Can the Commission Cope?

One major concern in the light of the 2006 Act will be the ability of the Commission properly to regulate the sector in the light of its new functions, duties and powers conferred by the Act. The Commission has five objectives and six general functions set out in S7 of the 2006 Act. It also has to regulate the new CIO and to provide personnel to defend itself against appeals to the Charity Tribunal.

This concern was picked up by the Parliamentary Joint Committee on the Charities Bill when it stated that:

"The evidence we have heard has given us reason to question whether the Charity Commission is properly organised and properly resourced to make it effective in its new tasks. We recommend that professional advice be sought to review the ability of the Charity Commission to meet its new responsibilities under the draft Bill and in particular the quality of the processes, methods and organisation; the calibre of its staff; its resources; and whether the Commission should, like other regulators, be able to determine the number and conditions of its own staff".

The Commission has itself voiced concerns about this. In its 2005 publication Charity Working at the Heart of Society – The Way Forward 2005 - 2008, it stated that:

"How we operate over the next three years will also be influenced by our 2004 spending review settlement of £13 million until 2008. The implication of this is a decline in the real terms value of our funding of approximately 2.5% in each of the next three years".