Charities (Amendment) Act 2024

PART 1 Preliminary and General

1. Short title and commencement

1. (1) This Act may be cited as the Charities (Amendment) Act 2024.

(2) This Act shall come into operation on such day or days as the Minister for Rural and Community Development may appoint by order or orders either generally or with reference to any particular purpose or provision and different days may be so appointed for different purposes or different provisions.

2. Definition

2. In this Act, “Principal Act” means the Charities Act 2009.

PART 2 Amendment of Principal Act

3. Amendment of section 2 of Principal Act

3. Section 2 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the substitution, in the definition of “charitable organisation”, of “Part 6A” for “section 89”,

(ii) by the substitution, in the definition of “charitable trust”, of “Part 6A” for “section 89”,

(iii) by the substitution of the following definition for the definition of “charity trustee”:

“ ‘charity trustee’ includes—

(a) in the case of a charitable organisation that is a company—

(i) any director of the company,

(ii) any other person in accordance with whose directions or instructions the directors of the company are accustomed to act, unless the directors are accustomed so to act by reason only that they do so on advice given by the person in a professional capacity, and

(iii) any other person who occupies the position of director of the company but who has not been formally appointed as such, unless the person only gives advice in a professional capacity to the company or any directors of it,

but does not include a person who is the company secretary, unless he or she is also a person referred to in subparagraph (i), (ii) or (iii),

(b) in the case of a charitable organisation that is a body corporate (other than a company) or an unincorporated body of persons—

(i) any person who, in relation to that body, is—

(I) a member of the board, or

(II) a member of the governing body,

(ii) any other person in accordance with whose directions or instructions a person referred to in subparagraph (i) is accustomed to act, unless such person is accustomed so to act by reason only that they do so on advice given by that person in a professional capacity, and

(iii) any other person who occupies the position of member of the board or member of the governing body but who has not been formally appointed as such, unless the person only gives advice in a professional capacity to the charitable organisation or any members of the board or members of the governing body,

but does not include a person who performs the functions of a secretary to the board or to the governing body, unless he or she is also a person referred to in subparagraph (i), (ii) or (iii), and

(c) in the case of a charitable trust to which section 54A(2) applies, the body corporate and the directors of that body corporate,

and references to a charity trustee of a charitable organisation shall be construed as including references to a trustee of a charitable trust;”,

(iv) by the substitution of the following paragraph for paragraph (b) of the definition of “constitution”:

“(b) in the case of a charitable organisation that is a company, the constitution (within the meaning of section 2(1) of the Act of 2014),”,

(v) in the definition of “education body”—

(I) by the insertion in paragraph (e) of “or” after “Act of 1998,”,

(II) by the substitution in paragraph (f) of “of that Act;” for “of that Act, or”, and

(III) by the deletion of paragraph (g),

(vi) by the substitution, in the definition of “registration number”, of “section 39(7)(e) or 40(6)(e), as the case may be;” for “section 40(6)(e);”, and

(vii) by the insertion of the following definitions:

“ ‘Act of 2014’ means the Companies Act 2014;

‘authorised officer’ has the meaning assigned to it by section 68A(1);

‘balance sheet total’, in relation to a charitable organisation, means the aggregate of the amounts shown as assets in the organisation’s balance sheet;

‘insolvency arrangement’ has the same meaning as it has in the Personal Insolvency Act 2012;

‘member of the charitable organisation’ means—

(a) in the case of a charitable organisation that is a company, a member of the company within the meaning of section 168 of the Act of 2014, or

(b) in the case of a charitable organisation that is a body corporate (other than a company) or an unincorporated body of persons, a person who is entitled to appoint, nominate or vote for the appointment of a person as a charity trustee of that organisation;

‘removal notice’ has the meaning assigned to it by section 44A(5)(b);

‘specified clause’ has the meaning assigned to it by section 42A(8);”,

and

(b) in subsection (2)—

(i) by the substitution, in paragraph (a), of the following subparagraph for subparagraph (i):

