Charities (Regulation and Administration) (Scotland) Bill: business and regulatory impact assessment

Impact Tests

Scottish Firms Impact Test

Although this legislation will impact specifically on the charity sector, around 75% of social enterprises are also charities therefore many charities and respondents to the consultation process have business-like operations. There is an inherent relationship between the private sector business world and a strong, trustworthy third sector that is well regulated.

Of the 307 respondents to the 2019 consultation 180 of those were classified as 'organisations', of those 164 were charity sector organisations^[8]. A diverse range of charity sector organisations responded to the consultation. This ranged from local to national charities, and from membership bodies to cross-border charities and social enterprises. Consultation responses are analysed in the table above.

Regular meetings between Scottish Government policy officials and OSCR have taken place throughout the development of the proposals and continue throughout the Bill process.

Competition Assessment

The proposals are not expected to impact significantly on any businesses or firms more than others. There is no known impact that strengthening of regulation in the charity sector would have on the competition of the markets in Scotland. There will be no limiting of the number or range of suppliers directly or indirectly, there will be no impact on the ability of suppliers to compete and there will be no reduction in the incentives of suppliers to compete vigorously as a result of the proposals outlined in this Bill.

Consumer Assessment

Consumers impacted by these proposals are the beneficiaries of charities. The intended outcomes of these proposals should have a positive impact on the beneficiaries of charities as the aim is to improve charity regulation thereby increasing transparency and accountability in charities and bringing Scottish charity legislation up to date with key aspects of charity regulation in England and Wales and Northern Ireland. This should provide more protection for consumers and enhance the charity brand.

Test run of business forms

No new business forms will be introduced as a result of these regulations therefore there is no requirement for a test run.

Digital Impact Test

OSCR is already in the process of moving most of its functions online, including, once this Bill is passed, the collection and publication of accounts and trustee information. The result of this on various communities and those with protected characteristics have been explored in more depth in the EQIA^[9] and the ICIA^[10] for the Bill.

Legal Aid Impact Test

No impact on legal aid has been identified as a result of the proposals in this Bill.