Charities and Social Enterprises Legal Update Thursday 22 nd March 2018 Ward Hadaway Guest WiFi Email: guest@wardhadaway.com Password: F1rew0rk$ Newcastle | Leeds | Manchester
Housekeeping 2 Ward Hadaway Guest WiFi Email: guest@wardhadaway.com Password: F1rew0rk$ Newcastle | Leeds | Manchester
Agenda 3 8.00am Registration & refreshments 8.30am Introduction 8.35am Legal Update The potential impact of the Taylor review of modern working practices and 8.55am the legal status of volunteers and intern 9.20am Measuring Social Impact 9.45am GDPR update 10.10am Questions 10.30am Networking and close Newcastle | Leeds | Manchester
Charity Legal Update Fiona Wharton, Partner Newcastle | Leeds | Manchester
5 Introduction » Statistics » In the News » New legislation, guidance and consultations » Other reports and matters Newcastle | Leeds | Manchester
6 Statistics » From the Charity Commission (March 2018) » 900,000 NFP/voluntary sector » approximately 380,000 charities » 183,000 registered charities (15,000 linked) (highest for 10 years) » assets £264 billion » 39% less than £10,000 income » 72% income accounted for by 1.3% of charities » only 2,245 charities with income greater than £5 million » over 1 million paid staff » 950,000 trustee roles, occupied by approximately 700,000 people » 40% increase in applications for charity registrations » 3.6 million volunteers Newcastle | Leeds | Manchester
7 Statistics » Charity Commission: compliance cases » 503 monitoring » 1664 Regulatory Compliance » 618 governance » 187 Statutory Inquiry » 166 governance » 894 sets of accounts reviewed » 142 whistleblowing enquiries » 92 governance » 15 safeguarding » 2182 serious incidents reported » 1203 safeguarding (Commission definition) » 296 fraud/money laundering Newcastle | Leeds | Manchester
8 In the News » Oxfam » Charity Commission Statutory Inquiry » Governance » Disclosure to Charity Commission and others » Recruitment practices » Supervision of staff, volunteers » Progress with Charity Commission 2017 action plan » DFID and Charity Commission safeguarding summit » Government – aid watchdog? » 302 regulatory compliance cases on safeguarding (up from 163) » Charity Commission updated Safeguarding Guidance Newcastle | Leeds | Manchester
9 In the News » Charity Commission » new Chair and Chief Executive » Wider remit » renewed MOU with DfE » Charging for Charity Commission services » consultation planned » primary legislation will be required Newcastle | Leeds | Manchester
10 10 In the News » The Presidents' Club Charitable Trust » returning or keeping money » demonstrate in best interests of charity » check for restrictions on whether donation can be returned » may require Charity Commission consent » refusing donations » trustees act in best interests of charity » consider how funds raised, reputation, financial impact of refusing Newcastle | Leeds | Manchester
11 11 In the News » Grenfell and Terrorist Attacks » co-ordinate future responses to national critical incidents » Grant making charities » clarity of grant criteria » procedures and process Newcastle | Leeds | Manchester
12 12 New legislation, guidance and consultations » Legislation » CIO Regulations: conversion of charitable companies (& CICs) to CIOs (23 November 2017) » phased timetable 1 January – 1 August » smallest first » CICs September 2018 (consultation) » process includes new constitution and special resolution » date of conversion and removal at Companies House: same day » Business Names Index » sensitive words » letter of non-objection from Companies House Newcastle | Leeds | Manchester
13 13 New legislation, guidance and consultations » Automatic disqualification and waiver » waiver form February 2018 » auto disqualification 1 August 2018 » more reasons for automatic disqualification » new Charity Commission guidance » bankruptcy, unspent convictions for crimes involving dishonesty and deception » applies to trustees and senior managers (CE and CFO) » check recruitment systems, systems to identify current post holders » register of Disqualified Persons Newcastle | Leeds | Manchester
