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Charity Commission publishes draft guidance on education and fee-charging

Governance | 8 Apr 2008

The Charity Commission launched further draft supplementary public benefit guidance for charities, with the publication of Public Benefit and the Advancement of Education and Public Benefit and Fee-charging. This follows the launch of draft guidance for religious and poverty-relieving charities, all of which are inviting responses.

Under the 2006 Charities Act, for the first time all charities – including charities which advance education or religion, or relieve poverty – must show that their charitable aims are for the public benefit. The two key principles of public benefit are that there must be an identifiable benefit, or benefits, and that benefit must be to the public, or a section of the public.

The draft supplementary guidance on Public Benefit and the Advancement of Education explains how the principles of public benefit apply specifically to charities advancing education.  It looks at how advancing education can be for the public benefit and how educative value can come from either the subject of education or the educative process. It considers how the benefit an education charity provides must be related to its aims.

It also considers what the meaning of education is for charity, for instance how far it must be neutral, and it also considers what running a school might mean in a modern context. Issues relating specifically to independent charitable schools are covered in the fee-charging charities guidance.

The draft supplementary guidance Public Benefit and Fee-charging explains how the principles of public benefit apply to charities that charge fees, as well as summarising key points for trustees to consider. The Commission has produced draft guidance particularly for fee-charging charities to recognise any additional factors that they may need to consider in demonstrating how they provide public benefit.

The guidance looks at the effects that fee-charging might have on who can benefit from charities, and ways to ensure that those who cannot afford the fees can still benefit. It also looks at questions of setting and assessing the impact of charging fees, and explains that charities cannot simply ‘opt out’ of their charitable status in order to avoid demonstrating public benefit.

Charity Commission consults on extra religion and poverty guidance

The Charity Commission launched consultations on draft supplementary guidance for charities on public benefit, and is calling for responses. The draft guidance -  Public Benefit and the Advancement of Religion, and Public Benefit and the Prevention or Relief of Poverty, follows the publication of general guidance on public benefit in January 2008.

Under the 2006 Charities Act, for the first time all charities – including charities which advance education or religion, or relieve poverty – must show that their charitable aims are for the public benefit. The two key principles of public benefit are that there must be an identifiable benefit, or benefits, and that benefit must be to the public, or a section of the public.

The draft supplementary guidance on Public Benefit and the Advancement of Religion explains how the principles of public benefit apply specifically to charities advancing religion.  Issues considered include the meaning of advancing religion as a charitable aim, and suitable terminology to use in defining what is a charitable religious belief.

The draft guidance considers what the public benefits of religion might be, and when they might be affected by issues of detriment or harm. It also confirms that the Commission does not have the remit (or the desire) to change or try to modernise long-held religious beliefs.

The draft supplementary guidance on the prevention or relief of poverty explains how the principles of public benefit apply specifically to charities for the prevention or relief of poverty.  Issues considered include the meaning of poverty in different contexts, how relieving and preventing poverty can be understood in charity law, and possible wider benefits to the community of relieving poverty.

The draft supplementary guidance proposes that relieving the poverty of people whatever the reason for their poverty, including people who are denied benefits by law, can still be for public benefit, and asks for suggestions on circumstances where relieving poverty might not be for the public benefit. It also considers the public benefit of benevolent funds and family poverty trusts.

To accompany this draft supplementary guidance, the Commission has also taken the opportunity to publish new draft guidance on the Promotion of Social Inclusion, as this is an area in which many poverty charities, as well as other sorts of charity, are also engaged.

 www.charitycommission.co.uk

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