Government plans to raise the threshold for compulsory registration with the Charity Commission to £5,000 could leave thousands of charities unregulated, the Institute of Chartered Secretaries and Administrators has warned.
In its response to the Strategy Unit report two weeks ago, the Government backtracked on an original proposal to raise the threshold from £1,000 to £10,000, and settled on the £5,000 figure.
But the ICSA remains concerned that while charities below the threshold "will still be able to approach the Commission for guidance, the lack of oversight could pose a serious threat to their standards of governance".
Policy Unit director Caroline Phillips said: "Tens of thousands of those charities in greatest need of scrutiny are unlikely to get the attention the public expects."
The institute is also urging the Government to take time over the drafting of the forthcoming charities bill. The institute fears a too urgent approach could see a repeat of the 1992 Charities Act - "certain provisions of which never actually came into force because of poor drafting or misunderstanding of the interface between charity and company law".