The Directory of Social Change has written to the Chancellor urging him to rethink plans to charge charities for regulation, ahead of the Budget next month.
Debra Allcock Tyler, chief executive, has written to Phillip Hammond asking him to “find a viable funding settlement for the commission out of general taxation”.
A consultation on charging charities to contribute to the regulator has been expected for some time but needs approval from the Treasury before it can be launched.
The commission’s budget has halved over recent years, from around £40m in real terms a decade ago, to £20m today. William Shawcross, chair of the regulator has repeatedly indicated his preference for larger charities paying something towards the regulator’s running costs.
Allcock Tyler said that DSC is opposed to charging charities for regulation because fees would “siphon off charitable donations”, “be a damaging burden on charitable resources”, “could lead to bad or distorted regulation” and ultimately “be poor value for money”.
“The commission’s work is critical to the effective functioning of hundreds of thousands of charities across England and Wales. Adequately funding it via general taxation is in the country’s best interest,” she said.
She also told Hammond that DSC supports the pre-budget submission made by the Charity Finance Group on behalf of a number of other organisations in the sector.
The Spring Budget will take place on 8 March.