Leading charities have welcomed a new legal structure for charities proposed in a Law Reform Commission paper published today.
Charities in Ireland are virtually unregulated, but the new structure would replace the diverse legal forms of organisation currently used.
Methods currently used by charities include charitable trusts, limited companies and unincorporated associations. None of these structures was designed specifically for charities.
Paddy Maguinness, deputy chief executive of Concern, said he was broadly pleased with the Law Reform Commission's proposals.
"It is only sensible that legal structures be put in place. It is very hard for the public to see how charities have been structured up to now. Regulations and structures will aid transparency and accountability," he said.
However, he warned: "Smaller charities should be borne in mind when implementing any new regulations. It is important not to burden them with excessive regulation.
"There is a delicate balance to be achieved in introducing much-needed regulation and being careful not to stifle spontaneity in smaller charities and community initiatives," he added.
The deputy director of Trócaire, Eamonn Meehan, said a new legal system for charities was long over due and badly needed. "Regulation will benefit reputable charities and will enhance public confidence in our organisations. This is something most charities want badly," he said.
"If this new report from the Law Reform Commission leads to the provision of legislation, it's a good thing."
The Law Reform Commission is seeking submissions on the reforms proposed by March 31st.
Green Party spokesperson on community and rural affairs Dan Boyle said the Law Reform Commission paper only served to highlight Government indecision on the matter.
"Here we are 26 months after the Law Reform Commission released its substantive report on the reform of charities legislation, and the Government is still naval gazing on the issue," he said.
"That said, the recommendation contained in the paper to set up a new legal entity for charities - to be named the Charitable Incorporated Organisation - is worthy of consideration. It would certainly improve the current situation where charities are resorting to a plethora of legal entities," he added.