Applying for charitable status

Published: Sunday, 04 December 2011

AS  a Canal & River Trust Transition Trustee, may I comment on Graham Phillips' concern that Canal & River Trust hasn't yet applied for charitable status to the Charity Commission? Writes John Dodwell.

Yes, it's right that Canal & River Trust hasn't yet applied to the Charities Commission. Why? Well, until Parliament has formally agreed to the concept, Canal & River Trust can't really apply to the Charities Commission.

Grinding its way

The Public Bodies Bill—to give it its full name—is still grinding its way through Parliament. Bear in mind this Bill doesn't just deal with British Waterways—it covers many quangos, ranging from regional development agencies to agricultural wages boards. Only recently, the Government decided, after all, not to abolish the Chief Coroner. I'm told the Bill should be law by Christmas—fingers crossed.

Another factor is that the Charities Commission needs to be reassured that Canal & River Trust thinks it will be financially viable. As your readers know, negotiations about the Defra funding contract have begun. We all know Defra offered £39m a year for 10 years—in recognition of the public benefits which are not directly paid for—e.g. free access on foot to the towpaths, drainage and flood prevention.

Isn't enough

And we all know the Trustees have said £39m isn't enough. Canal & River Trust would have the certainty of the Defra money for 10 years, and we can get away from cuts year by year. If these negotiations come to a satisfactory conclusion, then another part of the jigsaw will be in place, and Canal & River Trust will be closer to applying to the Charities Commission.

In the meantime, contacts between Canal & River Trust and the Charities Commission are taking place at both Trustee level and between lawyers. The object is to try to ensure that when the application actually goes in, all possible stumbling blocks have been dealt with. That's normal, sensible practice.

Matter for charity and members

Whether your readers write to the Charities Commission is a matter for them—it's a free world! My own previous experience of running charities leads me to suspect that the Charities Commission will say that how the composition of a charity's council is made up is a matter for the charity and its members etc, not the Charities Commission.

The Charities Commission is concerned with whether the objectives are charitable—think of the questions now being asked whether that Dr Fox/Werrity charity was following charitable objectives. Also bear in mind that somehow we have to get Canal & River Trust on the road as a large organisation whilst also setting up its rules—and that the Trustees have said there'd be a review after three years to see if they are right.