Jersey government has approved new charities legislation to create a modern legal framework to support all types of international philanthropic and charitable enterprise.
In order to make sure the new legislation is as flexible as possible, catering for the needs of small local charities as well as global philanthropic structures, Jersey has introduced a unique framework that is expected to prove attractive for a wide range of philanthropic and charitable organisations whilst at the same time providing the appropriate levels of governance and accountability so crucial in this area, according to Jersey Finance.
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Highlights of the new law include:
- The introduction of a charity test, determined by the Charity Commissioner for all registered charities, which guarantees that a registered charity can only have charitable purposes and must provide public benefit.
- An entitlement for registered charities to receive charitable tax reliefs and to call themselves a charity.
- A requirement for the governors of a charity (e.g. trustees, directors or foundation council members) to ensure the charity acts in accordance with the law, pursues the stated charitable purposes and delivers public benefit.
- The introduction of restrictions on the use of the terms ‘charity’ and ‘charitable’, with only a registered charity being able to call itself a ‘charity’ and regulations being developed to restrict the use of the term charitable by non-registered entities that undertake any public fund-raising activities.
Research indicates that around a third of foundations formed are directed towards philanthropic activity.
Philanthropy is a growing industry in itself, with the 2014 Capgemini/RBC Wealth Management World Wealth Report 2014 finding that driving social impact was ‘very or extremely important’ to 60% of high net worth individuals around the world, with those under 40 and those in emerging markets leading the trend.
Geoff Cook, CEO Jersey Finance, said: "For some time, Jersey has evidenced a strong philanthropic element as part of its wealth management services, largely through its well-used trusts, foundations and corporate vehicles. This new law, however, will add a welcome degree of clarity and structure to Jersey’s charitable framework, setting it apart from other centres and furthering its reputation as a leading centre for global philanthropy."
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