Charities Act 2009

In January 2014, The Minister for Justice, Alan Shatter, indicated that an interim Charity Regulator will be appointed, ahead of the establishment of the Charities Regulatory Authority before Easter.  

The Minister stated that “the recent revelations about certain organisations in the charitable sector have understandably damaged public trust and confidence.

The commencement of the key measures in the Charities Act will provide the increased transparency and accountability that will allow this trust to be rebuilt.”

The Regulator will be tasked with immediately setting up a statutory Register of Charities

All organisations with a Revenue Commissioners CHY number will be on the Register of Charities.

Some organisations who have more than one CHY number will need to consider if their charitable activities require them to have multiple CHY numbers. Will they want multiple registrations on the Charities Register with the resulting reporting requirements?

Some organisations with multiple activities presently being undertaken under one CHY numbers may need to consider if it would be more appropriate to have some activities in separate charities for reporting purposes

Statement of Recommended Practice for Charities 2005 (SORP)

The Statement of Recommended Practice for Charities 2005 (SORP) is not mandatory in Ireland. It is regarded as best practice and many charities in Ireland prepare their annual accounts based on the SORP.

It is expected, (although not yet confirmed) that Charities will be required to file  accounts that have been prepared in accordance with the SORP.  The current SORP 2005 (available here) is being revised. The revised SORP is available as an Exposure Draft and is going through the final consultation process.

The revised SORP is expected to be issued by the end of June 2014 and, if it becomes mandatory, it will be applicable to accounting years commencing after 1st January 2015.

The revised SORP will contain some changes to the Trustees Annual Report, to the income and expenditure headings in the Statement of Financial Activities and the disclosures required in the notes.

O’Brien Harnett & Associates continue to assist our clients in preparing to meet their obligations under the Charities Act, preparing SORP compliant accounts and advising on CHY tax related issues.

If you want to discuss any of these matters we are happy to take your call.