Commission launches debate on regulation fees

The head of the Charity Commission has said the organisation is involved in an “open but important discussion” with charities over payment of annual fees to support the regulator’s work.

In a 25 June interview with the Independent, Paul Sussex said that commission chair William Shawcross was leading “a series of very open conversations with sector figures and chief executives of charities”.

The interview coincided with the publication of research that found that 69 per cent of the public believed charity regulation should be partly or fully funded by charities themselves, a view shared by only 23 per cent of respondents from within charities.

Among charity respondents, 68 per cent believed charity regulation should be funded entirely through general taxation, as is currently the case.

Mr Shawcross said: “We must look into all the options for placing the commission’s funding on a more secure footing and I want to continue the discussions I have begun with senior charity people to understand their perspectives on this question.”

Charities are likely to feel that the financial impact of a levy to fund the commission’s work should be a key fact in decision-making on any funding reforms, as additional pressure on already limited resources could create major financial challenges for some organisations.

As the issue continues to evolve, Moore Thompson can provide expert advice to assist charities in enhancing financial and tax efficiency, to maximise resources available for their core work. For more information on how we can help, please contact us.