“(i) a person is connected with an individual if that person is a child, step-child, parent, step-parent, brother, sister, spouse, civil partner, cohabitant, grandparent or grandchild of the individual or a child of the individual’s civil partner or cohabitant,”,

and

(ii) by the substitution of the following paragraph for paragraph (b):

“(b) In this subsection—

‘Act of 2010’ means the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010;

‘civil partner’ means a person in a civil partnership or legal relationship to which section 3 of the Act of 2010 applies;

‘cohabitant’ means a cohabitant within the meaning of section 172(1) of the Act of 2010;

‘control’ has the meaning assigned to it by section 11 of the Taxes Consolidation Act 1997.”.

4. Amendment of section 3 of Principal Act

4. Section 3 of the Principal Act is amended—

(a) in subsection (1)—

(i) by the deletion of paragraph (d), and

(ii) by the insertion of the following paragraphs after paragraph (d):

“(e) the advancement of community welfare including the relief of those in need by reason of youth, age, ill-health or disability;

(f) the advancement of community development, including rural or urban regeneration;

(g) the promotion of civic responsibility or voluntary work;

(h) the promotion of health, including the prevention or relief of sickness, disease or human suffering;

(i) the advancement of conflict resolution or reconciliation;

(j) the promotion of religious or racial harmony and harmonious community relations;

(k) the protection of the natural environment;

(l) the advancement of environmental sustainability;

(m) the advancement of the efficient and effective use of the property of charitable organisations;

(n) the prevention or relief of suffering of animals;

(o) the advancement of the arts, culture, heritage or sciences;

(p) the integration of those who are disadvantaged, and the promotion of their full participation, in society;

(q) the advancement of human rights;

(r) any other purpose that is of benefit to the community, where that purpose is similar to any of those listed in paragraphs (a) to (q).”,

and

(b) by the deletion of subsection (11).

5. Amendment of section 28 of Principal Act

5. Section 28 of the Principal Act is amended—

(a) by the substitution, in subsection (1), of “that an offence, other than an offence under this Act, has been” for “that an offence has been”,

(b) by the insertion of the following subsection after subsection (1):

“(1A) The Authority may provide, to a person specified in paragraph (a), (b), (c), (d) or (e) of subsection (1), any information obtained by it in the performance of its functions that causes the Authority to suspect that an offence under this Act has been committed by a charity trustee or a charitable organisation.”,

and

(c) by the substitution, in subsection (2), of “subsection (1) or (1A)” for “subsection (1)”.

6. Amendment of section 33 of Principal Act

6. Section 33 of the Principal Act is amended—

(a) by the substitution of “relevant bodies” for “relevant regulators” in each place where it occurs,

(b) by the substitution of “relevant body” for “relevant regulator” in each place where it occurs, and

(c) in subsection (6), by the insertion of the following definition:

“ ‘relevant body’ means—

(a) a relevant regulator, or

(b) a body, or holder of an office, who carries out functions relating to the oversight or monitoring of charitable organisations (where the body or office is prescribed by order of the Minister);”.

7. Amendment of section 39 of Principal Act

7. Section 39 of the Principal Act is amended—

(a) by the insertion of the following subsection after subsection (4):

“(4A) An organisation that becomes a charitable organisation by virtue of section 3(1)(q) shall, if it wishes to continue to operate or carry on activities in the State after the commencement of section 4(a)(ii) of the Charities (Amendment) Act 2024, apply, not later than—

(a) 6 months, or

(b) the expiration of such longer period as the Minister may specify,

after such commencement to the Authority to be registered.”,

(b) in subsection (5)—

(i) by the insertion, in paragraph (b), of “or the United Kingdom” after “EEA state” in each place where it occurs,

(ii) in paragraph (c)—

(I) by the insertion, in subparagraph (i), of “or the United Kingdom” after “EEA state”, and

