Charities must take the responsibility for putting in place their own corporate governance systems because of the slow pace of Government attempts to regulate the sector, charities were told yesterday.
Tom O’Higgins, an expert on corporate governance, told a seminar attended by 50 leaders of community and voluntary organisations that the current regime for charities and the not-forprofit sector was unsatisfactory.
He said there was no central body for the regulation of charities in Ireland or statutory provision for their registration and inspection. There was also no statutory definition of charity, charitable purpose, not-for-profit organisation or non-governmental organisation.
"What we have is a minimal system based on Victorian concepts of law and humanitarianism, and a series of unconnected regulation," he said. Mr O’Higgins made the comments at a "good governance" seminar organised by TheWheel, a support and representative body for the community and voluntary sector in Ireland.
The Wheel’s chief executive, Deirdre Garvey, said it could take years before Government pledges to regulate the charitable sector resulted in concrete steps.
"Charities welcome the introduction of this new legislation. However, the reality on the ground is that this legislation might take up to three or more years to be enforced . . . Groups will have to continue to take responsibility themselves for best practice in relation to issues of governance to ensure accountability and transparency," she said.
She said good governance was about ensuring an organisation was run effectively and was transparent and accountable in its operations. Such measures were important for charities themselves and in promoting public confidence in the sector. "Developing the best possible processes is vital . . . to ensure that organisations deliver the most effective services and . . . maintain public support and confidence.
This public good will is not only essential in terms of raising funds to carry out charitable activities but also to attract high-calibre people to serve on boards," she said.
Mr O’Higgins added that organisations should aim for the highest standards, and every person joining voluntary boards should be trained to observe high standards of good governance.
