CABINET OFFICE News
Release (CAB/092/07) issued by The Government News Network on 11
December 2007
Phil Hope,
Minister for the Third Sector, and Dame Suzi Leather, Chair of the
Charity Commission, have today jointly published, for
consultation, a package of proposals to increase various financial
thresholds for charities. If implemented, these would free up
resources for up to 75% (125,000) of registered main charities and
help ensure they are not disproportionately burdened by regulation.
The aim of the proposals is to reduce administrative burdens on
charities while maintaining an effective regulatory framework. The
main proposals are:
* only registered charities with an income above £25,000 would
need to prepare a Trustees Annual Return, currently a requirement
for all registered charities;
* the income threshold of £10,000, above which charities must
submit their annual accounts to the Charity Commission would
increase to £25,000;
* the income threshold of £10,000, above which charities must
have their accounts externally examined, would increase to
£25,000; and
* the threshold of £100,000, above which a charity must prepare
accruals accounts (as opposed to simpler receipts and payments
accounts), would be raised to £250,000. These measures will enable
thousands of registered charities to meet their accounting and
reporting obligations in a simpler and less expensive way.
Phil Hope, Minister for the Third Sector said:
'There are thousands of small charities that bring enormous
benefits to our communities. I want to ensure that they are able
to focus as much of their time and energy as possible on changing
peoples lives. Of course, effective regulation of charities is
important in maintaining high levels of public trust and
confidence in the sector. These proposals reach a better balance
that would reduce the burden of regulation for up to 125,000
charities whilst retaining a proportionate level of accountability
and transparency.'
Dame Suzi, Leather, Chair of the Charity Commission said,
'Nearly three quarters of registered charities would benefit
from a reduced regulatory burden under these recommendations. This
would make things easier for these small charities and their
trustees without significantly reducing the accountability and
transparency which is crucial to maintaining the public's
trust and confidence in the charity sector as a whole. We are keen
to hear what charities and the wider public think and would urge
as many as possible to let us have their views.'
The consultation will close on 31 March 2008. Following the
consultation process work will begin on implementing the changes
later in 2008.
The review of financial thresholds was a commitment that the
Government made during the passage of the Charities Bill through
Parliament. This consultation document presents the outcome of
that review and invites comment.
Also today both the Cabinet Office and Charity Commission
published their second annual simplification plans that set out a
number of measures to reduce the burden of red tape on charities
by 2010.
Notes to Editors
1. The consultation document is available at: http://ww2charity/enhancingcharities/consultations.asp
2. The Cabinet Office and Charity Commission have both published
simplification plans today as part of a cross government
initiative to reduce the administrative burden of regulation. For
further information please see: http://bre.berr.gov.uk/regulation/reform/simplifying/plans.asp
3. The Charities Act 2006 aims to support a dynamic and vibrant
sector, ensuring that it continues to enjoy high levels of public
confidence. For further information please see: http://www.cabinetoffice.gov.uk/third_sector/law_and_regulation/charities_act_2006.aspx
http://www.cabinetoffice.gov.uk
http://www.charity-commission.gov.uk