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Public benefit amendment defeated in the Lords

Public benefit amendment defeated in the Lords
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Public benefit amendment defeated in the Lords

Finance | Gareth Jones | 1 Nov 2005

An amendment to the Charities Bill requiring the Charity Commission to 'consider the effect on public benefit of the charging policy of any charity' was lost to a vote at report stage in the House of Lords Last month. Lord Phillips of Sudbury proposed the amendment because of concerns that existing case law about public benefit gives very little guidance as to its definition.

The case of Re Resch, which is the main authority, appears to many charity lawyers only to require that charities that charge high fees for their services must merely show that the less well-off are 'not entirely excluded'.

NCVO has been pressing on this issue and expressed disappointment with the result of the vote and chief executive Stuart Etherington (pictured) said: "The government has failed to properly consider the case for the amendment and has not provided the reasons for its rejection. It is important the Charity Commission takes up the responsibility for this as we believe that the Charities Bill does not address the impact of fees on public benefit. The government has said that the Commission already has the necessary powers. It is now incumbent on it to demonstrate that this is the case and to use them."

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