Review of Charities Act 2006

Nick Hurd, Minister for Civil Society, has announced that Conservative peer Lord Hodgson of Astley Abbotts will lead a wide-ranging review of the Charities Act 2006. The review will consider issues including the role of the Charity Commission, the effectiveness of the charity tribunal, the success of the Fundraising Standards Board and the licensing regime for public charitable collections. Hodgson, president of the NCVO, has previously led the Big Society Deregulation Taskforce, the government-commissioned review of red tape in the voluntary sector. He also spoke for the Conservatives in the Lords when the 2006 act was going through Parliament. In his review of the Charity Act he will consider two main questions:

• The operation and effectiveness of the 2006 act.
• Whether further changes could be made to improve the legal and regulatory framework for charities.

The terms of reference of the review state that Hodgson will consider whether the legal framework for charities \"is fit for purpose now and in the future\" and will take into account political, economic, social and technological changes in the sector since the 2006 act was passed. The review \"should take a broad approach\", the terms state, and address three issues under the two main aims:

• What is a charity and what are the roles of charities?
• What do charities need to have/be able to do in order to be able to deliver those roles?
• What should the legal framework for charities look like in order to meet those needs?

According to the terms, the review should only make formal recommendations on the third issue. It should also consider 14 other areas, including:

• Thresholds for charity registration
• The Calman Commission recommendations in relation to a UK-wide definition of charity
• The effectiveness of organisational forms such as the charitable incorporated organisation
• The range of Charity Commission decisions that can be appealed to or reviewed by the charity tribunal.

Hodgson will gather evidence from the sector and other relevant stakeholders. In a statement, and produce a report before 2012's summer recess, which will be laid before parliament. He will work unpaid on the review for one day a week and be supported by officials from the Office for Civil Society and an expert charity lawyer brought in for up to one day per week. The Charities Act 2006 states that \"the minister must, before the end of the period of five years beginning with the day on which this act is passed, appoint a person to review generally the operation of this act\". It was passed on 8 November 2006.