Proposed Charity Commission funding model: charities to pay for their regulation?

Once again, the idea of charities paying for their own regulation has been raised. As the newly elected government prepares for a new wave of austerity, the Charity Commission is no doubt worried at the prospect of further cuts. Statistics show the Charity Commission’s budget has been cut by 50% over the past 10 years and its number of staff has halved.

Andrew Hind, a former Chief Executive of the Charity Commission, has recently suggested that the only viable alternative is for the sector to pay for its regulator and align itself with the standard regulatory funding model operating in almost every other sector.

How this would work remains unclear. Suggestions include requiring the largest charities to foot the bill, or, enabling the Commission to collect a portion of Gift Aid.

For more information on charity regulation, please contact our charity law solicitors on 01895 207809 or email charities@ibblaw.co.uk.