CTG has responded to the National Audit Office consultation on the effect of regulation on businesses and Civil Society Organisations.

The response makes that CTG understands the importance of regulation, as a tool for safeguarding the integrity of charity tax reliefs, and protecting the Exchequer and charities from fraud and abuse. CTG wholeheartedly supports Government efforts to stop charities being used as vehicles for tax evasion, and avoidance of tax which should be paid by private individuals or non-charitable companies.

We also stressed, however, that regulation had to remain proportionate and targeted if it was to avoid inadvertently catching innocent donors or charities, which make up the vast majority of the sector. Charities are entirely dependent on the goodwill, both of their donors and of the volunteers who often run them on a day-to-day basis. Overly stringent regulation, we suggested, could contribute to restricting both parties; with potential donors believing that donating is not worth the trouble or with volunteers finding regulation too complicated to implement properly.