The Charity Commission should act more like an “FSA for the charity sector” and force consolidations of charities when necessary, according to City editor of the London Evening Standard, Chris Blackhurst.
Blackhurst made the comments at a recent Public Administration Select Committee (PASC) meeting, where he gave evidence to MPs on financial services and philanthropy.
He complained that there were too many charities and asked why the Charity Commission did not act on this: “I would like to see the Charity Commission behaving like the FSA or Ofcom for the charity sector and forcing consolidations when necessary,” he said.
Blackhurst also said that the Commission did not seem to be taken a proper overview of the sector, after Conservative MP Charlie Elphicke asked whether the Charity Commission acted like a “paper tiger” on fraud.
A Charity Commission spokeswoman said: “We are aware that some people involved in the charity sector and beyond feel that there are too many charities pursuing similar objects on the Register of Charities. It is important to make clear, however, that it is not within the Commission's statutory remit to compel charities to merge, nor can we refuse applications to register from organisations whose objects are charitable and which operate for the public benefit.
“We do, however, encourage prospective trustees to consider whether forming a new charity is the best way to achieve their aims. We also provide guidance to charities on collaboration and merger, and our Mergers Unit offers extensive support to charities that have decided to merge, including by providing constitutional and legal help and, where necessary providing consent.
“Our strategic review process, which began in October 2010, has focused in part on improving the Commission’s ability to respond strategically to key risks. We are looking, for instance, at the potential for developing, in partnership with the charity sector, an active programme of peer review to help charities and the Commission identify and address areas of risk.”
