Charities which fail to provide information on their fundraising activities face financial penalties or being "named and shamed" under new Government measures to promote transparency in the sector.
The Government is due to publish a Charities Regulation Bill before the end of next year which will provide for an independent statutory body to regulate charities for the first time.
Caradas, the Irish term for an alliance, has been proposed as the new name for an independent statutory body which would regulate the sector.
It is proposed that the body would be responsible for compiling, publishing and maintaining a register of charities. All registered charities would be obliged to file annual returns to it.
Official figures suggest there are 6,000 charities with tax-relief status.
At present groups raising money for or on behalf of charities have no legal obligation to declare how much they collect or what they spend the money on.
The Government recently completed the first phase of a consultation process with the charitable sector and is due to publish a Charities Regulation Bill before the end of next year.
The Minister of State at the Department of Community, Rural and Gaeltacht Affairs, Mr Noel Ahern, who is helping to oversee the process, said the Bill would be the first comprehensive piece of charities legislation in 30 years.
"Fundraising has gone well beyond rattling a box," he told The Irish Times. "The absence of regulation means it's potentially open season for abuse of charitable status and fraud. Anybody can set up a charity in Ireland without having to register with an authority." Under current proposals, charities would have to publish details of how much they raise, what proportion goes on administration and marketing, and what level of donations go directly to charity.
In cases of fraud or misconduct, the new regulatory body would also be able to de-register charities or forward a file to the DPP where an indictable offence had been committed.
The Minister said he was aware that international terrorist or criminal organisations could be shielding their activities by setting themselves up as charities in this State.
