The Plymouth Brethren Christian Church has recommended to the Public Administration Select Committee that the section of the Charities Act that removes the presumption of public benefit for charitable purposes, should be repealed.
And, both that part of the Act and the Charity Commission’s public benefit guidance should be suspended immediately, pending a review by the Law Commission of the meaning of charity and the obligation on the Commission to produce public benefit guidance, the Church has said.
The Church, an Exclusive Brethren sect that has limited contact with the outside world, has been thrust into the spotlight recently by the Charity Commission’s decision to refuse charitable status to one of the trusts that hold its gospel halls. The Commission said the Church did not pass the public benefit test because it does not provide wide enough access to its services or offer sufficient benefits for the wider community.
The Church will challenge the decision in the Charity Tribunal next year. In October elders from the Brethren gave evidence to the Public Administration Select Committee as part of the PASC’s inquiry into charity law and regulation, and a number of MPs on the committee made it clear they did not support the Charity Commission’s stance on the issue.
Written submission to MPs
Now the Church has put forward a written submission to the inquiry that seeks to clarify some of the things that were said by the elders at the hearing. It also made some recommendations for the Committee to consider.
Its first recommendation is that Section 4(2) of the Charities Act 2011 should be repealed. This section states: “In determining whether the public benefit requirement is satisfied in relation to any purpose falling within section 3(1), it is not to be presumed that a purpose of a particular description is for the public benefit.”
The removal of the presumption of public benefit for charitable purposes was one of the most fundamental changes in the Charities Act 2006 (the precursor to the 2011 Act). Now, under the new law, charities cannot simply rely on the fact that their purposes are charitable; they must also be able to demonstrate that they are for the public benefit.
‘Lack of clarity in the Act’
In its written submission, the Brethren said it believed the Charity Commission’s decision arose because of both a lack of clarity in the 2006 Act and the statutory obligation placed on the Charity Commission to produce guidance on public benefit.
It said: “We do not think it was the intention of the Act to oust from charitable status long-established Christian charities. Nor do we believe that that was the intention of Parliament at the time.
“We recommend the suspension and repeal of section 4(2)…because we believe that its intended effect is unclear and that that lack of clarity has led to two cases before the Tribunal (relating to independent schools and benevolent funds) and is now at the root of a third Tribunal case, the Preston Down Trust appeal.”
More checks and balances in current process
As well as changing the law, the Brethren recommended that more checks and balances be added to the current process for making important legal decisions on charitable status. These should include a time limit for decisions, a requirement that the Commission consult other regulators such as OSCR and HMRC, and the ability to refer “legally ambiguous” cases to the Attorney General before a decision is made.
The Church also advocated that any process for clarification of the law should not be at an individual charity’s expense.
The deadline for written submissions to the PASC inquiry was noon today.
