The Charity Finance Directors’ Group (CFDG) has given an enthusiastic welcome to the Strategy Unit Report ‘Private Action, Public Benefit’.
Following consultation with its 900 members, CFDG has supported the relaxation of the law to allow charities to undertake trading without the need for a separate trading company; welcomed the proposed creation of a Charitable Incorporated Organisation; and welcomed the recommendation for a standard information return (SIR) for charities with an income of over £1 million.
At the same time CFDG has expressed some concerns about some of the proposals set out in Private Action, Public Benefit. In relation to trading, CFDG have expressed specific concerns about the proposed duty of care and the need to amend tax law to ensure that any amendments are tax neutral.
It also expressed disappointment that the report ignored the impact of VAT on the sector, “one of the biggest issues holding back sector development”.
CFDG Chief Executive, Shirley Scott said: “It is vital that we iron out the details of the proposals and ensure that we get them right. If we don’t do this we actually risk damaging rather than raising public confidence. We hope and expect that CFDG will play a valuable role in further shaping and implementing the proposals, and in helping inform and educate the wider sector on how they can work within the newly proposed framework.”
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