(II) by the substitution of “in the state referred to in subparagraph (i)” for “in that EEA state”,

(iii) by the substitution of the following paragraph for paragraph (d):

“(d) specify the name, address, e-mail address and telephone number of each charity trustee,”,

(iv) by the insertion of the following paragraph after paragraph (d):

“(da) be accompanied by—

(i) documentary proof of address for each charity trustee, and

(ii) a declaration in writing made by each charity trustee, in such form as may be specified by the Authority, stating that he or she is not disqualified for the position of charity trustee under section 55,”,

and

(v) by the substitution, in paragraph (l), of “children or vulnerable persons (within the meaning of the National Vetting Bureau (Children and Vulnerable Persons) Act 2012)” for “vulnerable people (including the aged, children and young people, the sick, disabled and handicapped)”,

(c) by the deletion of subsection (6),

(d) by the insertion of the following subsections after subsection (6):

“(6A) Where the Authority considers that an application does not satisfy the requirements of subsection (5), the Authority may by notice in writing require the applicant to provide it with specified information or documents, not later than 21 days after the date of the notice, or such longer period as the Authority may specify.

(6B) Where information or documents required by the Authority under subsection (6A) are not provided by the applicant within the period referred to in that subsection, or within the period as specified by the Authority, the application under this section shall be deemed to be withdrawn.”,

(e) in subsection (7)—

(i) by the substitution of “subsections (6B), (8) and (14)” for “subsections (8), (13) and (14)”,

(ii) in paragraph (a)—

(I) by the insertion of “or the United Kingdom” after “EEA state” in each place where it occurs, and

(II) by the substitution of “charitable organisation and its principal place” for “charitable organisation, its principal place”,

(iii) in paragraph (b)—

(I) by the insertion, in subparagraph (i), of “or the United Kingdom” after “EEA state”, and

(II) by the substitution of “in the state referred to in subparagraph (i)” for “in that EEA state”,

(iv) by the deletion, in paragraph (f), of “and”,

(v) by the insertion of the following paragraph after paragraph (f):

“(fa) the constitution of the charitable organisation, and”,

and

(vi) by the substitution, in paragraph (g), of “information” for “particulars”,

(f) by the substitution of the following subsection for subsection (9):

“(9) Where the Authority makes a decision to grant an application under this section, it shall, as soon as may be thereafter, notify the applicant in writing of—

(a) the decision, and

(b) any condition attached to the registration, including—

(i) the reason for the condition,

(ii) the date by which such condition is to be complied with, if applicable, and

(iii) the entitlement under section 45(1A) to appeal the decision to attach the condition.”,

(g) by the deletion of subsection (11),

(h) by the insertion of the following subsections after subsection (11):

“(11A) A registered charitable organisation shall, as soon as may be, notify the Authority in writing where—

(a) the charitable organisation breaches or fails to comply with a condition attached to the registration under subsection (9)(b),

(b) information or a particular entered in the register in accordance with subsection (7) ceases to be correct,

(c) information or a particular provided in an application under this section in respect of a charity trustee ceases to be correct,

(d) it is proposed to wind up the charitable organisation or to cease its operations, or

(e) there is a resignation or appointment of a charity trustee.

(11B) A notification under subsection (11A) shall be in such form as may be specified by the Authority and shall be accompanied by the following particulars—

(a) in the case of a notification pursuant to paragraph (d) of subsection (11A), by—

(i) a statement of the assets and liabilities of the charitable organisation, and

(ii) particulars of any proposed transfer of the assets of the charitable organisation,

or

(b) in the case of a notification pursuant to paragraph (e) of subsection (11A), by the declaration referred to in subsection (5)(da)(ii) in respect of the appointment of a new charity trustee.

