Denis Naughten
Question:228 Mr. Naughten asked the Minister for Finance the definition of a charitable organisation which is exempt from paying local authority rates; and if he will make a statement on the matter. [2675/03]
Written Answers. - Charitable Organisations.
The Valuation Act 2001 provides for the exemption from rates any land, building or part of a building occupied by a charitable organisation which uses the land or building exclusively for charitable purposes and otherwise than for profit.
The expression charitable organisation is defined in section 3 of the Act. This definition is:
"charitable organisation" means a company or other body corporate or an unincorporated body of persons which complies with the following conditions:
(a) in the case of a body corporate which is not a company, or of an unincorporated body of persons, there exists a constitution or deed of trust in relation to it that–
(i) states the full name of the body,
(ii) provides who are to be its trustees or who are to be the members of its governing board or committee,
(iii) states, as its main object or objects, a charitable purpose and specifies the purpose of any secondary objects for which provision is made to be the attainment of the main object or objects,
(iv) states its powers,
(v) provides for rules governing its membership and procedures to be followed in relation to meetings and the discharge generally of its business,
(vi) provides for the keeping of accounts and the auditing thereof on an annual basis,
(vii) (I) provides for the application of its income, assets or surplus towards its main object or objects,
(II) prohibits the distribution of any of its income, assets or surplus to its members, and
(III) prohibits the payment of remuneration (other than reasonable out-of-pocket expenses) to its trustees or the members of its governing board or committee or any other officer of it (other than an officer who is an employee of it),
(viii) makes provision for its winding up, and
(ix) provides for the disposal of any surplus property arising on its being wound up to another charitable organisation (within the meaning of this Act), the main object or objects of which is or are similar to its main object or objects or, if the body receives a substantial proportion of its financial resources from a Department of State or an office or agency (whether established under an enactment or otherwise) of the State, to such a Department, office or agency, and
(b) in the case of a company–
(i) the memorandum of association or articles of association, as appropriate, of the company comply with the conditions specified insubparagraphs (iii) and (vii) of paragraph (a) of this definition (and, for this purpose, the reference in clause (III) of that subparagraph (vii) to trustees or other persons shall be construed as a reference to the directors or any other officer of the company), and
(ii) there is contained in that memorandum or those articles a provision, with respect to a case of its being wound up, that is similar to the condition specified inparagraph (a)(ix) of this definition.