Northern Ireland’s Department for Communities is currently consulting on changes to section 167 of the Charities Act (Northern Ireland) 2008, which is not currently in force.

This section applies to institutions that operate in or from Northern Ireland but are not established under its law and therefore cannot register as charities with the Charity Commission for Northern Ireland.

Section 167 was introduced to address challenges faced by charities established in other jurisdictions, particularly England and Wales, when operating in locations where dual registration requirements created administrative burdens.

It was intended to avoid dual regulation for charities operating in Northern Ireland but established elsewhere, and prevent the need for such charities to amend their governing documents to comply with Northern Ireland charity law.

It also enables the Department for Communities to require the Charity Commission for Northern Ireland to maintain a register of these institutions and apply or disapply relevant provisions of the 2008 Act.

Similar provisions exist south of the border, where charities established elsewhere must register with the Charities Regulatory Authority.

However, in England and Wales, charities established in other jurisdictions are not required to register with the Charity Commission for England and Wales.

A recent independent review of charity regulation in Northern Ireland found that s.167, as currently drafted, is inoperable.

Key concerns include ambiguity around what constitutes an “institution” under s.167, uncertainty about what it means to be “operating” for charitable purposes in or from Northern Ireland, and the appropriateness of requiring Northern Ireland-only reporting, which is not mirrored in other UK jurisdictions.

The consultation invites views on the potential benefits and disadvantages of s.167 and how it might be amended to better serve charities established elsewhere but operating in or from Northern Ireland.