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Nuffield Health's Charitable Status

Nuffield Health’s charitable status is not an optional extra, David Mobbs tells MPs

On Tuesday 8 July, Nuffield Health Group Chief Executive, David Mobbs gave evidence to the Parliamentary Public Administration Select Committee on Charity Commission guidance to Charities on public benefit.

He told the committee that Nuffield Health, which was established as a charity in 1957, is proud to be a charity that is committed to providing public benefit,

“Our purpose is for the public benefit, and we will continue to dedicate our assets and property for the public benefit and reinvest everything we earn to support that.  If our charitable status were lost for any reason, that would not change our purpose and we would continue to operate in that manner.”

In 2007 Nuffield Health delivered benefit to over 750,000 people, including 40,000 NHS patients and continues to invest in services for patients, setting ever higher standards for safety and customer experience.

David Mobbs broadly welcomed the Charity Commission’s guidance, saying that it “brings a new rigour to reflecting the time on how you deliver your public benefit”, but said that the Charity Commission had missed an opportunity to champion the values-driven, fee-charging charities that make up part of a diverse charity sector stating that;

“fee-charging charities have a significant role to play in society in the future.”

Enterprising, fee-charging charities should be the pride of the third sector. Charities, of course, gain some tax advantages, but in order to do so they commit to increased regulation, reinvesting all profit and perpetual restrictions on the disposal of assets. This is the full commitment, not half measures.

Notes

• The Public Administration Committee (PASC) announced on 10 June 2008 a short inquiry into the impact of the requirement in the Charities Act for all charities to prove their “public benefit” to retain charitable status and the financial benefits that go with it.

• On Tuesday 8 July 2008 PASC heard evidence from:

David Mobbs, Group Chief Executive, Nuffield Health

Ruth Jarratt, Director of Policy Development, Royal Opera House

Stephen Lloyd, Senior Partner, Bates Wells and Braithwaite

A transcript of the proceedings can be found at http://www.publications.parliament.uk/pa/cm200708/cmselect/cmpubadm/uc663-iii/uc66302.htm

For further information on the Public Administration Committee please visit http://www.parliament.uk/parliamentary_committees/public_administration_select_committee.cfm

The Committee will report on its findings in the Autumn.

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