With the Charities Bill making its way through the Northern Ireland Assembly, Jenny Ebbage explains what it means for charities registering with the regulator.

The hiatus on the registration of charities in Northern Ireland is coming to an end.  The Charities Bill, which is intended to rectify the defect in the definition of the ‘public benefit requirement’ in the Charities Act (Northern Ireland) 2008, is making steady progress through the Northern Ireland Assembly and if all goes well we should see the legislation coming into effect in the next few months.

The new public benefit requirement in the Bill means that a charity will need to demonstrate that it has a charitable purpose which is for the public benefit “as that term is understood for the purpose of the law relating to charities in Northern Ireland”.

This means that the case law in Northern Ireland and the way in which public benefit has been assessed and determined in case law to date (including HMRC cases) remains relevant.  The new Bill removes the so called “presumption” that any charitable purpose is for the public benefit but whether this actually matters in practice is debatable.  Even though there were some heads of charity which were presumed to be for the public benefit there was always an overriding principle in the case law that a charitable purpose must be provided for the benefit of the public. This benefit is different depending on the nature of the charitable purpose.  

To help charity trustees and directors understand this requirement the Charity Commission for Northern Ireland will issue guidance on the public benefit requirement.

It is clear that the requirement to demonstrate public benefit is not going away but this is no more than the public can expect from the charity sector and should not be seen as a threat by any charity.  This is an opportunity for charities to demonstrate clearly what their charitable purposes are and how they provide benefit to the public.  It is also a good idea for each charity to check that its charitable purposes are still relevant and that the charity is operating within them.  But take care and obtain legal advice if a change is required as the law in Northern Ireland sets out a number of formal processes which are different from those in England and Wales and Scotland and which must be followed when making a change. Openness and transparency is key and the requirement to report on public benefit provides an opportunity for charities to also demonstrate their value to society and to find additional supporters.

Jenny Ebbage is a partner at Edwards & Co