Exempt
and excepted charities
Previously
exempt charities have not been allowed to register with the
CC as it has been presumed that they were adequately overseen
by other public bodies, such as the Financial Services Authority
or Housing Corporation. The new Act ensures that these charities
are now also monitored for compliance with charity law.
The
Act divides previously exempt charities into one of two groups:
- those
entities that are already regulated by a body, other than
the CC, which has agreed to ensure they meet charity law
requirements. These charities will continue to be exempt
and will be regulated by their current regulator, now known
as a 'principal regulator'. The CC will be able to investigate
these charities if there is a request from their principal
regulator
- those
entities where no suitable regulator exists. In this case
a previously exempt charity will cease to be exempt and
will have to register with the CC. All such charities will
come under the jurisdiction of the CC. To ease the transition,
initially only those charities with an annual income of
over £100,000 are required to register. The threshold
is expected to be reduced in the future, but this may be
some years away.
Previously
excepted charities included certain groups that did not have
to register with the CC but could do so if they wished. These
groups included some religious charities, Boy Scout and Girl
Guide charities and some armed forces charities. In the future
the Act will require these charities to register with the
CC. As with the affected exempt charities discussed above,
initially as a transitional measure, only excepted charities
with an annual income of £100,000 or more will be required
to register. Those below the £100,000 threshold will
be under CC jurisdiction but will not have to register.
These changes will take effect in 2008.
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C o m p l e t e
Regulated
to carry on audit work for a range of investment business
activities by the Institute of Chartered Accountants in England
and Wales