CHARITY REGULATOR URGES AGRICULTURE BODIES TO UPDATE

Scotland’s charity regulator has issued directions to three agricultural charities to amend their constitutions. OSCR, The Office of the Scottish Charity Regulator, has determined that the wording used to describe their charitable purposes does not comply with the Charities and Trustee Investment (Scotland) Act 2005.


The Society of Border Leicester Sheep Breeders, The Loudoun & Galston Agricultural Association, and The Highland Cattle Society, have each been given 12 months to amend their stated charitable purposes in order to meet the charity test. Charities must have exclusively charitable purposes and provide public benefit. The Regulator has decided that phrases such as ‘the advancement of agriculture’ or ‘maintenance of the purity of the breed’ are not charitable purposes as defined in the legislation.


OSCR is urging similar charities to review the wording of their constitutions and apply for changes to charitable purposes where required. The process is straightforward and guidance is available on the regulator’s website, www.org.uk .


The use of such phrases is estimated by OSCR to affect a small number of charities out of Scotland’s 23,500. In many cases, the charity’s current activities may allow it to adopt, subject to OSCR’s consent, one or more of the charitable purposes contained in the Act.


For example:


· A breeders’ society dedicated to maintaining a heritage breed could change its charitable purposes to relate to: ‘the advancement of the arts, heritage, culture or science’

· An agricultural society that operates community events could change its charitable purposes to relate to: ‘the advancement of citizenship or community development’.

OSCR’s Chief Executive, Jane Ryder, said that the ruling represented an opportunity for charities to review the wording of their constitutions. ‘We have consistently stressed the need for charity trustees to ensure that their constitutions remain fit for purpose, including compliance with the legislation,’ she said. ‘Charity trustees, where affected, should consider the charity’s current activities and how these could be expressed through the purposes contained in the Act.’


OSCR made its ruling as part of its Rolling Review of Charitable Status, the process by which it assesses groups of charities identified as priorities because they may not meet the charity test specified in the Act. Cattle societies and breeders’ societies were specifically noted in OSCR’s policy document along with care homes, universities, students’ unions and independent schools, among others.


In Phase 1a of the Rolling Review, the Isle of Gigha Heritage Trust was judged to have failed to meet the charity test, as its stated charitable purpose was ‘the advancement of trade and industry’. Following OSCR’s direction, the charity applied to change its charitable purpose to adopt five of the purposes specified in the Act. OSCR granted its consent and the charity remains entered in the Scottish Charity Register.


Guidance on Meeting the Charity Test and application forms to apply for changes to charitable purposes, are available to download free of charge at www.oscr.org.uk