The Government has approved legislation to regulate charities and impose new controls on fundraising.
The Charities Bill 2007 proposes a Charities Regulatory Authority with which all charities would have to register, Minister of State at the Department of Community, Rural and Gaeltacht Affairs Noel Ahern said yesterday.
It also places new controls on fundraising, particularly that carried out by "chuggers", who seek non-cash donations such as direct debits or promises of money.
However, the legislation, which will be published next week and will enter the Oireachtas towards the end of the month, has little chance of being passed before the general election is called.
Mr Ahern said he hoped the Bill would pass through the Oireachtas speedily, but admitted there wasn't much time. "A lot depends on the attitude of the other parties and within the sector."
The Irish Charities Tax Reform Group gave the legislation a warm welcome, saying it addressed many of its concerns positively.
At present, there is virtually no regulation specific to over 7,5000 charities in the State. Some well-known charities have suffered fraud and other scandals over the years, yet there is no legal requirement to provide donors with financial information except as demanded by company law.
Successive governments have promised to bring in legislation to protect against fraud and other abuses but, aside from a series of reports, nothing has happened thus far.
Responsibility for charities regulation has passed from the Department of Justice to Social and Family Affairs and then to Community, Rural and Gaeltacht Affairs, which has spent the past three or four years drafting the legislation.
The new Bill will require charities to keep proper books of accounts and to make annual, publicly accessible reports on their activities to the authority.
The authority will have the power to investigate charities, search records, enter premises on foot of a search warrant and impose sanctions on wrongdoers. Significant penalties are promised for offences under the legislation.
"This is a hugely significant day for everyone involved in charitable work in Ireland, and for the general public who contribute so generously in support of charitable purposes," said Mr Ahern.
"The Bill, when enacted, will boost public confidence in the sector through increased transparency and proportionate regulation, and will provide a legislative framework for better administration of charitable organisations."
For the first time, "charitable purpose" will be defined in legislation, and consultative panels will be established to help the authority in its work.
Charities with an income of less than €100,000 a year will have reduced reporting requirements and a Charity Appeal Tribunal will be set up to enable charities to appeal decisions of the authority without the expense of going to court. No restrictions will be placed on charities engaging in advocacy, but certain bodies are excluded from being charitable organisations, including political parties, trade unions, chambers of commerce, bodies that support terrorism and sporting organisations.
Mr Ahern said he had no intention of "stifling" small, informal fundraising activities.
Collecting money on behalf of, say, a sick neighbour is unlikely to fall within the ambit of the legislation, while wider fundraising for the disease from which the person suffers would be considered a charitable activity under the legislation.
Mr Ahern said the authority would cost €4 million annually to run. Whether charities themselves should contribute to the cost of the service has been left in abeyance.