Charities working overseas

There are two changes that have been recently introduced that affect organisations spending money overseas. These could affect some of the organisations in Lewisham that include other countries in their area of operations.

Finance Act

Part of the Finance Act 2010 allows Her Majesties Customs and Revenue (HMRC) to judge whether money spent overseas is spent on charitable activities or not. If it decides that the money was spent on non-charitable activities HMRC may withdraw the tax relief on that money. To avoid this organisations spending money overseas should keep full records of the money spent.

Bribery Act

The Bribery Act 2010 also includes measures that while not aimed at charities could affect charities. The act creates four new offences, including bribing a foreign official and failing to prevent a bribe being paid.

Control of money sent overseas

Both of these measures could affect organisations that send money overseas, but do not control how the money is spent. This is something that the Charity Commission has already advised against. In at least one inquiry report they ruled that money raised for charitable purposes remained the responsibility of the charity that raised the money and that it could only be spent on charitable purposes. Passing money to another organisation, even if it was also charitable did not remove the obligation to ensure that the money could only be spent on charitable activities. See Charity Commission guidance for charities working overseas.