charity law update and q&a for advisors
DESCRIPTION
From the Wales Charity Law and Governance Conference 2014.TRANSCRIPT
Charity Law Update &Q & A Session for Advisors
Giselle DaviesPartner, Geldards LLP
Charity Law Update• CIO Implementation• Registration issues• Transfers from Local Authorities• Charities & Government Policy• Sector round-up / recent highlights
CIO Implementation• Legislation progress?
• Practical acceptance?
Yes - Creation of new charitiesYes - Creation for “incorporation”Yes - No minimal income limitsNo - Conversions from companies or I & P
Societies
Yes - Used for most new start ups now, unless good reason for CLG
Registration Issues• Post “Cup Trust”:
- Harder to register- More focus on Public Benefit information- More follow up questions- Evidence required- Reasons to say “no” rather than say “yes”- Private benefit- Relationship with individual or corporate sponsor
Transfer from Local Authorities• Watch out for:
- LA control- Trustee conflicts of interest / loyalty- Pension issues relating to staff transfers- Ownership of buildings – risks
Charities & Government PolicyE.g. Climate change reduction; waste recycling; ethnic minority participation; voluntary sector skills; encouragement of social enterprise•Watch out for:
- Independence issues- Political neutrality- Risk transfer from funder- Unrecorded instructions / changes to grant schemes- Lack of adequate supervision / reporting requirements
Sector Round Up• Learning lessons from Dove Trust• Recent Tribunal / Court / CC decisions• Continuing need for mergers• Social investment matters• Treasury consultation• Annual return changes
Dove Trust / Charity Giving Website• In administration• Decision on distribution of remaining funds• Lessons:
- Who is the contract with?- Read the small print- Ensure early transfers of funds- Check the safeguards/insurance
Tribunal / Court decisions• Bath Recreation Ground
- Still ongoing after 15 years- Main issues – use by public v use by Bath RFC &
control by LA- Will permission for further appeal be granted?
Regentford Limited• When has charity ceased to operate?
- Reinstated to Register of Companies but- No charitable activities- CC right to refuse to remove from register
Appeals against CC decisionsColman v CC•Former trustee•No standing at Tribunal•Same as any other member of public
CC Inquiries• Double Defaulters
- Class Inquiry for non-filers of accounts• Other themes
- Governance- Management & administration - Financial Management- Overseas work- Purchase / use of property- Fundraising- “faith” charities
Need for Mergers• Worsening economic position for charities• Local authority reorganisation• Geographical / Cross sector commissioning
Social Investment• By charities – Law Commission Consultation
on need for new statutory power (to 18/06/14)
• By “investors” – Social Investment Tax Relief
HMRC / Treasury Consultation (Results awaited)•Aim to avoid another “Cup Trust”But:•Donations to charity attract tax relief•How to balance need for caution but avoid discouraging genuine philanthropy?
Annual Return Changes• New questions:
- Raise funds from public?- Trading subsidiary?- Payment to trustees- Policies in place?- Another regulator?- Make grants predominantly?
Your questions…
Thank You
Contact details
Giselle DaviesDD: 029 2039 1797M: 07918 651 663E: [email protected]