Proposed new powers for the Charity Commission are "too broad" and give it too much authority to remove trustees, the NCVO has said in its response to a Cabinet Office consultation.
The consultation, which closed yesterday, proposes 17 changes which would give the Commission powers to disqualify trustees more easily, to close down a charity and transfer its assets to another organisation, and to use its powers before opening a statutory inquiry.
The NCVO said in its response that it supported most of the proposed changes to Commission powers, but also said they were less important than a change in culture at the Commission.
It said the Commission currently had a “too cautious approach” and said this could be down to “a policy decision, or an overly legalistic approach, or a lack of resources", rather than because existing powers are inadequate.
“NCVO remains of the view that the real change that is required is not a legal one, but a cultural and strategic one,” the response said.
The Commission has said that its current powers of disqualification are inadequate. At present even terrorism offences or money-laundering do not automatically disqualify someone from trusteeship. In addition a trustee threatened with disqualification can resign and become trustee of another charity without sanction.
The NCVO said it accepted the existing rules about trustee disqualification were too restrictive, but that the new rules were "too broad".
“They would allow the Charity Commission a significant degree of discretion, and in particular raise the risk that the Commission could choose to use its general power to disqualify when there is insufficient evidence to institute an inquiry,” the response said.
Elizabeth Chamberlain, policy manager at the NCVO, said her organisation also "would not be comfortable with" proposals in the document which allowed the Commission to use its powers outside a statutory inquiry.
Asheem Singh, head of policy at chief executives body Acevo, also said his organisation broadly supported the Cabinet Office’s proposals, but had reservations about some powers.
“For example, we feel that a proposed power to block charities in advance from holding particular events or hosting certain speakers is disproportionate and would constitute an undue limitation of charities’ independence,” he said.
Local infrastructure body Navca said that while it broadly supported the proposals, it would favour a review in several years’ time “to ensure any new powers are being used proportionately and effectively”.
