No review of the Charities Act at this time

Community and Voluntary Sector Minister Jo Goodhew announced today that Government will not proceed with a review of the Charities Act 2005 at the present time.

“The decision to not conduct a review for now reflects that the regulatory regime for charities is still bedding in and the continuing constrained fiscal environment,” said Mrs Goodhew.

In 2010 the Government announced its intention to undertake a first principles review of the Charities Act.

“In light of the recent amendments to the Act which disestablished the Charities Commission and transferred its functions to the Department of Internal Affairs, a first principles review of the Act is no longer appropriate,” said Mrs Goodhew.

“The Government considered narrowing the review to look only at the definition of charitable purpose in the Act.  However, it is likely that the current tight fiscal environment would limit the scope of such a review, due to the probable tax implications of any widening of the definition.”

“After careful consideration I have decided that now is not the right time to undertake a review of the charitable purpose definition.  This is not a decision I have taken lightly.

“The current definition is still working reasonably well so the need for a review is not pressing.  I will reconsider a review of the definition once the fiscal situation has improved.”