The Intelligent giving blog

How charitable are public schools?

Adam Rothwell - Wednesday, January 23, 2008

Eton College BEWARE THE CHARITY COMMISSION! According to the Daily Telegraph, it's a Brownite-socialist lapdog packed with New Labourites who hound the charities of this country without proper regard to the wishes of the right-thinking British public. 'This commission isn't very charitable,' it proclaims.

Simple. Until, that is, you open the pages of the Guardian. According to this paper, the Commission is actually the tool of the establishment, defending patently un-charitable outfits (like private schools) against reasonable attacks on their bizarrely granted charitable status. 'Though private schools cannot meet even the crudest definition of a charity, the Commission - doubtless terrified of the force they can muster - grants them a series of escape clauses,' it thunders.

Oh dear. Both newspapers have got the situation horribly wrong. They have over-reacted - perhaps predictably - to a remarkably straightforward change in the law. And they have charged the Commission with ideological bias for no good reason.

Cutting past the excitible rhetoric, the facts are these: last Wednesday, the Charity Commission published its long-awaited guidance on what's technically known as 'public benefit'. This was big news in the charity world because, under the Charities Act 2006, all charities will have to prove that they operate 'for the public benefit' from about 2009.

On the whole, this isn't an onerous requirement. Charities which, for example, run hospices, help abused children or conduct medical research are pretty obviously working for the benefit of the public - and proving that will not be hard.

But the waters are muddier when it comes to private ('independent') schools. Most of these schools are charities, but their public benefit is often called into question. And, seeing as many of them charge upwards of £12,500 a year in fees, it's easy to see why. The role of the Commission's guidance is to give some clue as to whether charging such fees would put at risk the schools' ability to deliver a public benefit.
"The broad thrust of the guidance is that private schools have little to fear"
The thrust of the guidance is that private schools have little to fear. After a remarkably successful lobbying campaign by the Independent Schools Council, the Commission has become notably more sympathetic to the schools' stance. It seems that schools will only be required to rent out their playing-fields, provide a few subsidized places and put on the odd concert with the state school down the road in order to pass the public-benefit test.

It's not our business to say whether this stance is morally right or wrong. But we can say that the Commission has done a pretty good job at drawing up the guidance. Ignoring a bonkers exercise it carried out last year to find out what 'ordinary people' thought about public benefit, it has instead done (or tried to do) what the Charities Act demanded of it: to chew over centuries of court judgements relating to charities, decode them and apply the principles of case law to its guidance. But the headline, 'Charity Commission comes to subtle interpretation of Lord Wilberforce's judgement in Re Resch' seems unlikely.

> Truth & Lies: Why is Eton a charity?


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Submitted by A Crackpot (not verified) on Thu, 24/01/2008 - 2:41pm.

Intelligent Giving professes to sit on the fence where moral questions are concerned; yet, whilst hiding behind this mask of impartiality, it makes partisan comments that leave this reader with little doubt about its underlying position. So, in his article "How charitable are public schools", Adam writes, "It's not our business to say whether this stance is morally right or wrong," yet elsewhere on the site, in the article "Why is Eton a charity?" prefixed by the usual claim to moral ambivalence, one finds, ".. we somehow doubt that the parents stumping up a minimum of £26490 a year in fees do it out of the goodness of their hearts."

The act of giving generates a feeling of superabundance within an individual and is therefore a fundamentally healthy thing to do. I guess that this is at the heart of IG's mission. The problem is that taxation is so onerous that most people cannot achieve these states of superabundance as often as they would wish; typically, for every two pounds that we earn, the state forcibly takes one pound. So, it seems to me that the corollary of IG's mission to encourage charitable giving should be to argue for lower taxation and to generally be in favour of the state shrinking.

So, let's have no more carping about some parents who, happily, have been able to keep their children away from the grip of the Cold Monster.


Submitted by Charity Chris on Thu, 24/01/2008 - 2:41pm.

There was another interesting article here: http://www.timesonline.co.uk/tol/comment/columnists/simon_jenkins/article3216617.ece

There seems to be a lot of pre-judgment going on. I would have thought that only time will tell whether or not fee-charging schools fail the public benefit test. I suspect that some will, and some won't - and the same may well go for many other charities.

That said, having read annual reports for some schools, a lot of them have a long way to go in demonstrating their public benefit.

In some ways I'm surprised that schools have created such a stink about the new legislation - after all, there has been no suggestion that schools should be shut down, and, unless they are making vast financial surpluses, losing charitable status wouldn't necessarily have a massive impact. If it is the status that means so much, then one might hope that anything that helps to protect the value of that status, such as ensuring delivery of public benefit, might be welcomed.


Submitted by Adam Rothwell on Wed, 23/01/2008 - 5:15pm.
Hi Ginsters,

The point I was trying to make about the Charity Commission's focus-group exercise was that it was bound to be irrelevant, right from the very start. The Commission's job, given to it by the Charities Act, was to interpret and sum up case law. Why it thought running focus groups was relevant to this is anyone's guess.

I should also have made this clearer: I've absolutely no objection to the formal consultation exercise the Commission carried out on its Draft Guidance. It's clear that this shed a lot of light on some knotty legal issues. But the hocus-pocus with focus groups got be scratching my head.

Adam, Intelligent Giving

Submitted by Martin Davies (not verified) on Wed, 23/01/2008 - 4:37pm.

Is the man on the street armed with the right information though?
Or is the man in the street someone who may or may not have an opinion, that may or may not have any basis in fact?
I've an opinion about a private school, the one I went to. Doesn't mean that I need to have an opinion about the other private schools that I know little about.
Or that my opinion about one will apply to the others. :)

The man in the street may be able to make a far more sensible decision than the judiciary. But will they have the information to do that? Or will it be based on any bias or ideology?

I'd hope the judiciary would operate without bias as much as possible - pipe dream I know. But could they be any worse than anyone else?

Martin


Submitted by Ginsters Dragon on Wed, 23/01/2008 - 4:08pm.

Why is it 'bonkers' to ask the public their views on 'public benefit'? It would seem common sense to many. Quite often the man or woman in the street, armed with the right information, can reach a far more sensible decision than our esteemed judiciary. You don't have to research too much to reveal nutty interpretations of criminal law, family law, charity law (or any other branch of law that you care to mention), which now tie the hands of law makers and law enforcers to our detriment.   

To be fair I'm quite sure that you're not deriding the very concept of public consultation, but rather the way in which it was carried out. I just wanted to seek clarification! 

 

Don't shoot the messenger


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