Charities were today warned to put their books in order for a new law being introduced by the Government.
Tighter regulations to be imposed on not-for-profit organisations will make directors and board members more accountable for finances.
Voluntary and community groups and social housing trusts will also have to register with a new regulatory authority under the Charities Bill, which is being reviewed in the Seanad.
Registration to keep charitable status requires handing over sets of financial accounts, the charity’s constitution, and details on how it intends to raise funds.
It is understood the revamped regulations will bring a greater level of transparency to the sector.
Homeless agency Focus Ireland said there was no need for charities to fear the new Bill.
“Some smaller charities, in particular, have fears that the new legislation will result in an increase in administration and that they might not have sufficient resources to cope with the new requirements,” said spokesman Roughan McNamara.
“It is important to note that proportionality is a key element of the legislation and there will be varied reporting and audit requirements depending on whether a charity’s income or expenditure exceeds €100,000.”
Mr Roughan said it is important all funders and donors see exactly how and when money is spent.
PA