Charity finance could be in danger, according to groups

The Charity Commission is being urged to delay the consultation on charging for regulation.

The Charity Finance Group, the Small Charities Coalition and the National Association for Voluntary and Community Action (NAVCA) have written to the regulator stating the decision to leave the EU has caused too much uncertainty over charity finances.

The three Charity umbrella bodies have asked the Charity Commission to delay any movement to run a consultation on charging for the regulator’s services, because of the insecurity around Brexit.

The letter, written by the chief executives of the three bodies, highlighted flaws with the concept of charging charities for regulation.

The letter calls on the commission to postpone further plans to run a formal consultation for charging charities for regulation.

“Given the uncertainty facing our sector and the multitude of other issues that we need to grapple with, it is clearly not the right time to start a consultation on charging for regulation; an issue that carries great importance for the future of our sector” it reads.

It also sheds light on the fiscal environment in which the commission operates may change after the government announced it had dropped plans to create a budget surplus by 2020, following the Brexit decision.

According to the letter “it could be wise for the regulator to wait until after the government has set out a new fiscal framework before pushing ahead with plans to charge charities for regulation”.

In response, a spokesperson for the Charity Commission said it had not yet had the chance to consider the letter in full: “The outcome of the EU referendum will have a significant impact on all of society, including charities and their beneficiaries.

“We have spoken with a number of charities that are considering what involvement they might have in answering some of the questions the result has posed. We are also considering what impact the outcome will have on our future work plans.”

Posted in Charities.