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Samples of articles

As an example of the information that LMSC subscribers receive we have listed 3 sample articles, chosen at random, from our recent archive.

Door-to-door fundraising

Currently, National Exemption Orders (NEOs) allow 45 UK charities to carry out door-to-door fundraising and clothing and goods collections in certain local authority areas without having to apply for a licence each time they want to do so. The concern is that, where a charity is deemed to be generating insufficient returns from its door-to-door activities, the rules could give the Minister for Civil Society the power to take away its NEO.

The existing operational guidance says that the Minister may revoke an NEO if the charity spends an ‘inadequate’ proportion of the money it raises from door-to-door collections on charitable purposes or if any person is excessively remunerated from the proceeds of the collection. It asks charities to report the costs incurred by their collections, including printing, payments to contractors and the sums retained by fundraising agencies or clothes recycling companies, and to state the net profit ‘after expenses were taken out of the proceeds by the commercial partner’.

Third Sector reports that the Public Fundraising Association and the Charity Retail Association have expressed fears that because the guidance does not define what is an adequate proportion for expenses, it gives too much discretion to the Minister. At the same time, Civil Society reports that members of the Public Fundraising Association saw a 14 per cent drop in the number of donors recruited through door-to-door fundraising in the year to March 2016. PFRA members recruited a total of 594,000 donors through door-to-door canvassing: down 94,000 from 688,000 the previous year. At the same time,

One cannot help wondering if the two issues might be connected. Trust in the ‘charity brand’ has clearly been shaken in recent months and it is almost inevitable that that will have an impact on giving while, equally, ministers have both a political and a public interest in appearing to regulate the sector fairly – and the balance between discretion and rule-based regulation is a difficult one to strike.

Article information

  • Date: 22 June 2016 (Posted: 22 June 2016)

Of additional interest:

    US Foreign Account Tax Compliance Act: update on implementation

    In February we noted that the US Treasury and the US Internal Revenue Service had issued proposed Regulations for the next major phase of implementing the Foreign Account Tax Compliance Act (FATCA) 2010: Regulations Relating to Information Reporting by Foreign Financial Institutions and Withholding on Certain Payments to Foreign Financial Institutions and Other Foreign Entities. We said then that

    “every UK charity with direct or indirect US investments will have to consider how the proposed Regulations may apply in their circumstances. The proposed Regulations contain several exceptions which should mean that non-US charities will not be subject to withholding or the need to enter into IRS agreements provided that certain certifications are provided. We understand that the effect is not unlike the Treasury-HMRC “fit and proper person” test – but for everyone and not just those involved with charities (or charities themselves) and is similar to the requirement for EU charities to prove that they are legitimate organisations so that they can take advantage of the Double Taxation Treaties.  If UK charities that invest in the US do not ‘register’ – or whatever is required – then they will be caught”.

    We have now been told that HMRC is aiming to publish its updated Regulations and Guidance on FATCA on 17 May. The guidance will make it clear that


    • any entity registered as a charity with the Charity Commission of England and Wales or with OSCR;
    • any entity registered with  HMRC for charitable tax purposes; and
    • any Community Amateur Sports Club  registered as such with  HMRC


    will be exempted from reporting under FATCA and will not be obliged to register with the IRS.

    HMRC also says that Community Interest Companies should also be able to meet the criteria to be treated as a non-reporting by qualifying as a local Financial Institution, or as a Non-Financial Institution.  Other sports clubs etc should also fall to be treated as Non-Financial Institutions.

    Further, “conversations continue over the risk that other financial institutions might require charities to provide extra proof of their FATCA status”; but HMRC is clear that charities etc are not required to register with the IRS.

    We will report on the full guidance when it appears.

    Article information

    • Date: 10 May 2013 (Posted: 10 May 2013)

    Of additional interest:

      Licensing Consultation - Scotland

      On 8 October, the Scottish Executive opened consultation on the Licensing (Scotland) Act 2005 Draft Guidance and Regulations. Consultation will close on 8 December 2006.

      The proposals in chapter 5 for occasional licences may be of particular interest to subscribers in Scotland.

      The press release and link to the consultation letter and document can be found at the link below.


      Article information

      • Date: 10 October 2006 (Posted: 04 November 2006)

      Of additional interest:

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