15 October 2013

Charity Commission accepts Public Accounts Committee recommendations regarding the Cup Trust


On 4 June 2013 the Public Accounts Committee published a report examining the Cup Trust and the Commission’s procedures for regulating charities, which made various recommendations as to steps that should be taken by the Commission. The Commission has confirmed that it has accepted all of the Public Accounts Committee’s recommendations and has indeed already implemented many of them.

As regards the Cup Trust itself, the Commission stated that it had reviewed its conclusion that the Cup Trust meets the legal definition of a charity and had reached the same conclusion. The Commission explained that it ‘had to register the Cup Trust, since it was legally established for exclusively charitable purposes for public benefit and fell within the jurisdiction of the High Court’. The Commission stated that it was currently unable to publish the justification for its decision as this was subject to a statutory inquiry, but confirmed that it intends to publish this information as part of the report of the inquiry when it is concluded.

The Commission also responded to the Public Accounts Committee’s recommendation that it should liaise with HMRC before registering any charities where there are ‘red flags’ that raise concerns by confirming that it is working increasingly closely with HMRC and that it is developing a joint portal to apply simultaneously for registration as a charity with the Commission and recognition as a ‘charity for tax purposes’ by HMRC. The Commission added that it has developed its registration processes since the Cup Trust scandal and has established a new risk framework and assessment process, which identifies as high risk any complex structures, including links to other companies.

The Commission’s full response can be read online here.

Category: Article