Major changes to English charity laws proposed in government report.

LONDON -- England's 400-year old charity laws are certain to undergo major changes once a three -month consultation and review process is completed later this year. The same laws have influenced policy and practice in countries guided by English legal traditions.

The British government released its review, Private Action, Public Benefit: a review of charities and the wider not-for-profit sector, of the charity laws and the legal and regulatory framework governing charities and the greater non profit sector in the country. The report, with an introduction by Prime Minister Tony Blair, contains 61 reccommendations. It is anticipated that some changes suggested in the report will require legislation and could take up to three years to complete.

Among important changes suggested by the report is a recommendation that charities that charge large fees for services, such as public schools and private hospitals, will have to demonstrate their existence is of benefit to the public. Otherwise, their charitable status could be revoked by a newly created Charity Regulation Authority, which would replace the current Charity Commission for England and Wales. (Scotland is also considering changes in its charity laws.)

The Authority, which would be created through legislation, would also fill under greater public scrutiny by requiring it to meet legislative objects, open Board meetings and an Annual General Meeting.

As well, an independent tribunal would be established to allow charities to challenge the Authority's decisions.

Larger charities with an income of more than 1 million [pounds sterling] ($Can 2.5 million) would be required to provide a yearly Standard Information Return to the Authority. This return along with other requirements are designed to increase public accountability and more accessible public information.

Fundraising by charitable organizations would also be more tightly regulated by a new independent body, that would be self regulating and initially funded by the government. Later, charities would pay a fee to be eligible to fundraise. Although the report proposes that this sign-up be voluntary, it suggests that this could be legislated, if certain fundraising techniques, such as face to face soliciting, continue.

The current definitions for charitable organizations would be expanded and replaced from the existing four definitions to ten new categories. These would allow organizations, such as amateur sports clubs, social companies and recycling groups, to register as Charities. There would also be a new status for small charities, which would exempt them from some of the other newly proposed regulations for charities.

The report also suggests the need for new, improved legal forms that are better suited for charitable organizations. These new forms would protect charitable organization's assets while at the same time "offer a strong identity in which the public and funders can have confidence". For instance, charities would be able to incorporate under a new form, Charitable Incorporated Organization, which would be specifically designed for charitable organizations.

Recognizing that charities "perform a valuable role in campaigning for social change", the reports recommends that guidelines on campaigning by charitable organizations be changed to "encourage charities to play this role to the fullest extent".