Part of the debate – in the House of Commons at 11:13 pm on 20 June 1991.
I should like to use the Adjournment debate to raise an important aspect of the regulation of charities. Britain is a charitable nation. At least one in four adults regularly engages in some form of voluntary activity. In England and Wales, 171,000 charities are registered with the charity commissioners. The total turnover of charities is no less than £13 billion. Charities are thus big business.
The advantages of being a registered charity are considerable. Charities are exempt from income and corporation taxes, capital gains tax and capital transfer tax, and attract 80 per cent. relief on the uniform business rate. Moreover, charitable status inspires public confidence and stimulates donations.
Individuals contribute through their taxes too. The Government's annual contribution to charity stands at £2·5 billion, of which £500 million is granted indirectly through tax benefits.
To maintain public confidence in the charitable sector, certain safeguards are vital. They include the protection of charitable funds from fraud and the prevention of their use for non-charitable purposes, such as political campaigning. It is that latter abuse on which I shall dwell tonight.
The most flagrant case so far has been Oxfam. As providers and organisers of famine relief, the charity has received strong support from the public. Yet I wonder how many of those donating or collecting or giving up free time to serve in Oxfam shops over the years knew that Oxfam was pouring funds into projects funded by the—