OSCR Annual Report

In its Annual Report & Accounts 2009 – 2010, the Office of the Scottish Charity Regulator (OSCR) stated that there is a need for a “fundamental review” of certain parts of the Charities & Trustee Investment (Scotland) Act 2005.

OSCR is the independent regulator and Registrar of charities in Scotland. It regulates over 23,500 Scottish charities, ranging from community groups, schools and universities to museums and major care providers.

As well as keeping a public register of all the charities in Scotland, OSCR facilitate and monitor compliance by charities with the provisions of the 2005 Act.

In its Annual Report, OSCR highlighted that a number of changes were required to be made to the 2005 Act due to “the difficulties around its interpretation and application”.

OSCR made a number of recommendations, which include:-

1. Section 31 of the 2005 Act should be amended to permit OSCR to direct charity trustees to undertake specific actions to protect charitable assets or address misconduct. Section 31 of the 2005 Act relates to OSCR’s powers when making enquiries with a charity. If OSCR, as a result of their enquiries, ascertain that there has been misconduct in the administration of the charity, it can suspend any person involved in the management or control of the charity, or may direct the charity to stop carrying out the action.  The amendment to Section 31 being sought by OSCR provides them with the further power to direct charity trustees to undertake specific actions to protect the charitable assets or address misconduct.
2. The Charity Test should be expanded to require an applicant body or charity to have some connection with Scotland.
3. Organisations engaged in public collections should be required to positively state whether or not they are a charity.
4. Section 17 of the 2005 Act should be extended to require that a charity giving notification of a change of their principle office or contact need also provide a alternative principle office or address at the same time of this notification.

OSCR have also stated that in addition to their above recommendations, a wider review of the 2005 Act is required and that such a review could form the basis of any future legislative change in charity law.

Their Annual Report recommends “that a wider review of the 2005 Act be included in the Government’s timetable within the next five years”.

For further information on changes to charity law or how OSCR regulations affect your charity please contact Andrew Arnott.

Disclaimer: This information in this publication is based on our current understanding of the law. It has been produced for information purposes only. Professional advice should always be sought before taking any action.

Macleod & MacCallum cannot take any responsibility for loss incurred through acting or failing to act on the basis of anything contained in this publication.