Charity sector update - August 2019

The People-Centric Approach to Change for Charities

Considering the speed of evolution in technologies today, how are Charities and Not for Profit organisations not of scale, going to transition and more so, afford these innovations? Jumping on the bandwagon of implementing artificial intelligence related products will only develop gaps between your people and your organisation. Change is a journey that requires both people and technology to travel together, so it is important that both are on the same road and not at the crossroads of separation.

Find out more here about the People-Centric Approach to Change for Charities

GDPR Considerations for Non-profit Organisations

The General Data Protection Regulation (GDPR) came into effect on 25th of May 2018. If your non-profit organisation has directors, employees, grantors, donors or a means of marketing, you are most definitely subject to the requirements of the GDPR. Compliance with GDPR is not only important in terms of respecting data subject’s rights, or to avoid fines up to €20 million or 4% of the organisation’s annual turnover, but also to maintain the trust of donors, stakeholders and those to whom you provide a service.

Find out more here about the GDPR Considerations for Non-profit Organisations

Upcoming tax deadlines

• 23 September 2019- Deadline to submit the July-August 2019 VAT return.

Disclosure of beneficial ownership of Irish companies

Under the 4th Anti-Money Laundering Directive (4AMLD) all EU Member States need to implement a central register to hold beneficial ownership information. In Ireland, the Companies Registration Office (CRO) has been appointed as the statutory body responsible for the establishment and maintenance of the newly-established Central Register of Beneficial Owners for Companies and Industrial and Provident Societies. A Beneficial Owner is defined in Article 3(6), 4AMLD, as any natural person(s) who ultimately owns or controls a legal entity, either through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in the entity, including through bearer shareholdings, or through control via other means. This system was due to go live on 22^nd June 2019, with a five month period for all corporate entities to file their beneficial owners details. Once the company makes the filing, it will only need to file again if or when there is a change in the composition of the beneficial owner(s). As at the time of writing this article the go live date for the system has been postponed temporarily. All indications are that we should expect a new go live date before the end of the summer.

All companies will need to disclose the following information as part of their filing:

• Full name
• Date of birth
• Nationality
• Residential address
• PPS number/social security number/passport number (this will not be retained on the Register)
• A statement of the nature and extent of the interest held by the beneficial owner

Access to search the CRBO is expected to be available once the system goes live and any member of the public can carry out a search.  The information a member of the public will see will be restricted and will not include the person’s full date of birth or address.

We would note that non for profit organisations are often incorporated entities in Ireland, the most common form being a company limited by guarantee (CLG).  Even though a CLG may not have a share capital it is still required to access who its beneficial owners are make the required filing. 

For further information see here for a full breakdown of the Disclosure of beneficial ownership of Irish companies

There are separate requirements for trusts which are not discussed as part of this article.