New incorporated charity structure 'should be tightened'
Charities
22nd September 2009
Proposals for a new variety of incorporated charity structure that is designed specifically for the sector should include a tightening of certain rules, it has been suggested.
The Charity Commission and the Office of the Third Sector in the Cabinet Office stated in their response to a consultation that the former should have the power of direct rectification with regards to a series of "minor criminal offences for administrative failings".
Under the plans for the Charitable Incorporated Organisation (CIO) legal definition, charity trustees would receive similar responsibilities and protections to those that directors of limited companies currently have and the option is due to come into force in spring 2010.
However, the two government bodies want to ensure that a "robust, fixed duty of care" is in place for trustees.
Charity Commission chair Dame Suzi Leather commented: "The CIO will combine the advantages of a corporate structure without the burden of dual regulation."
The Office of the Third Sector has launched a consultation document that proposes pulling together and modernising legislation outlined in the Recreational Charities Act 1958, Charities Act 1993 and the majority of the Charities Act 2006.
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