Charities regulation legislation delayed until 2006

Legislation providing for the regulation of charities will not be available for another year, the Minister of State with responsibility…

Legislation providing for the regulation of charities will not be available for another year, the Minister of State with responsibility for the sector admitted yesterday.

Speaking amid concern over the possible defrauding of funds at the Christina Noble Foundation, Noel Ahern, Minister of State at the Department of Community, Rural and Gaeltacht Affairs, said the Charities Regulation Bill - due to be published this year - would not be available until next spring at the earliest.

Niamh Ní Chonghaile, chairwoman of the Irish Charities Tax Reform Group, an umbrella organisation for the sector, said its members were frustrated at the delay. "All charities are supportive of regulation because it proves that they are doing what they say they are doing. Charities are anxious to see this come in as soon as possible."

Mr Ahern told RTÉ Radio: "It is a major, major pieces of legislation. You can't just do it overnight."

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Meanwhile, the Christina Noble Foundation expressed its appreciation yesterday to members of the public who had pledged support to the charity since this week's discovery that it may have been defrauded by up to €60,000. The foundation revealed on Monday that the Garda Fraud Squad was investigating the possible misappropriation of funds at the charity's Dublin office. A member of staff has been suspended pending the outcome of the investigation.

The discovery followed a review of the charity's audit and control procedures in October 2004.

About 6,500 organisations claim charitable status in the State for tax purposes. Half are registered as companies.

Regulation of the sector was first mooted in 1990 by the Committee on Fundraising Activities for Charitable and Other Purposes. Two other major reports in 1996 and 2002 made similar recommendations for regulation.

A further report has been commissioned by Mr Ahern on the impact of regulation on charitable trusts.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column