NEW LEGISLATION to regulate charities, which is currently before the Oireachtas, fails to provide adequate legal protection for directors and trustees, it has been claimed.
Housing association Respond says the Charities Bill fails to provide specific protection for voluntary directors personally liable in situations where public bodies fail to honour funding agreements.
The loophole will dissuade volunteers from getting involved in charity and put trustees at unnecessary risk, it claims.
Respond yesterday called on Seanad members, who are due to scrutinise the Bill this week, to amend the proposed legislation to provide the necessary protection for trustees.
Pat Cogan, chief executive of Respond, said the lack of protection in the Bill as it stands would do "untold harm" to the charity sector. Voluntary directors or board members would become "a thing of the past".
"Given the frequency with which State bodies withdraw funding from charities, Respond insists that it is absurd to expect a voluntary board member to be held personally liable."
Mr Cogan said he didn't expect the protection to apply to all financial agreements, only those with public or State bodies such as the the Health Service Executive.
