BULLETIN MARCH 2008

Subscriptions to this bulletin are climbing, so if this is your first one…My name is Daryl Martin. I head up a team of charity specialists whose aim in life is to free you up to do what you are there to do. This is a monthly bulletin going out to our clients, friends, contacts, friends of friends (well you get the drift), to keep them in touch with charity law, and anything else that might be helpful for them to know about. If you have anything to do with the world of charities, please read on, there might be something to excite your attention, who knows.

BUDGET:
Some good news here for charities that operate gift aid. The Chancellor announced that the 28 pence reclaim rate will remain in place for the next 3 years. This means that the expected loss of revenue of £300m will not take place. We had been expecting the rate to drop to 25%. Charities will have to submit claims at the lower rate but they can expect an adjustment probably in the first claim made in or after July. We will clarify this as we get more information. HMRC is also softening the terms of the audit process making it easier to deal with honest mistakes. If you do get an audit of your gift aid and need help, contact Janice for any help you might need. She seems to be in their good books these days and rightly so. Elsewhere in the budget there are some VAT changes which will impact on a small number of charities. Charities that re-home dogs stand to make big savings whilst charities that hire temporary staff are really under the cosh, (one big charity estimates £300k a year on their VAT bill). Ah well, it rains on the just and the unjust.

1,000th CLIENT:
We give every new client a number and we just went over the thousand. I am trying to get a press release together to blow the trumpet a bit. Well it is an achievement. We started this business with 6 clients, now we have over 750 live clients across the UK. We must be doing some things right; I’m very proud of the team, they are all committed to giving service over and above the normal, which hammers our profits (what are they?), but it does give us all a lot of satisfaction. By the way can we quote for your year end accounts? Fast, affordable, high quality service etc etc; what more can I say!

PRIVATE CARS USED FOR CHARITY BUSINESS TRAVEL:
It’s estimated that over a third of all corporate mileage is done in private cars, but only 2% of employers check that the car is safe and the insurance is appropriate. Put this against the thousands of cars being driven without any insurance at all, there is a risk. If you are a trustee you could be at risk. Current health and safety and road traffic law could put you in the frame if something goes wrong. Check out my briefing paper 006 on the subject.

STATUTORY BOOKS FOR INCORPORATED CHARITIES:
We are taking over Company Secretary duties for an increasing number of charities. This means that we have to have a detailed understanding of the legal requirements to keep records. This includes a requirement to keep a Register of Mortgages and Charges, with copies of any agreements to be lodged with Companies House together with a filing fee. (I wonder how this will be covered under the new CIOs when they are finally introduced.) Contact us if you need any help on this, or if you want details of our Company Secretarial services.

CANCER RESEARCH UK:
A few months ago this very worthy charity received a donation of more than £75,000. Apparently the thank you letter they say they sent never arrived, and the people who sent the money are a bit miffed. Hey, if that was me I would at least have telephoned; I might even have gone round and knocked on their door! The charity said that telephone calls are not made because they might be inappropriate, and they have no plans to change their procedures. Previous bulletins have pointed up the need for a considered professional approach to fundraising if we are serious about increasing our income during a time of increasing pressure on donors. Why not take a moment to review your own procedures. Contact us if you want guidance.

CIOs:
We are regularly being asked for our thinking on the new CIO charity structure that is soon to be introduced. Our concern is that still very little hard detail is known about them. They are not tried and tested, and when they are finally introduced they may not suit everyone. We may want to see a bedding-in process before they receive our full support. There are simply too many unknowns. If there is a need for you to incorporate or if it is something you are actively considering, contact us and we will look at your individual circumstances.

CHARITY COMMISSION & LATE ACCOUNTS:
The Charity Commission is cracking down on late filers. If your accounts aren’t lodged with 12 months of the (10 month) deadline, your charity will be removed from the register. If you are one of the 10,200 charities currently in default, and you want to stay on the register give us a call, we can help.

NORTHERN ROCK: A VERY ODD THING:
Someone might explain this to me. The Northern Rock put half of its mortgage book – almost £50bn worth – into a company called Granite, located in Jersey for tax reasons. Granite is owned by a charitable trust. The beneficiary of the trust is an organisation supporting Down’s Syndrome sufferers. They didn’t know they were the beneficiary and they never received a penny from Granite, and never will. Seems a bit smelly to me but what do I know?

CHRISTIAN RESOURCES EXHIBITION SANDOWN 13th to 16th MAY:
If you are planning to be there, here’s a way we can save you some money. If you are planning to be there, e-mail Ruth and she will send you as many complimentary tickets as you need, all free and each valid across the 4 days. All we ask is that you stop by and say hello to us.

EMPLOYING IMMIGRANT WORKERS:
I think I mentioned this before, but it’s important that you carry out the new checks required by law. The penalties for getting it wrong, knowingly or unknowingly, have significantly increased from the end of February. The BIA website will tell you all you need to know.

AND FINALLY........

Everything I need to know about life I learned from Noah’s Ark.

• Don’t miss the boat
• Remember, we are all in the same boat
• Plan ahead: it wasn’t raining when Noah built the ark
• Stay fit, when you are really old, you may be needed for a really big job
• Don’t listen to critics, just get on and do what needs to be done
• Build your future on high ground
• For safety’s sake travel in company
• Speed isn’t always an advantage: The snails were there with the cheetahs
• When you are stressed, float for a while
• Remember the Ark was built by amateurs, the Titanic (and the Millennium Dome!) by professionals.