How Well Do You Know Charity Regulation?

1.

Around how many charities are currently registered with the Charity Commission?

A.

28,000
B.

108,000
C.

180,000
D.

280,000

Correct Answer
C. 180,000

2.

A statutory inquiry is the highest level of inquiry that the Charity Commission can undertake.

A.

True
B.

False

Correct Answer
A. True

3.

The Charity Commission will not investigate charities which are under police investigation.

A.

True
B.

False

Correct Answer
B. False

Explanation
The Charity Commission is not empowered to investigate criminal matters and may be asked by the police to halt its investigations while they undertake criminal proceedings. However this is not always the case and the Charity Commission can often run its investigations at the same time as criminal investigations. The Charity Commission will continue with non-criminal investigations that affect the reputation or running of a charity, regardless of other investigations.

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4.

What is a CC47?

A.

Accounting guidance
B.

Charity complaints guidance
C.

Merger guidance
D.

Fundraising guidance

Correct Answer
B. Charity complaints guidance

5.

What is the name of the annual report the Charity Commission publishes on its regulation activity?

A.

Back on track
B.

Charity regulation annual report
C.

Behind the facade
D.

Making it right

Correct Answer
A. Back on track

6.

Charities with an annual income over what amount should register with the Charity Commission?

A.

£5,000
B.

£10,000
C.

£20,000
D.

£30,000

Correct Answer
A. £5,000

7.

In which of these circumstances would you NOT need to register your charity with the Charity Commission?

A.

Over 90 per cent of income is from individuals
B.

Over 90 per cent of income is from the public purse
C.

It is regulated by another organisation, ie a university
D.

Its head office is in Wales

Correct Answer
C. It is regulated by another organisation, ie a university

8.

What was the most common area of concern raised with the Charity Commission about charities in 2011-12?

A.

Fraud
B.

Fundraising techniques
C.

Terrorism allegations
D.

Governance issues

Correct Answer
D. Governance issues

Explanation
More information on this can be found at the following link: http://www.civilsociety.co.uk/governance/news/content/13653/poor_governance_is_the_main_issue_in_commission_investigations

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9.

What is a 'Scheme' in charity regulation terminology?

A.

A project requiring Charity Commission consent
B.

A document giving consent to change the charity's governing document
C.

A merger proposal
D.

The regulatory framework governing small charities

Correct Answer
B. A document giving consent to change the charity's governing document

10.

A charity can have a political purpose.

A.

True
B.

False

Correct Answer
B. False

Explanation
While charities can undertake campaigning and political activity, this must not be their sole purpose, rather it must support or further its charitable purposes. The Charity Commission says: "A charity cannot have a political purpose. Nor can a charity undertake political activity that is not relevant to, and does not have a reasonable likelihood of, supporting the charity’s charitable purposes.

"Whilst a charity cannot have political activity as a purpose, the range of charitable purposes under which an organisation can register as a charity means that, inevitably, there are some purposes (such as the promotion of human rights) which are more likely than others to lead trustees to want to engage in campaigning and political activity."

Full advice on campaigning and political activity by a charity is available here: http://www.charity-commission.gov.uk/Publications/cc9.aspx

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11.

The Charity Commission has no regulatory powers in matters relating to fundraising.

A.

True
B.

False

Correct Answer
B. False

Explanation
While fundraising is predominantly self-regulated, the Charity Commission retains powers to regulate in certain circumstances. The Fundraising Standards Board is the independent body that handles complaints from the public about their members' fundraising practices, but it only has regulatory powers over its members. The Public Fundraising Regulatory Association (PFRA) is the voluntary membership body for direct debit donations through face-to-face and door-to-door fundraising. It sets out agreements with local authorities over how face-to-face is conducted in their areas, and in 2012 introduced fines for improper conduct by street fundraisers. However the Institute of Fundraising has developed the Codes of Fundraising Practice with the Charity Commission, and the Charity Commission says: "There are issues that can arise in the context of fundraising that are the subject of formal regulation by the Charity Commission and other regulators."

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12.

Which of these is not a 'must' for charity trustees:

A.

Ensure the charity remains solvent
B.

Avoid personal conflicts
C.

Take personal responsibility for their decisions concerning the charity
D.

Rely on Charity Commission guidance for legal matters

Correct Answer
D. Rely on Charity Commission guidance for legal matters

Explanation
The Charity Commission guidance is provided as an overview of legislation and regulation. The Charity Commission says: "Some topics are complex and governed by different laws and regulations depending on the kind of charity. You should not rely on this guidance to be an accurate or full description of legal matters affecting your charity. It provides a general introduction and overview, and highlights areas where you may need further advice."

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13.

Under which of these circumstances can a trustee not resign?

A.

When leaving an incorporated charity with less trustees than required in its governing document
B.

When the chairperson has not agreed to the resignation
C.

When a charity is in the process of electing trustees
D.

When a charity has an annual income over £100,000

Correct Answer
A. When leaving an incorporated charity with less trustees than required in its governing document

14.

Who are the current chief executive and chair of the Charity Commission?

A.

Andrew Hind (CEO) and Dame Suzi Leather (Chair)
B.

William Shawcross (CEO) and Dame Suzi Leather (Chair)
C.

Sam Younger (CEO) and William Shawcross (Chair)
D.

Sam Younger (CEO) and Andrew Hind (Chair)

Correct Answer
C. Sam Younger (CEO) and William Shawcross (Chair)