Charities Bill [HL]

Baroness Prashar Excerpts

Wednesday 7th July 2021 Grand Committee

[Baroness Prashar (CB) [V]]

My Lords, I refer to my interests as in the register. I welcome these measures to make charity regulation more effective. As a nation, we owe our charity sector a legal framework that is clear and unambiguous. These measures will make it easier for charities to navigate the law and carry out their functions effectively while retaining important safeguards.

I welcome the introduction of greater flexibility with regard to fundraising appeals. Ensuring that donations go towards the purpose intended, or as close as possible, is important, as is the trust between the donor and the charity. This change strikes the right balance. However, it would be helpful to monitor the use of this power with a view to raising the limits in the Bill.

Several changes to provide additional clarity around permanent endowments and the extension of the toolbox available to trustees in seeking to further their charitable purposes are helpful, too. Powers relating to the appointment of trustees, payment of trustees, clarity regarding transfer of gifts following a merger, and making it easier for charities to amend governing documents to dispose of land efficiently are all very sensible.

Good governance of charities is crucial both for accountable stewardship of resources and for retention of public confidence. It will, therefore, be important to ensure that the Charity Commission, as a regulator, is properly resourced and has the capacity to help implement these changes and, where necessary, to keep the changes under review.

Charities are facing difficult times dealing with the recovery from the pandemic. Some 85% of charities expect to be delivering services at pre-pandemic levels this year, but fewer than half expect a return to pre-Covid fundraising levels. If it is the Government’s role to unlock the potential within civil society, we need much greater and stronger leadership from government to support civil society to develop capacity, capability and resilience.

While these changes are really very welcome, it would be helpful to know what steps the Government will take to grow the levels of giving and philanthropy in this country. Increased giving can help charities adapt to changing circumstances brought about by the pandemic, but giving will not grow spontaneously. To build on the necessary changes in this Bill, the Government need to find ways to mobilise greater giving. It would be helpful if the Minister could take forward the need to increase giving and say what steps are being taken to increase giving along with these changes.