BULLETIN OCTOBER 2008

A MONTH IS A LONG LONG TIME:
So much being written about the crisis that's upon us it's hard to know what to say that hasn't been said. But here goes anyway. It seems that most of the world's governments have been building on sand and it has all collapsed spectacularly. Greed overtook prudence a long time ago. We will all pay the price. Charities are already being hit hard, either by reduced income, which will continue for sometime to come, or by unwise investment policy. Many charities will be forced to shut down, the good along with the bad, others will have to cut back at a time when demand for their services is needed more than ever. There will be more mergers and takeovers and rescues. What can be done to help charities that are struggling?

• This is a time to batten down hatches and get control of costs. Plenty of scope in many charities to reduce overheads. If you have thoughts and ideas you want to share please let me know. If you don't control your costs you may not survive.
• This is a time for all of us to increase our giving to charity. Let's all aim to give more this year than we did last year. If you don't the organisations you support may not survive.
• Let's make sure our fundraising is well thought out. In my researches I have seen plenty of excellence and good practice, but too much mediocrity. Any organisation that is weak in these areas may not survive.
• The trustees must ensure that they get regular good quality financial information. If you don't you could endanger the organisation (and might even end up negligent!)
• If you are considering a merger or if you need rescuing or are even in a position of being able to help others at this time, I am happy to hear from you. We can give advice and support to mergers and takeovers. We will even help you shut down if it comes to that.
• If you need to claim compensation for lost savings check: www.charitycommission.gov.uknews/ice.asp (For Icelandic Bank losses.) Most charities will be able to get their money back (in time), though there are exclusions. The charity that had £10m invested in an Icelandic bank is not in a good position, though I am bound to ask what their financial advisors were about!
• Someone asked whether their charity should spread their investments around to take account of the £50,000 limit for Financial Services Compensation Scheme (FSCS). Yes, you should (although a purist might say £45,000 to take account of accrued interest). Check this web page: www.charitycommission.gov.uk/news/fincomp.asp. Most charities are covered but not all, so you need to check.
• Are you maximising your Gift Aid claims? We keep being told about the millions of pounds not being claimed, so someone must be losing out on this! Talk to Janice if you need help.

DEBT ADVICE:
There will be lots of colleagues, friends, neighbours and plenty of church members who are sinking under a pile of debt and getting increasingly desperate. There are lots of good debt advice agencies; make sure you have good contacts to refer people on to. John Pitt is doing some amazing work at www.frontlinedebtadvice.org.uk If they haven't a branch in your area, they can link you through to someone. If your church can set up a debt advice service, talk to them.

CODE OF CONDUCT FOR GOVERNMENT:
This actually happened, names deleted though it's all in the public domain: charity gives £7,500 to the Labour Party and pays the same again to attend a fundraising dinner. The CC is informed and swiftly tell all parties that this is illegal. The money is returned. But here's the rub! The charity said it was an administrative error and the money should have come from the trading arm. Oh, so that's not illegal then? Here we have a charity in complete ignorance of charity law, with a turnover in the millions. Pull the other one! But it gets worse. The Labour party goes on record as saying that this is 'allowed under party funding rules' and they checked it with the Electoral Commission. So, not only does the Labour party not understand the law, neither does the Electoral Commission.
When will we get standards back into our public life? I am angry because our calling is to help charities be whiter than white and be accountable and transparent. Most of our charities are governed by ordinary people who don't sleep at night if they can't account for every penny. All I can say to this army of ordinary people is: Please continue to set standards of integrity and public behaviour and, who knows, you might shame our rulers into following your example! At least the CC emerges with credit. Well done them. (By the way the charity's latest accounts are well overdue so I wonder what else needs to be brought into the light.)

RED BORDER FOR OVERDUE ACCOUNTS:
If you thought the naming and shaming of charities on the CC website with overdue accounts was bad enough, check out their new online register. Almost 5,000 charities that are overdue have their profile highlighted with a red border. Charities are up in arms about it and say it's unfair. And I thought only children complained that life is unfair. The answer is to get your accounts in on time. If you need help contact us, we have a fast affordable service. Also we will help you get on track with whatever led to the delay in the first place. Company charities tend not to get caught out like this as they get hit with a succession of Companies House fines. If a charity can't get its accounts and returns in within 10 months there is usually a problem, but we can help.

REDUNDANCIES:
I spoke today to Nat, who partners with us in HR issues (NVM HR & Recruitment). She is acting in 2 cases which are going to tribunal where staff have been made redundant and correct procedures have not been followed. If you need help to get it right first time, get in touch with us.

PAXTON SALES OPTION AND UPGRADE:
Paxton Charities Accounting software now comes with a new sales option for charities that regularly produce invoices.(See their website for more details: www.paxtoncharities.co.uk/sales.htm)
If you have been using Paxton Charities Accounting for some time, we recommend that you look at upgrading your current version to the latest version in order to gain from some new general features. Paxton can now import details of donors, customers, suppliers and products directly from an Excel spreadsheet. Please contact Paxton for further information about these new options on: 01234 216666. For details of training on Paxton Charities Accounting software - please call our office and ask for Viv: 01243 555611

TRUSTEES BRIEFING/TRAINING:
My next day for a local briefing is Friday November 14th. Plenty of room so if you want to be a part of this day, e-mail Kathy for a booking form. Always lots to talk about.

MIGRANT WORKERS:
I may have mentioned this before, but charities do employ a lot of workers from overseas so this is important. If you plan to employ people from outside the EU, you must hold a sponsor licence and be registered with the UK Border Agency. You must apply before October 1st. They are tightening up. I have a good friend whose visa ran out and he didn't go home. Last week he was arrested and whisked away.

CHILD PROTECTION:
Shot myself in the foot here. Got my enhanced disclosure form back last week. Had to be checked as I am a trustee of our church. They now want me to run one of the Sunday Schools! Blazers or Sparklers or something! I'm now in hiding. Some of those children are monsters.

HOW CAN WE HELP YOU KEEP UP TO DATE?
It's increasingly important to be well taken care of to make sure you meet the legal and important operational requirements in a fast moving environment. We can:

• Hold a briefing for trustees and leaders in your area
• Review your governing document, and get it brought up to date
• Provide help and advice if you hit a tricky situation. A lot of conflict of interest issues are surfacing following the new legislation
• Prepare your year end accounts to meet the statutory requirements
• Help with your Gift Aid
• Help you with any CC or HMRC issues
• Help with any HR issues, contracts of employment

AND FINALLY(1)........
You think it's bad here; how is the Japanese banking sector faring? In the last 7 days:

• Origami Bank has folded
• Sumo Bank has gone belly up
• Bonsai Bank announced plans to cut many of its branches
• Karaoke Bank was sold for a song
• Samurai Bank has suffered sharp cutbacks
• Ninja Bank took a big hit but remains in the black
• 500 staff at Karate Bank got the chop
• The staff at Sushi Bank say they got a raw deal and claim something fishy is going on

THE PRAYER OF SIR FRANCIS DRAKE:
Disturb us Lord, when we are too pleased with ourselves. When our dreams have come true because we dreamed too little. When we arrived safely because we sailed too close to the shore.
Disturb us Lord, when, with the abundance of things we possess, We have lost our thirst for the waters of life. Having fallen in love with life, we have ceased to dream of eternity. And in our efforts to build a new earth, we have allowed our vision of the new Heaven to dim.
Disturb us Lord, to dare more boldly. To venture on wider seas. Where storms will show your mastery; Where, losing sight of land, we shall find the stars. We ask you to push back the horizons of our hopes; And to push into the future, in strength, courage, hope and love.