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| Charities have nothing to fear |
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By
S Heaphy
Nov 23, 2008 |
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Smaller Irish charity organisations will not be saddled with over onerous reporting requirements as part of the new Charities Bill 2007 which is currently being passed through the D�il and Seanad.
Director of Finance, Focus Ireland, Evelyn Fitzpatrick, CPA said "Some smaller charities, in particular, have fears that the new legislation will result in an increase in administration and that they might not have sufficient resources to cope with the new requirements. I believe these fears about the new Bill are not well-founded�.
"Proportionality is a key element of the legislation and there will be varied reporting and audit requirements depending on whether a charity�s income of expenditure exceeds �100,000� she stated.
Ms Fitzpatrick was addressing a seminar organised jointly by the Institute of Certified Public Accountants in Ireland (CPA), the Carmichael Centre for Voluntary Groups and the Disability Federation of Ireland (DFI). The Charities Bill 2007 is likely to be passed into law in the New Year and aims to introduce greater accountability for charities through a new statutory regime and strengthened financial management. In addition, the legislation will include the establishment of a Charities Regulatory Authority which will oversee the regulation and protection of charitable organisations.
Ms Fitzpatrick added that the Irish legislation is closely modelled on existing successful UK legislation, will for the first time provide for formal recognition and regulation of Irish charities, and will provide for specific reporting standards, codes of practice and establish reporting lines to the new Charities Regulatory Authority.
�There will be some catch-up involved to bring charities up to the required standards but larger charities, which already operate under company law will already have the required standards in place and will see little change in their operations. Smaller charities have nothing to fear as there will be a consultative approach and a principal of proportionality adopted for smaller charities and voluntary groups.� she added.
CPA President Norman Adams said: �As recipients of both public and private monies, charitable organisations must demonstrate accountability and show how their funds are allocated. Maintaining and filing accounts requires the implementation of business principles and as a statutory body the CPA is proud to be assisting in this process through our joint initiative with both the DFI and the Carmichael Centre.�
The seminar was the latest element of a joint initiative by the CPA and the DFI. Previously, the CPA and DFI combined to produce a best practice manual for charities in advance of the Charities Bill becoming law and have also published guidance documents to help charities keep proper accounts. The content of the seminar will be translated into a free webinar for use by charities and not for profit organisations and will be available to download at www.cpaireland.ie later in the year
Ends
The Institute of Certified Public Accountants in Ireland is one of the main Irish accountancy bodies with in excess of 5,000 members and students in the island of Ireland. The CPA designation is the most commonly used designation worldwide for professional accountants and the Institute�s qualification enjoys wide international recognition. Its current Membership operates in Public Practice, Industry, Financial Services and the Public Sector and CPAs work in over 28 countries around the world.
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