Speedy regulation of charities

Sir, – Carl O’Brien is correct (Opinion, December 13th) to call for the speedy appointment of a regulator to the charitable sector.

However, the sector needs a regulator with a reforming zeal rather than an administrative mindset. A recent experience may illustrate the point. A few months ago my wife and I were asked to participate in a fundraising event for a small charity. As is my practice I requested a copy of the audited accounts. The office administrator replied that she had never received such a request and would have to consult with the chief executive. He duly telephoned me and refused to send me the accounts adding that I could obtain a copy from the Companies Office.

This I did, only to find that the company had claimed the small company exemption and filed only a balance sheet without an accompanying income and expenditure account. It was impossible to learn anything about its financial affairs other than it had over €2 million on deposit in the bank. Whether this represented one, two or 12 months’ expenditure was impossible to assess. Yes the charity complied with the law, but the law is deficient when dealing with charities seeking financial support from the public. The public should also be aware that auditors specifically address their reports to the members, ie, shareholders or guarantors; and auditors have no obligation to third parties including creditors and donors.

That is why we need a reforming regulator who will insist on full information being provided by all charities availing of a CHY (a charity reference number for tax purposes) and that this information will then be made available to the public via the regulator’s website. – Yours, etc,

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DAVID McCABE,

Waltham Terrace,

Blackrock, Co Dublin.