Public benefit for poor 'mis-stated'

By Stephen Cook, Third Sector, 4 April 2007

The Charity Commission's consultation on public benefit by charities mis-states the law on people on low incomes, according to leading charity lawyers Farrer & Co.

The firm's initial response to the consultation said the statement that "people on low incomes must be able to benefit" was inconsistent with a key case, Re Resch.

"That case says that the poor must not be entirely excluded," said Farrers. "By saying that charities must be capable of benefiting people on low incomes, and that this benefit must be more than nominal, the commission steps beyond that.

"Moreover, the point in Re Resch about not excluding the poor was made in the context of fee-charging by charities. This does not mean it is applicable to all."

A commission spokeswoman said access by the poor was an overarching principle. "Our intention in the draft guidance is to take the principles identified through analysing the underlying law and restate them in a way that will be helpful to trustees," she said.

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