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A Charitable Concern? How Charities in Scotland Are Preparing for the Potential for Constitutional Change

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A Charitable Concern? How Charities in Scotland Are Preparing for the Potential for Constitutional Change A Charitable Concern? How charities in Scotland are preparing for the potential for constitutional change Richard Kerley, Carnegie Associate ACKNOWLEDGEMENTS This report was written by Professor Kerley on behalf of the Carnegie UK Trust. The project was managed by Jennifer Wallace, Policy Manager and internal review and project support provided by Lauren Pennycook, Policy Officer. The Trust would like to thank the Office of the Scottish Charities Regulator for assisting us with contacting charities in Scotland. We are grateful to all those who gave up their time to contribute to the project, through surveys, interviews and attendance at a seminar to discuss the emerging findings. Designed and printed by Digital Typeline Publications The text of this work is licensed under the Creative Commons Attribution- ShareAlike 3.0 Unported License. To view a copy of this license visit, http://creativecommons.org/licenses by-sa/3.0/ or send a letter to Creative Commons, 444 Castro Street, Suite 900, Mountain View, California, 94041, USA. This report is printed on paper that is FSC certified. Contents Foreword 1 1. Introduction 2 1.1 About this research 3 2. The charity sector in Scotland 4 2.1 Purpose and size of the sector 4 2.2 The relationship between charities in Scotland and those operating elsewhere in the UK 4 2.3 Regulation of charities in Scotland 6 3. Key findings from the survey 7 3.1 The location of our respondents 7 3.2 Impact of possible constitutional change 8 3.3 Addressing possible change 9 3.4 Responding to the external debate 11 4. Key findings from the interviews 12 4.1 Is there space for this discussion within charities? 12 4.2 Is it the right time for discussion? 13 4.3 Organisational and board alertness 14 4.4 A matter below the radar? 15 4.5 The role of intermediary organisations 16 4.6 The UK connection 17 4.7 The governmental and policy context 17 4.8 Whose side are you on? 18 5. Conclusions 19 5.1 Implications for charities and civil society 19 5.2 Implications for government and its agencies 20 Recommendations 21 Appendix A: Research Methodology 22 Appendix B: Survey Monkey Questionnaire 25 Appendix C: Interview prompts 26 A CHARITABLE CONCERN? HOW CHARITIES IN SCOTLAND ARE PREPARING FOR THE POTENTIAL FOR CONSTITUTIONAL CHANGE A CHARITABLE CONCERN? HOW CHARITIES IN SCOTLAND ARE PREPARING FOR THE POTENTIAL FOR CONSTITUTIONAL CHANGE 1 Foreword Over the course of our 100-year history, the Carnegie UK Trust has supported civil society in a variety of ways. The establishment of the Trust pre-dates the Government of Ireland Act 1920 that partitioned Ireland. Constitutional change at that time led to heated debates within the Board of the Trust about our possible response. Ultimately, the Trust chose, rightly, to continue working in the Republic of Ireland, but this experience has made us more aware than most that the effects of constitutional change are wider than the transfer of parliamentary powers. As a charitable Trust, it is not our place to engage in the political debate around the merits or demerits of independence or further devolution. But we do have an interest in the sustainability of civil society organisations, such as charities. This project, carried out for us by Professor Richard Kerley, explores the current state of organisational awareness, understanding of, and responses to the possible implications of further constitutional change amongst charities in Scotland. It is suggested by our findings that levels of preparedness and formal engagement in this discussion to date by charities in Scotland are variable and, at present, limited. This is to be expected given that we are, at the time of writing, around two years away from a referendum on the issue. What is important, however, is that at some point, charities will have to engage with what the implications of further constitutional change may be for themselves and for those people and causes they work for. Martyn Evans Chief Executive Carnegie UK Trust 2 A CHARITABLE CONCERN? HOW CHARITIES IN SCOTLAND ARE PREPARING FOR THE POTENTIAL FOR CONSTITUTIONAL CHANGE INTRODUCTION 1. Introduction The Scottish Government is committed Independence, should it take place, would to holding a referendum of the Scottish represent a legal and social change of major electorate on the issue of independence consequence for charities, although on a variable from the United Kingdom in the autumn horizon rather than in the immediate foreground. of 2014. A White Paper for the Bill − which The current debate on constitutional change is established four possible options ranging from discussed in an undetermined form that does not no constitutional change to full independence readily enable detailed discussion about possible − was published on November 30, 2009. implications and therefore the appropriate However, to date there