Regulating Charitable Solicitation Practices – The Search for a Hybrid Solution

Abstract

A review of four fundraising regulatory models currently in existence in common law jurisdictions reveals a mismatch between the stated policy goals that these models set out to achieve and the practical, albeit unintended, consequences that flow from the implementation of these models. The paper highlights some of these policy/implementation discords. It proposes a hybrid model, which is designed to resolve some of these inconsistencies, and considers the potential for the model's practical application in one of the jurisdictions surveyed, Ireland.

Differentiated regulation: the case of charities

“…In addition, given the reports of staff acting opportunistically with governments' and donors' funds, and inaccurate reporting or manipulation of financial disclosures (Gibelman and Gelman, ; Desai and Yetman, ; Leone and Van Horn, ; Yetman and Yetman, ; Hofmann and McSwain, ; Phillips, ; Sinclair et al ., ), calls for increased regulation are unsurprising. Various regulatory practices (including publication of financial statements) may increase public trust and confidence in this sector and potentially increase donations of time and money (philanthropy) (Keating and Frumkin, ; Breen, ).…”

Charity registration and reporting: a cross-jurisdictional and theoretical analysis of regulatory impact

“…Miscreants are located when, for example, a charity regulator monitors inappropriate application of charitable funds (Breen 2009;Phillips 2013;Irvin 2005) or checks for inappropriate amassing of tax-free assets by philanthropists (Frumkin 1998). Public complaints and regulators' investigations (Cordery, Sim, and van Zijl 2017) also result in charity de-registration.…”

The Palgrave Handbook of Global Philanthropy

“…There is no requirement under charity law for a charity to file annual accounts or an annual report of activities. The statutory requirements relating to fund-raising regulation date back to the 1960s and are outdated and inconsistent in their approach (Breen, 2009(Breen, , 2012. The Department of Justice hopes to begin implementation of the Charities Act in 2013-2014 and has carried out a public consultation process upon the best way to move forward in economically constrained times (Department of Justice, Law Reform and Equality, 2013).…”