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School retains charitable status School retains charitable status
(about 3 hours later)
Regulators have ruled that a fee-paying school should continue to enjoy charitable status.Regulators have ruled that a fee-paying school should continue to enjoy charitable status.
The Office of the Scottish Charity Regulator (OSCR) decided that the High School of Dundee meets a new "public benefit" assessment.The Office of the Scottish Charity Regulator (OSCR) decided that the High School of Dundee meets a new "public benefit" assessment.
The case was the first of its kind since new legislation was introduced by the Scottish Parliament in 2006.The case was the first of its kind since new legislation was introduced by the Scottish Parliament in 2006.
Under the rules, charities must be able to demonstrate they have a charitable aim and benefit the public.Under the rules, charities must be able to demonstrate they have a charitable aim and benefit the public.
All 16 charities scrutinised by the new Office of the Scottish Charity Regulator satisfied the regulator that they provide public benefit. The High School of Dundee, whose fees range from £5,841 to £8,304 a year, qualifies due to the range of bursaries and access to its facilities offered to the local community.
As a result, the organisations will continue to receive tax relief. Our status as a charity will ensure that we can continue to support the advancement of education within our local community and beyond. Rector Mike Duncan High School of Dundee
Other independent schools across Scotland are likely to face similar scrutiny in the coming months. But of the other 16 organisations studied under the new regulations, John Wheatley College in Glasgow and the Voluntary Action Fund, fell foul of rules regarding the wording of their constitutions.
'Public benefit OSCR chief executive Jane Ryder said the regulator reached the ruling after taking into account the High School of Dundee's wider community benefits.
Critics of the charitable status enjoyed by the High School of Dundee, which charges annual fees of about £8,000 for day pupils, have described them as "elitist educational businesses". She said: "There was in Dundee's case a certain amount of local and national benefit which wasn't charged for.
Defenders of the sector claim they save the country 35 times as much as they receive in tax relief, because their pupils do not take up places in state schools. "What we looked at was those benefits against those that are charged for, in this case they made facilities available to local groups and they support the national curriculum."
They point to the number of less well-off children who are able to enrol in independent schools because of grants and scholarships. Assisted access
Despite interest in the ruling, the decision will not set a precedent for every fee-paying school with charitable status, as each will be judged by the regulators individually. She added that a key feature was how widely available bursaries were, with around 13% of pupils receiving some kind of financial support.
The Office of Scottish Charities Regulator (OSCR) is the independent registrar and regulator for Scottish charities. Mike Duncan, rector of the High School, said he was delighted with the ruling.
It has powers to grant charitable status and to investigate and take action in cases of mismanagement and misconduct. He added: "Our status as a charity will ensure that we can continue to support the advancement of education within our local community and beyond.
The Charity Commission for England and Wales is currently consulting on how to implement a similar test of "public benefit" south of the border by early next year. "Most importantly of all, it will enable us to continue to offer financial assistance to support those pupils who without that help may otherwise be unable to attend."
The regulator will now continue assessing each of the country's 59 independent schools on a "case by case" basis.
it remains to be seen whether the confirmation that Dundee High School meets the charity test will set a benchmark Martin Sime SCVO
The 16 groups which volunteered to be studied under the first round of pilot reviews also included miners' welfare societies, museums, a church, playgroups and a university.
The Scottish Council for Voluntary Organisations (SCVO) chief executive, Martin Sime said described the assessment process as important for Scotland's charities.
He added: "On the issue of fee paying schools, it remains to be seen whether the confirmation that Dundee High School meets the charity test will set a benchmark for community benefit and assisted access, or be the thin end of the wedge for schools who have higher fees and offer fewer benefits to their communities."
Regulators will now press on with assessing the 23,500 groups already registered when the watchdog was set up.