A charities regulator with powers to investigate and prosecute charities accused of misconduct or mismanagement will be appointed under new Government plans to overhaul the charitable sector.
The Charities Regulation Bill 2006, to be published shortly, would give powers to the regulator to enter premises, remove charity trustees, and freeze assets of charities which do not comply with new legislation.
It would also contain measures to oblige charities to file annual returns on fundraising activities or risk being "named on shamed" by the new regulator. At present, groups raising money for or on behalf of charities have no legal obligation to declare how much they collect or where the money is spent.
Minister of State at the Department of Community, Rural and Gaeltacht Affairs Noel Ahern, who published outline details of the new Bill yesterday, said it was the first comprehensive piece of charities legislation in 30 years.
"Charities have been unregulated since the foundation of the State. While regulation of the sector has been talked about, on and off, for close on 20 years, we are now producing concrete legislative proposals," he said.
The charities regulator would be given powers, either of its own or by order of the High Court, to take civil actions in order to ensure compliance with the legislation by charities.
Mr Ahern said he and his department would continue to consult charities in the final drafting which will take place over the coming months.
Official figures suggest there are 6,000 charities with tax-relief status, according to figures provided by the Revenue Commissioners. Mr Ahern had previously suggested that the loose regulatory regime has raised the risk of fraud and abuse.
In the first phase of the planned reform of the charitable sector, the Charities Regulation Bill would establish a statutory framework for charities.
In subsequent phases, regulations under the new legislation would implement the operational aspects of the new framework.
Government officials are planning to make the new register of charities accessible to the public, although it would be possible to withhold specific information, such as the identity of donors. The register aims to allow members of the public to confirm the legitimacy of a charity and limit the scope for fraud.
Registration would be mandatory for all charities seeking to operate or fundraise within the State.