has been little discussion organisational responses and decisions. on the impact that any such constitutional The terms used in this research are Independence change would have on Scottish charities. and ‘Devo-Max’ in contrast to the status quo This report on the way in which charities in as amended by the Scotland Act 2012 (see Scotland are preparing for internal discussion box 1.1). The research was carried out before of possible constitutional or institutional the Edinburgh Agreement1 between the change − and the possible consequences of Scottish Government and UK Government on any such change − is based upon research a single question referendum. Both further carried out in the spring and early summer of devolution and full independence were being 2012. This period has been one of lively – but actively debated. By the time of publishing, uncertain – discussion, in all forms of media. this has been resolved. There will be a single question on independence. Devolution Plus is off the agenda (for now − at least). Box 1.1: A note on language The use of words and terms that derive from ‘constitution’ are problematic in the UK and the four constituent jurisdictions, as there is no formally identified constitution for any of the jurisdictional entities. If it is argued that the Scotland Act represents a de facto constitution for Scotland, then any change to this (of the type we have seen recently) is ‘constitutional’ even if it embraces obviously non-critical legislative change that is not constitutional. So this word − and similar terms − are not used here with any definitional precision, and the use of the word ‘independence’ is similarly non-specific. In the context of this research, it has been understood by interviewees to mean an independent country sharing some institutions (the monarchy) and government services (a central bank) with the rest of the UK. Similarly, the term ‘Devo-Max’ is understood to be non-specific in form, but with a far more ambitious array of powers being acquired by the Scottish Parliament than are currently held. Despite the lack of detail, the participants appeared to understand the difference between the two terms. During interviews the general term used was ‘constitutional or institutional change’. 1Agreement between the United Kingdom Government and the Scottish Government on a referendum on independence for Scotland. Edinburgh, 15 October 2012. http://www.scotland.gov.uk/Resource/0040/00404789.pdf [Accessed November 2012] A CHARITABLE CONCERN? HOW CHARITIES IN SCOTLAND ARE PREPARING FOR THE POTENTIAL FOR CONSTITUTIONAL CHANGE INTRODUCTION 3 The impact of further constitutional change, The research commenced with an electronic should it occur, will differ between organisations. survey of those charities with a turnover of In particular, the impact will vary depending on more than £500,000 registered in Scotland by the relationship between the charities in Scotland the Office of the Scottish Charity Regulator and their counterparts in the rest of the UK (OSCR). We then carried out follow-up interviews (should these exist). The landscape for charities with senior representatives of a sub-set of the in Scotland, and their relationships with charities survey respondents. Overall, 164 organisations across the UK, is complex and poses a challenge responded to the survey and 23 were interviewed. for understanding the potential impact of The emerging findings were discussed with at a constitutional change. stakeholder seminar in September 2012. At this stage in the debate on constitutional The research is described more fully in the change, this project did not aim to identify and ‘research methods’ section of this report (See explore all the possible impacts on charities in Appendix A). Scotland. Instead it focuses on the preliminary stage by asking whether organisations are currently engaged actively in exploring what the potential impacts on their organisation may be, should there be a vote in favour of Independence in the 2014 referendum. 1.1 About this research The research examined different aspects of the way in which charities are organising their discussion and consideration of the possibility of independence or other constitutional change for Scotland rather than any views that they might have, or might have expressed on the substance of this matter. During the interviews, any observations on whether the organisation, or leading figures within it, had any views on the merits or otherwise of such constitutional change were explicitly excluded from discussion by the interviewer. 4 A CHARITABLE CONCERN? HOW CHARITIES IN SCOTLAND ARE PREPARING FOR THE POTENTIAL FOR CONSTITUTIONAL CHANGE THE CHARITY SECTOR IN SCOTLAND 2. The charity sector of Scotland • The most commonly reported charitable purpose is ‘working to advance education’, cited by 50% of charities. • Charities can report more than one charitable purpose and this report shows that in 2011, the average number of charitable purposes reported The charity sector in Scotland, some 23,000 was 2.7, the same as 2008. organisations, is diverse and complex.
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