‘High fees’ underpin schools charity test failure in Scotland
December 2008
The Office of the Scottish Regulator (OSCR) published the findings of its Rolling Review (Phase 1a) of 30 charities in Scotland.
This was designed to assess the principles that guide the regulator’s decision-making process when assessing whether or not an organisation meets the Scottish charity test. The results of these assessments show that the majority of charities, from the National Trust for Scotland and Gordonstoun School, to the Scottish Rock Garden Trust and the Biggar Music Club, do meet it.
However, four charities, all independent schools, did not because of the existence of unduly restrictive conditions, in particular, the fees that are charged. Despite various beneficial activities undertaken by these schools to give public access to facilities, provide markers for state school examinations and a partnership with a mentoring and counselling charity for young children, it was the scale of the means-tested bursary provision in real terms and relative to the overall size of the school that was key in the decision-making process.
The schools have been given three-stage directions with a clear timetable for planning and implementing the changes needed to pass the charity test.
Michael King of Stone King Sewell told Caritas that he hoped OSCR’s counterparts in the rest of the UK would not follow suit.
‘OSCR's "Rolling Review (Phase 1a)" is the first opportunity to see how the charity test (which in England and Wales we would call the public benefit test) is to be applied in Scotland. I have no problem with the concept of all charities, including independent schools, having to show how their activities benefit the public, but I would be very concerned if the Charity Commission were to follow OSCR's lead, concentrate chiefly on the ‘high fees’ issue and downplay other benefits which such schools bring to the communities which they serve and in which they operate,' he said.
He added: 'It speaks for itself that, if fees are not charged sufficient to cover costs, these schools will not remain in business. I remain hopeful that the Commission will take a much more holistic view of the benefits which such charities provide – benefits which they are rightly encouraged by politicians and commentators to offer.'
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