Charitable Registration

Jesse Norman Excerpts

Tuesday 13th November 2012 Westminster Hall

[Fiona Bruce (Congleton) (Con)]

I declare an interest, entered on the Register of Members’ Financial Interests, as a partner of a law firm that carries out a modest amount of charity law work, although, as may become patently clear in my speech, I have never specialised in that field. I recently had to take a crash course on charity law, and I apologise for any errors in my understanding of what is a far from simple field.

I am heartily encouraged by the number of Members attending this debate; it is the most I have ever seen in a Westminster Hall debate. In fact, there are so many Members that some are having to sit on the side. Many Members have said that they support my concerns on this matter.

If an organisation wishes to be registered as a charity, it both has to have charitable purposes and be of public benefit. The Charities Act 2006 states that it is not to be presumed that a purpose is for public benefit, so organisations applying to the Charity Commission for registration now have to demonstrate public benefit—something that comprises two elements: whether the nature of the charitable purpose is of benefit to the community, and whether those who may benefit constitute a section of the public. Charities that would previously have been registered without needing to demonstrate public benefit now need to do so.

In a debate in the House on the 2006 Act, the then Minister for the Cabinet Office said:

“The Bill preserves the existing law on the definition and test of public benefit, with one change. Under the existing law, there is the presumption that charities established for the relief of poverty, the advancement of education or the advancement of religion are for the public benefit… The Bill abolishes that presumption.”

The critical phrase is that

“The Bill preserves the existing law on the definition and test of public benefit”.—[Official Report, 26 June 2006; Vol. 448, c. 24-25.]

I shall refer to that in a moment.

The Charity Commission has the job of registering charities and applying the public benefit test to those charities that previously would have been exempt. One such charity is the Preston Down Trust of the Plymouth Brethren—a religious charity. In the main, I will confine my speech to public benefit as it relates to religious charities, as opposed to charities that relieve poverty or advance education, both of which have recently been the subject of charity tribunal cases.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

I congratulate my hon. Friend on securing this debate and on the number of colleagues in attendance. I share her views, and I will quickly speak for the Plymouth Brethren in my patch. Is she aware of the large amount of research on the social and community benefits of moderate religious observance? Is there not a case, therefore, for moving back towards the wider definition of social benefit that we had historically in this country?

[Fiona Bruce]

Yes, I very much agree. It is an enormous burden for organisations such as the Plymouth Brethren to have to prove public benefit, as I will demonstrate.