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	The Pharmaceutical Journal Vol 270 No 7251 p748-749 31 May 2003	This page Reprint Photocopy
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The Society

Is the Society seeking charitable status, or is it not?

Is charitable status a boon or a burden?

Is the Society seeking charitable status, or is it not?

From Mr P. Walton, MRPharmS

At the recent annual general and branch representatives' meetings the President insisted that there was no proposal for the Royal Pharmaceutical Society to seek charitable status. One member stood up brandishing a copy of The Pharmaceutical Journal in which there was a statement to the effect that there was such a proposal. This was almost flippantly put down to journalistic misrepresentation (PJ, 24 May, p733). I know that there were scribes present who undoubtedly took a word-perfect account of the proceedings, and believe that this slur on the PJ should be investigated and clarified. A professional journal is a window on the profession itself. Therefore it is important that cheap shots at its journalists are not allowed to go without comment.

Philip Walton
Manchester

ANN LEWIS, Secretary and Registrar, Royal Pharmaceutical Society, replies:

It may be helpful to set out the facts of the position. The Council has considered charitable status on three occasions.

Initially, the subject was raised in December 2001 in a presentation by Horwath Clarke Whitehill (HCW), the Society's external auditors.

The Council has a responsibility for prudent management of resources and a proper exploration of measures to minimise the tax burden and maximise available resources for the benefit of the Society is a proper application of good governance.

The Council agreed to seek advice on whether the Society was already under a duty to register as a Charity under Section 3(7) of the Charities Act 1993. The advice received was to the effect that there is no duty to register.

The Council considered the issue of charitable status again both at an informal discussion on 3 December 2002 and again at its formal meeting on 4 December.

At the meeting on 4 December, the Council made an in-principle decision to seek registration with the Charity Commission, once the implications of charitable status had been explored. The Council decided to make this decision public and a press notice (PDF 15K) was issued.

Before any application to register with the Charity Commission could be made, there would have to be a detailed proposal to the Council. This would require:

(i) a further analysis of the benefits and any possible disadvantages of charitable status

(ii) an explanation as to how the Society might gain charitable status

(iii) a proposed resolution to be considered and (if thought fit) passed by the Council to authorise an application for formal registration with the Charity Commission.

No such proposal has been framed or brought before the Council at this time. It follows, therefore, that there is no proposal made or pending to the Charity Commission.

Is charitable status a boon or a burden?

From Dr M. A. Cymbalist, FRPharmS

I write as a non-practising pharmacist and a non-practising law graduate. My view is that our Royal Pharmaceutical Society with its special dual role should beware of the financial lure of charitable status. Many of the Society's activities that we take for granted at present could fall foul of the rules. I can all too easily envisage endless dialogue with the powers that be over such activities, with inevitable delays: a characteristic of officialdom not unfamiliar to pharmacists.

We do not know if the Council wishes to fetter itself with such restrictions or indeed whether it knows what it is taking on. In fact we know little of what has been taken into account in its deliberations.

Should the Council wish to go ahead with the proposal, it is only reasonable that every member should have the opportunity to make an informed assessment. To achieve this, advice from those well qualified and experienced in the practicalities of charitable status, should be sought and made available, together with reports of subsequent discussions and draft proposals of Council, to the membership for consultation before any further move is made. Till then, for my part, I remain firmly opposed to placing the Society at the tender mercies of the Charity Commissioners.

Michael Cymbalist
London NW11

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