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Hind and Leather defend schools decision in letter to MPs

Hind and Leather defend schools decision in letter to MPs
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Hind and Leather defend schools decision in letter to MPs 1

Finance | Tania Mason | 12 Aug 2009

The Charity Commission has fired off a letter to all MPs and peers to remind them that it was parliament that created the public benefit requirement and not the Commission, in the wake of the recent media backlash against the failure of two independent schools to pass the public benefit test.

The letter, from the Commission’s chair Dame Suzi Leather (pictured) and chief executive Andrew Hind, begins:  “You may have seen some media coverage recently regarding the Charity Commission’s public benefit assessments of 12 charities including some independent schools. 

“Some of the coverage has been somewhat misleading, so we wanted to give our key stakeholders some information and the opportunity to ask any questions you may have.  Mindful of our accountability to parliament, we have also contacted all MPs and peers in a similar vein.”

It goes on to remind recipients that it was parliament, in passing the Charities Act 2006, that created the public benefit test that all charities, not just schools, must now pass.

And it seeks to defend the Commission’s actions on its initial public benefit assessments, including the decision to fail the two schools:  “The key point about the public benefit test is that, whilst it is based in charity law, it’s actually very close to what the public expect from charities. 

“Many polls have shown that the public have a very straightforward view of what charity is all about, and that is providing for people in need.  This is the primary role of the Charity Commission as a regulator – to maintain public trust and confidence in charity.

“The Charity Commission has a long history of making decisions independently, transparently and impartially, based on the legal framework within which we are required to operate.  That is exactly what we are doing now.”

Separately, this week the Independent Schools Council threatened to take legal action against the Commission's interpretation of the Charities Act on public benefit, as a last resort.

D S Tallon
12 Aug 2009

Leathers and Hinds' letter ignores the fact that the change of definition in the Charities Act was Party political and their justification on tax grounds was wrong.

Education whether public or private is VAT exempt. It means you don't have to charge it for your services. But it also means you cannot recover it on your costs. It has nothing to do with charitable status.

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