(11C) Without prejudice to the generality of subsection (11B), the Authority may, following a notification under subsection (11A), require the charitable organisation to provide it with specified information or documents within such period as the Authority may specify.”,

(i) by the substitution, in subsection (12), of “information or particular” for “particular”,

(j) by the deletion of subsection (13),

(k) by the substitution, in subsection (15), of “this section” for “that subsection”, and

(l) by the insertion of the following subsections after subsection (17):

“(18) Where, in relation to a charitable organisation that is a body corporate, there is a contravention of subsection (3) or (11A), the body corporate shall be guilty of an offence.

(19) Where, in relation to a charitable organisation, there is a contravention of subsection (3) or (11A), the charity trustees shall each be guilty of an offence.

(20) The following provisions do not apply to an education body—

(a) paragraphs (d), (da) and (l) of subsection (5), and

(b) subsections (11A) to (11C).”.

8. Amendment of section 40 of Principal Act

8. Section 40 of the Principal Act is amended—

(a) by the deletion, in subsection (2), of “or procurement”,

(b) by the substitution of the following subsection for subsection (4):

“(4) The Authority may, by notice in writing, require a charitable organisation to which subsection (1) applies to provide it, not later than 14 days after the date of the notice, or such longer period as the Authority may specify, with all or any of the information, particulars or documents that the organisation would be required to so provide if it were an applicant under section 39.”,

(c) in subsection (6)—

(i) by the substitution of “subsection (4)” for “subsection (3)”,

(ii) in paragraph (a)—

(I) by the insertion of “or the United Kingdom” after “EEA state” in each place where it occurs, and

(II) by the substitution of “charitable organisation and its principal place” for “charitable organisation, its principal place”,

(iii) in paragraph (b)—

(I) by the insertion, in subparagraph (i), of “or the United Kingdom” after “EEA state”, and

(II) by the substitution of “in the state specified in subparagraph (i)” for “in that EEA state”,

(iv) by the deletion, in paragraph (f), of “and”,

(v) by the insertion of the following paragraph after paragraph (f):

“(fa) the constitution of the charitable organisation, and”,

and

(vi) by the substitution, in paragraph (g), of “information” for “particulars”,

and

(d) by the insertion of the following subsections after subsection (6):

“(7) A charitable organisation that is deemed to be registered under subsection (1) shall, as soon as may be, notify the Authority in writing where—

(a) information or a particular entered in the register in accordance with subsection (6) ceases to be correct,

(b) information or a particular provided to the Authority in respect of a charity trustee ceases to be correct,

(c) it is proposed to wind up the charitable organisation or to cease its operations, or

(d) there is a resignation or appointment of a charity trustee.

(8) A notification under subsection (7) shall be in such form as may be specified by the Authority and shall be accompanied by the following particulars—

(a) in the case of a notification pursuant to paragraph (c) of subsection (7), by—

(i) a statement of the assets and liabilities of the charitable organisation, and

(ii) particulars of any proposed transfer of the assets of the charitable organisation,

or

(b) in the case of a notification pursuant to paragraph (d) of subsection (7), by the declaration referred to in section 39(5)(da)(ii) in respect of the appointment of a new charity trustee.

(9) Without prejudice to the generality of subsection (8), the Authority may, following a notification under subsection (7), require the charitable organisation to provide it with specified information or documents within such period as the Authority may specify.

(10) A person who, in purported compliance with this section, knowingly or recklessly provides information or a particular to the Authority that is false or misleading in a material respect, or who believes any such information or particular when provided by him or her, in purported compliance with this section, not to be true, shall be guilty of an offence.

(11) Where, in relation to a charitable organisation that is a body corporate, there is a contravention of subsection (4) or (7), the body corporate shall be guilty of an offence.

(12) Where, in relation to a charitable organisation, there is a contravention of subsection (4) or (7), the charity trustees shall each be guilty of an offence.

(13) Subsections (7) to (9) do not apply to an education body.”.

9. Change of charitable purpose and amendment of constitution