Consultation may lead to charities being struck off for not publishing accounts

Charities could be struck off if they repeatedly fail to publish annual accounts of their spending and activities, under new proposals from the Scottish Government.

Ministers are consulting on bringing in new legislation covering charities in Scotland, stressing the need to improve public trust and confidence in the sector.

The proposed new charity law could require all organisations on the Scottish Charity Register to publish annual reports and accounts.

If charities persistently fail to do so they could be removed from the register, and may no longer exist, under one of the options out to consultation.

It comes after the Oxfam sex scandal in 2018 dented public confidence in the sector.

A survey by the Scottish Charity Regulator OSCR last year showed almost nine out of 10 people (88%) would trust charities more if they could see evidence of their achievements and how much cash from donations went to good causes.

Scottish ministers are seeking to increase the transparency and accountability of charities.

Other options put forward in the consultation include establishing an external register of charity trustees, and a requirement for all organisations on the Scottish Charity Register to have and retain a connection in Scotland.

Communities Secretary Aileen Campbell said: “Charities play a vital role in our society, from supporting individuals and communities, to informing policy at a national level, they are key to us achieving our ambition of creating a fairer and more prosperous country.

“It is therefore important that we do all we can to maintain and increase public trust and confidence in the charity sector and making sure legislation supports that.

“I would encourage anyone with an interest in the charity sector to share their views by responding to this consultation.”