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Legal expert slams 'outrageous' lack of equality guidance

Finance | Gareth Jones | 7 Sep 2010

A top lawyer has condemned the lack of guidance available on the imminent Equality Act, saying that both the Charity Commission and the Equality and Human Rights Commission (EHRC) have left charities “in limbo”.

With the Act due to come into force on 1 October, the EHRC has yet to release its code of practice for legal professionals while the Commission has yet to release its guidance for charities.

In a briefing highlighting the problem, Ian Davies, senior consultant at Wilsons Solicitors, argues: “If a charity believes it cannot meet the tests it is in limbo. If it carries out its charitable purposes it breaks equality law. If it applies its funds generally it is in breach of trust and breaks charity law.”

Davies adds that the Charity Law Association had raised the potential problem of charities seeking to change their objects unnecessarily due to a lack of guidance, but the regulators had still failed to provide adequate advice.

“For regulators to leave charities in this sort of limbo this close to an implementation date when the consequences can be so serious is outrageous. Especially when the issues were highlighted months ago.”

'Expert role' for Charity Commission

A spokeswoman for the EHRC said its guidance for the voluntary and community sector has now been issued and that its detailed code of practice for legal specialists will be laid before parliament early next month.

She added: “As with any new law, both the courts and, for this sector, the Charity Commission, will have an expert role to play in clarifying the law after it is implemented.”

A spokeswoman for the Charity Commission said its guidance would be available “later this year”.

She added: “The governing documents of many charities limit the provision of support and services to groups of people based on a particular characteristic such as gender, age or ethnic origin.

“In most cases there is a good reason for this - their work is aimed at addressing specific disadvantages or needs experienced by that group.

“Provided that charities are satisfied that there is disadvantage or need affecting the group they limit their services to, they will continue to be within the scope of the part of the new law known as the charities exemption.”

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