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Amend the Charities Act so that 90% of donations go to the stated cause

Comment 11th July 2010

There is a great deal of public concern that Charities are not passing on the donations they receive to the stated cause.

People feel their valuable donations are being burnt up in unnecessary administration, fat cat directors salaries or are being redirected to less worthy causes. In the event of a natural disaster the default response of some British Charities is to send a media spokesperson to ask for money in front of a Medicine San Frontier tent.

The Charities Act should be amended so that it is requirement of charitable status that 90% of donations received (including the sale of non-monetary donations) should be given to the stated cause. The stated cause(s) should be stated in the registration document. If the Charity appeals for funds on a specific cause then 90% of the resulting donations should go to that specific cause.

Why does this matter?

To restore the publics' confidence in charitable giving.

To bring relief to those in need.

To prevent the use of Charities to avoid paying tax

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