OSCR will not appeal a court ruling quashing its decision to revoke charitable status from a Catholic adoption agency which it found discriminated against same-sex couples. 

In January, the Scottish Charity Appeal Panel overturned the regulator’s decision that St Margaret’s Children and Family Care Society lose its charitable status because it discriminated against same-sex couples.

OSCR opened an inquiry into the charity after receiving a complaint from the National Secular Society in May 2012. The organisation claimed that St Margaret’s was in breach of the Equality Act 2010 by expecting applicants to have been married for at least two years.

The appeal panel ruled that the discrimination was indirect because St Margaret’s gives priority to prospective parents who are a couple, Catholic and married for at least two years.

In an explanatory note OSCR stated: “The note of reasons supplied by the appeals panel with its decision includes a number of comments on wider aspects of charity regulation which OSCR finds difficult to follow.”

The note reiterates OSCR will continue to regard unlawful discrimination by charities as a serious issue that would prompt a re-examination of whether the charity meets the public benefit test.

OSCR is planning to update its guidance on meeting the charity test, and will consider the issues raised by the St Margaret’s case when doing so. No timescale has been decided and OSCR will consult on revised guidance.