New legislation will affect insurance cover
Howard Lake | 9 February 2009 | News
As the new Charities Bill passes through the Irish Seanad insurance companies have warned charities to review their policies.
Tighter regulations to be imposed on not-for-profit organisations will make directors and board members more accountable for finances.
Voluntary and community groups and social housing trusts will also have to register with a new regulatory authority under the Charities Bill.
Registration to keep charitable status requires handing over sets of financial accounts, the charity’s constitution, and details on how it intends to raise funds.
BHP Insurances, specialist brokers for the sector, warned liability cover for board members will be critical to protect executives and organisations from exposure to fraud or corporate malpractice.
The detail required for regulation varies depending on the size of the charity, with charities under €100,000 required to reach a less onerous standard.
BHP warned charities to start getting their affairs in order, or risk losing their charitable status making some insurance policies obsolete.
“Both Irish charities and voluntary forums have an excellent reputation, this bill will help ensure that this is maintained,” said BHP managing director Mark Phelan.
About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale.
He is the founder of Fundraising Camp and co-founder of GoodJobs.