Regulations to protect the donating public and Bermuda’s charities are set to come into effect before the end of the month, the Senate was told yesterday.

Senator Michael Fahy, Minister for Home Affairs, said the regulations were being implemented as part of the Charities Act 2014.

“Charities play a vital role in our community,” he said. “Bermudians are very generous with their time and resources.

“Our collective entrepreneurial spirit extends to rolling up our sleeves and giving each other a helping hand.

“Notwithstanding this, the donation-giving public expect assurances that their dollars are being put to good use.”

Mr Fahy said all charities would have to meet a “public benefit” test to reach charitable status, showing that they provide a benefit to the community, serve the general public or a sufficient section of it, and provide only necessary or incidental private benefits such as staff pay.

The Charities Act will also require the Registry General and Commissioners to adopt a tiered approach to ensure they are treated fairly.

“Charities with an annual revenue of less than $35,000 will see their accounting standards and procedures remain largely intact,” Mr Fahy said.

“Only the largest charities will be required to submit detailed, audited financial statements.

“Fees charged will be similarly tiered.”

Asked if the Government would consider a percentage fee structure instead of a tiered system to further ease the financial impact on the Island’s smallest charities, Mr Fahy said that such a system would be a “nightmare of administration”.

He added that the fees were already very reasonable.

The regulations will ensure that Bermuda’s charity sector meets international standards with regard to preventing money laundering and terrorist financing, Mr Fahy added.

He also said that further amendments to provide whistle-blowing protection to charity workers were due to be debated in the House of Assembly.

Mr Fahy warned the public to be diligent when considering which charities to donate to, noting a news report about thieves posing as good causes, but he encouraged them to continue to give to charities they believed in, especially over the holiday season.

“Making a contribution on behalf of a loved one to a charity they are passionate about is an excellent idea for a Christmas gift this year,” he said.

“The vast majority of charities in Bermuda do fundamentally important work in augmenting the social services provided by Government and supporting the most vulnerable members of society.

“We need to support them as much as we can.”