organisations where the gross income or expenditure of a charitable organisation in a financial year does not exceed €100k, the trustees may prepare an income and expenditure account and statement of assets and liabilities of the charitable organisation.

· Organisations where the gross income or total expenditure is less than €10k will not be required to submit accounts to the Regulator but will have to include a summary of their finances in their Annual Report.

· All charities will have to show their charity name and number on all collectors garments, collection boxes whether collecting cash or non-cash donations. All cash collection boxes will have to be sealed.

· There will be a Code of Conduct for Fundraising. Garda Permits will be required for all types of cash and non-cash collections. Details of fundraising must be included in the Annual Activity Reports.

· A charity will be permitted to remunerate a trustee(s) for providing a service once that service does note relate to the performance of their role & duty as a Trustee. Charities shall also indemnify their trustees out of the charitable funds of the organisation.

· The provision for consultative panels to assist the Authority in its work.