Dorset Community Foundation • We believe in a strong voluntary sector • We believe in the power of Philanthropy to achieve social good • We provide funding to local community groups and smaller charities • We provide a Philanthropy Service to Individuals, Families, Companies, Charitable Trusts, Government • We aim to be a voice for the small groups we support
l In 12 weeks l Received over £1,000,000 in applications l Awarded over 180 grants l £500,000+ granted to projects l Raised over £700,000 in donations and support
Strategic grants supporting Dorset voluntary sector Complimenting statutory services (e.g. hospitals) Mental health support for older people Mental health support for others Support for young people, including education Domestic/sexual violence Disabilities & serious illness Supporting those in hardship, including Homelessness Food/hot meal provision focusing on those in hardship Food/medication doorstop delivery service focusing on those self-isolating
E: grant@dorsetcf.org T: 01202 670815 @robsonDCF / @DorsetComFnd W: www.dorsetcommunityfoundation.org
Charity Accounting Update Jen Richardson ACA FCCA DChA 1
• Strategic and Operational Planning • Reserves and Working Capital • Compliance and Reporting • Useful Resources 2
Strategic and Operational Planning Your crisis team or sub committee should continue to meet regularly (Virtually or via conference • call) Regularly review and update your risk assessment • Prepare a cash flow forecasts on a week by week basis for twelve weeks • Ø You are more in control of outflows than inflows Ø Communicate with creditors, debtors and funders Ø Review and update your cash flow on a regular basis Know your charitable objectives • Forecast where you will need to be in three months and in six months and next year • Look at government rescue packages (full details on https://www.wardgoodman.co.uk/hub/) • Consider gift aid payments from trading subsidiaries • 3
Compliance and Accounts Disclosures Financial Statements and TAR Filing deadlines • Ø You can apply to the Charity Commission for an extension - filingextension@charitycommission.gov.uk Ø If you are a limited company follow the Companies House guidance Ø Discuss going concern with your auditor or independent examiner (use your cash flow forecasts) https://www.charitiessorp.org/media/648486/sorp-covid-19.pdf • Consider material uncertainty • • Accounting for government support packages Updates on reporting to the Charity Commission • Ø https://www.gov.uk/guidance/reporting-serious-incidents-to-the-charity-commission-during-the-coronavirus- pandemic 4
Reserves and working capital • What level of reserves do you currently hold? Ø General Ø Designated Ø Restricted Ø Permanent endowment • What do you need to deliver your core objectives? Do you have scope creep due to Covid-19 activities • Are you asset rich but cash poor? • • Repurposing funds with the agreement of donors 5
Additional Resources Dorset Ward Goodman COVID-19 Hub https://www.wardgoodman.co.uk/hub/ DCA https://www.dorsetcommunityaction.org.uk/state-of-the-sector-in-dorset- survey/ VCD https://www.volunteeringdorset.org.uk/ CAN – BCP http://www.bournemouthcvs.org.uk/ Nationally Government https://www.gov.uk/ NCVO https://www.ncvo.org.uk/ Small Charities Coalition http://www.smallcharities.org.uk/ Charity Commission https://www.gov.uk/government/organisations/charity- commission Charity Tax Group http://www.charitytaxgroup.org.uk/ Association of Chairs https://www.associationofchairs.org.uk/ 6
Jen Richardson BA (Hons) ACA FCCA DChA Head of Charities T : 07918 745131 E : Jen.Richardson@wardgoodman.co.uk 7
Charities – Legal Update Geoff Trobridge July 2020
Charities – Legal Update • Charities and Leases - The Tenant’s Perspective • No right to withhold rent • Lease unlikely to be frustrated • Any arrangement must be with the agreement of the landlord – unless there is a break clause • Options • Rent reduction • Rent suspension – interest? • Use rent deposit monies • Service charge reduction • Other Considerations • Rent review clause • Break clause • Period of deferral • Top up of rent deposit deed • Document the Agreement Email: Geoff.trobridge@LA-law.com Tel: 01202 786138 www.lesteraldridge.com
Charities and Leases – Investment Properties • Code of Practice for the Commercial Property Sector “Landlords should provide support to a tenant where reasonably possible, whilst having regards to their own financial commitments and fiduciary duties”. • Charity trustees have a fiduciary duty to act in the best interest of the charity. • If a request for a rent reduction is made: • Investigate the tenant’s financial position • Consider the risk of insolvency and having a void • May take account of reputational risk • Consider all the options set out above (previous slide). • Restrictions on Landlords • All possession proceedings current on 27th March suspended until 23rd August. • Cannot forfeit a lease by re-entry before 30th September. • Temporary halt to winding up petitions until 30th September Email: Geoff.trobridge@LA-law.com Tel: 01202 786138 www.lesteraldridge.com
Charities in Financial Difficulty - Duties of Trustees • Unincorporated charities - personal liability for debts if the debts cannot be paid out of the assets of the charity • Charitable Companies and CIOs • Test of Insolvency • Unable to pay debts as and when they fall due AND • The debts exceed the assets. • Duty to Creditors overrides duty to Beneficiaries when company or CIO is insolvent • Wrongful Trading • Continuing to operate when the trustees knew or ought to have known that there was no realistic prospect of recovery • Corporate Insolvency and Governance Act 2020 • It is to be assumed that a (trustee) is not responsible for any worsening of the financial position in the period 1st March 2020 to 30th September 2020 Note: • cannot be used as an excuse where the company was insolvent prior to 1st March • may still be in breach of trustees’ duties • Restricted Funds • May not be insolvent but if recourse has to be made to restricted funds, trustees may be in breach of duty • Serious Incident Report Email: Geoff.trobridge@LA-law.com Tel: 01202 786138 www.lesteraldridge.com
Charities in Financial Difficulty - Duties of Trustees • SAFEGUARDING • The Charity Commission report on the RNIB • DUTIES OF MEMBERS • Re Ethiopian Orthodox Tewakedo Church of St Mary of Dibre • Members of a charity have a duty to act in what the member considers to be the best interests of the charity. How can that be challenged? Email: Geoff.trobridge@LA-law.com Tel: 01202 786138 www.lesteraldridge.com
Thank you Visit: www.lesteraldridge.com for more information Email info@LA-law.com or call +44(0)1202 786161 The webinars delivered by Lester Aldridge LLP are provided for information purposes only and they are general in nature. They do not constitute legal or other professional advice and should not be relied upon as such. No responsibility for the accuracy and/or correctness of the information, or for any consequences of relying on it, is assumed or accepted by any member Lester Aldridge LLP or as Lester Aldridge as a whole. The content does not negate the requirement for comprehensive assessment of each specific circumstances. If you have any questions relating to this disclaimer or if you require legal advice, please contact info@LA-law.com.
Governance Update 3 July 2020
Steve Place Senior Advisor Community Action Network steve.place@can100.org 01202 466130 07966742933
Organisational Structure • Members -work together for a common goal • Governing document –rules for how group is run • Delegate running to a ‘committee’ • Fundamental decisions made by members e.g. changes to governing document, closing • Both groups can be the same people or more members than ‘committee’
What type are you? • Have to have member meetings? Check your governing document • Understand when you need a member decision Check your governing document • Get a member decision Check your governing document • Record and file (if necessary)
Covid 19 and Meetings Committee/Board If hear and see each other • Governing document can allow hear • Written resolutions • Member meetings Can use hear and see BUT • Written resolutions but unincorporated • can’t if not in the governing document
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