The Charities Act 2009 has been on the statute books since 2009 but its material provisions have not yet been commenced. At this time therefore it is not clear exactly what steps must be taken by Charities in order to comply with the Act.

Nevertheless, there are a number of preparatory actions that can be taken to reduce the likely compliance burden once the Act and associated regulations are implemented. This Update sets out a suggested general "to do list" and "review list" to assist in this regard.

TO DO LIST

0-3 MONTHS

  • Identify your "Charity Trustee(s)"* and brief them on the new Charities Act 2009.
  • Identify areas for new record keeping - retention of materials.
  • Monitor developments.

3-12 MONTHS

  • Review governing documents, assets and "board" / Charity Trustee structure.
  • Discuss with accountants / advisers / board what changes, if any, necessary to financial records.
  • Consider what, if any, changes are likely to be required to fundraising programme.
  • Review protection for assets, Charity Trustees and employees and remuneration arrangements for any charity trustees who are paid.
  • Consider amendments to governing documents / organisational structure regarding the above.

1-3 YEARS

  • Implement any proposed changes to governing documents and/or organisational structure.
  • Implement any record keeping, governance and fundraising process changes.
  • Align financial reporting with anticipated CRA requirements.

REVIEW LIST

IDENTIFYING YOUR CHARITY

  • Identify Charity Trustees: Do they know their role? Are they properly appointed?
  • Find governing documents: Are they accurate and consistent with what you do? Are revisions required? Revenue consent?
  • Check Revenue and Approved Body status. If multiple CHY numbers, consider whether reorganisation is advisable or necessary.

WHAT DOES THE CHARITY OWN?

  • What does the charity own and who owns it?
  • What properties do you have and do you "operate" from them?
  • Are deeds and custodian / trustee appointments up to date?
  • Are funds reserved for more than 2 years? Why? Revenue consent?

WHAT RECORDS ARE KEPT?

  • Charity Trustee minutes / Executive minutes / other records.
  • Financial records: consider accounting advice and guidelines in light of €100,0000 threshold.
  • Do you prepare audited accounts? Do you use SORP guidance?
  • Are Charity Trustees paid as employees or for services? Revenue consent?
  • What is "expense ratio" and how it compares to others?
  • Have you implemented the Governance Code?.

HOW DOES THE CHARITY GET MONEY? (FUNDRAISING / TRADING / VAT)

  • What fundraising activities do we participate in?
  • Are we involved in trading? Revenue consent?
  • Do we comply with the current voluntary code of practice?
  • Is the charity an approved body? Should you be? Revenue application?
  • Fundraising records: See voluntary code of practice.

PROTECTIONS

  • What insurances and indemnities are in place?
  • Do assets need protecting from possible liabilities?

NON CHY (LOCAL, INTERNATIONAL AND OTHER NFP)

  • Do you fall within new definitions?
  • Should you register with the CRA? If so, when?
  • If international - what activities are regulated and what do you need to do?

* "Charity Trustee" includes:

a) in the case of a charitable organisation that is a company, the directors and other officers of the company; and

b) in the case of a charitable organisation that is a body corporate (other than a company) or an unincorporated body of persons, any officer of the body or any person for the time being performing the functions of an officer of the body, and references to a charity trustee of a charitable organisation shall be construed as including references to a trustee of a charitable trust.

This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.