Legal Functions: Policing

The law relating to charity has always been focused mainly on the use of regulatory powers to prevent the abuse or misuse of funds. The predominance of the policing function can be seen in the legislative history, the judicial precedents and in the nature and range of agencies with an involvement in the exercise of supervisory powers. The gift relationship underpinning charity, resting on the altruistic gesture of a donor in response to the need of others, remains governed by a long established and formidable body of regulatory law.

This chapter begins by tracing the origins of the policing function and outlining its legislative development through the centuries. It considers the registration and regulatory systems, identifies the numerous agencies involved and explains their powers and duties. It gives particular attention to the role of the Charity Commissioners in ensuring the propriety of charitable practice, monitoring/supervising the activities of charities and promoting proper standards of transparency and accountability. It assesses the important developmental part played by judicial precedent in forming the milestones that determine matters such as the nature and applicability of the public benefit test, the appropriateness of charitable purpose and exclusiveness of charitable gifts. It considers the restrictive judicial approach to aid, trade, profit distribution and political activity etc. The chapter concludes by briefly assessing the outcome of the recent charity law reform process in England & Wales and its implications for social policy and for the future of the policing function.