14 14 New legislation, guidance and consultations Law Commission: Technical Issues in Charity Law » For charities » more flexibility to obtain tailored advice when sell land, and removing unnecessary administration burdens » changes to law to help charities amend their governing document more easily – still with Charity Commission oversight where appropriate » increased flexibility to use their permanent endowment » removing legal barriers to charities merging » Charity Commission » single set of criteria to decide changes to a charity's purposes » increased powers to prevent charities using misleading names » ability to confirm trustees were properly appointed Newcastle | Leeds | Manchester
15 15 New legislation, guidance and consultations » Charity Governance Code 7 principles » Organisational purpose » Leadership » Integrity » Decision making, risk and control » Board effectiveness » Diversity » Openness and accountability » 2 versions: large and small charities » How has your charity implemented the Code? » Volunteer – run only charities - code to come » In discussion with funders » www.charitygovernancecode.org Newcastle | Leeds | Manchester
16 16 New legislation, guidance and consultations » Charity Commission Guidance: updated and new guidance » CC3: The Essential Trustee » How Charity Commission assesses waiver applications and makes decisions » CC32: Independent examination of charity accounts » CC25 Charity Finances: trustee essentials » Charity governance, finance and resilience: 15 questions trustees should ask » Safeguarding » Protect your charity from fraud » Serious Incident reporting Newcastle | Leeds | Manchester
17 17 New legislation, guidance and consultations » Charity Commission » Charities working internationally (25 March) » Charities working with non-charities maintaining your charity's separation and independence (15 May) – may be second consultation » Annual Return 2018 Newcastle | Leeds | Manchester
18 18 New legislation, guidance and consultations » Fundraising Regulator » Code of Fundraising Practice » Data protection updates » National Cyber Security Centre » Small Charity Guide » Information Commissioner Newcastle | Leeds | Manchester
19 19 Other reports and matters » House of Lords Select Committee on Charities » 43 recommendations » Charity Commission response » Term of office for trustees: 9 years » Charity Commission to update model Articles Newcastle | Leeds | Manchester
20 20 Other reports and matters » Eastside Primetimers » The Good Merger Index 2016/2017 » 167,000 charities – only 142 merged but 1700 new » New Philanthropy Capital / Lankelly Chase Foundation: Thinking Big » New Philanthropy Capital » Merger Articles » IPPR Report: The Value of Business to the Third Sector in the North Newcastle | Leeds | Manchester
21 21 Other reports and matters » More regulator changes » HCA – Homes England » Changes to consent and notification procedures for social housing bodies » Children's Investment Fund Foundation (UK) v Attorney General [2017] » membership of a company limited by guarantee Newcastle | Leeds | Manchester
22 22 Any questions? Fiona Wharton Partner | Head of Charities and Social Enterprise E: fiona.wharton@wardhadaway.com T: 0191 204 4219 Newcastle | Leeds | Manchester
The potential impact of the Taylor review of modern working practices and the legal status of volunteers and intern Jamie Gamble, Partner Newcastle | Leeds | Manchester
24 24 Content » Employment Status » The Taylor Review » Volunteers Newcastle | Leeds | Manchester
25 25 Employment status » Employee means "an individual who has entered into or works under a contract of employment" » Contract of employment means "a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing" » Key factors Newcastle | Leeds | Manchester
26 26 Employment status » Worker : » A contract of employment. » Any other contract, whether express or implied and (if it is express) whether oral or in writing, whereby the individual undertakes to do or perform personally any work or services for another party to the contract whose status is not by virtue of the contract that of a client or customer of any profession or business undertaking carried on by the individual. Newcastle | Leeds | Manchester
27 27 Employment status » Is there a contract? » Offer » Acceptance » Consideration » Intention to create legal relations Newcastle | Leeds | Manchester
28 28 Determining employment status Control Mutuality of obligation How to do it Provide work When to do it Where to do it Accept work What to do "Other Factors" Personal Service Provision of equipment Degree of integration Right of substitution Financial risk Opportunity to profit Newcastle | Leeds | Manchester
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