PUBLIC REPORTING PROTECTION OF THE COMMON GOOD

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PUBLIC REPORTINGPROTECTION OF THE COMMON GOOD

• Des Lamont
• LP Financial Trustees Limited

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The Progression in History

• Charities developed to meet Society needs
• Society encouraged involvement of Charities
• (Irish) Society became dependant on Charities
• Charities acquired a unique niche in Society
• Unique status created influence benefits
• Some misuse of status benefits of Charities
• Society demands public explanation of status

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Conventional Wisdom (in Ireland)

• Assumes that...
• Charities depend on Generosity of Public
• Employees are mostly Volunteer
• Most Charities are Part-time Activities
• Trustees are charismatic do-gooders
• Charities have very Limited Assets
• Administration and Management is Minimal

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Reality of Charities in Ireland

• Essential Components of Society
• 1,000 Primary Schools
• 500 Secondary Schools
• 5 Universities
• 50 Hospitals 200 Nursing Homes
• 20 National Centres for Disabilities
• 60 National Amateur Sports Associations
• 300 Sports Social Clubs

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Reality of Irish Charities

• International Face of Ireland
• Emergency Aid to Disasters
• Assistance to the Developing World
• Providing Schools Hospitals and Clinics
• Rescuing the Homeless and Destitute
• Leading Development of Communities
• Apolitical Support for the Oppressed

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A Comment overheard..

• Calling for Charity Legislation in the 1980s
  was like going round stirring up apathy
• A Retired Irish Judge

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Where we are

• White Paper (2001)
• Law Society Report (2002)
• Government Consultation Paper (Dec 2003)
• Government Promise of Act (June 2005)

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Where we are going

• (No political insight just an LP estimate)
• A Two Year Lead Time?
• March 2006 Government Decision
• October 2006 Draft Bill
• January 2007 Legislation in Force
• Post January 2008 Public Reporting
• What we anticipate seldom occurs
• What we least expected, generally happens
• Benjamin
  Disraeli

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A Definition to Ponder

• A Liberal is a Person whose Interests are not at
  stake
• at the moment
• Adlai Stevenson US Politician

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LP Support Charity Legislation

• Why?
• Charities are Supported by the State
• - Taxation and other Reliefs
• Charities are not Private Activities
• Charities should show Public Benefit
• Public Support will ensure Continuity

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LP Support Charity Legislation

• What Form?
• MandatoryAnnual Public Reports
• Audited Accounts
• Corporate Structure
• Why?
• Public Scrutiny is the best watchdog
• - The Pensions Board experience in Ireland
• External Oversight gives Public Confidence
• Structure encourages Governance Planning

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Legislation Probable Impact

• Widespread Public Support for Legislation
• Cultural Change - regulation and monitoring
• - Accounts and Annual Report
• Public Reporting will alter Perception
• Some Charities will cease to exist
• Nothing is more Annoying than to be Obscurely
  Hanged
• 
  Voltaire

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The Future - Our View

• A Public face on Private endeavour
• A Good Story to be told
• A Cohesive Picture of Nationwide Activity
• - What you have
• - How you use it and who you help
• Justification of Good Stewardship

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What to do Now

• Review all your Activities
• Do your activities reflect your Objectives?
• What is the Public Benefit?
• Is benefit Limited to a Specific Group?
• Do any of your Activities Discriminate?
• Are your Services provided by the State?

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What to do Now

• Review your Governance
• Do you have a legal Structure?
• Does it operate?
• Do you operate in accordance with Law?
• Do you discharge your Powers and Duties?
• Will your Governance stand Public Scrutiny?
• Does your Governance plan for succession?
• Well jump off that Bridge when we Come to it
• 
  Sam Goldwyn

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What to do Now

• Review your use of Resources
• Can you list all your Resources?
• People
• Property
• Finance
• Are all your Resources actively used?
• Are they used for Charitable Purposes?
• For how long will resources be available?
• Why is there so much Month left at the End of the
  Money?
• 
  Homer Simpson

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What to do Now Some Problems

• Resources used by Others
• Properties Licenced or Leased to 3rd Parties
• Overseas Activities not Monitored
• Inadequate Financial accounting
• - Income donations, bequests, deposits
• - Expenditure not monitored, not receipted
• Administration and Management
• Legal Claims, Compensation, Insurance
• Employment, Health and Safety, Pensions
• Advocacy and Communication

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What to do Now Some Solutions

• Review the Scope of Charitable Works
• What you can do and sustain
• Seek Partners or Collaboraters
• Devise and Communicate Future Strategy
• Recognise your Public Role
• Use current discretion to Resolve Problems
• Dont Panic or Ignore Difficulties!
• These are next years Good Old Days
• Woody
  Allen

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Overview

• Introduction of Legislation will be Gradual
• Legislation will Protect the Good
• Public Scandals damage all Charities
• Preparation is Essential, Resistance is Futile
• Public Knowledge will increase Confidence
• Public Confidence will Increase Support
• Good Stories gain in their Telling - Anon

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But what if

• Because of these New Laws,
• We dont want to be a Public Charity!

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Your Sole Option

• Donate Everything to some other Charity
• Revert to a Group of Voluntary Individuals
• Lose Discretion to Exercise Charitable Works
• Taxation on every Donation and Asset
• Endure Public suspicion of your Motives

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PUBLIC REPORTINGPROTECTION OF THE COMMON GOOD

• Des Lamont
• LP Financial Trustees Limited