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BULLETIN SEPTEMBER 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.
CODE OF CONDUCT FOR COMPANY DIRECTORS:
The new Companies Act is gradually rolling out and additional provisions come into force on October 1st. I put
out a summary a few months back. If you are a trustee of a company charity it might be worth reviewing a copy. I am working with 3
charities right now where there are significant conflicts of interest which need to be addressed. 2 charities working together with
some trustees in common is not unusual. If you have a similar conflict of interest this could be a good time to review your situation.
The time to do it is when relationships and trust levels are high. If they ever break down it’s much harder to address. We can still
help but we are into damage limitation, and people start getting hurt.
See our notes for further information. Code of Conduct for Charity Trustees.pdf
HOAX VIRUSES:
Whilst writing this someone sent me (and a thousand or two others) a warning about the Life is Beautiful virus.
These warnings are well meant but if you do perceive a threat, check it out before you pass it on. If it’s a hoax (as this one is) you
lose credibility and people’s in boxes get ever more clogged.
Hoax-slayer is one of the better sites to keep you posted.
REGISTERING ‘EXCEPTED’ CHARITIES:
Some thousands of churches are now required to register with the Charity Commission under the new Act, although
the deadline for churches with a turnover of more than £100,000 to register has been extended, it makes sense to get it over and done
with. The various regulatory bodies have done a good job in getting model documents agreed with the CC to speed up the process. Couple
of observations here: The recommended governing document may not fit all; for example there are basically 3 different models of church
governance: Congregational, Episcopalian, Presbyterian. Your church whatever its denomination will fit somewhere into one of these. The
model document offered to you will be drawn up in accordance with your historical model, not necessarily reflecting where you are now in
your current practice. We prepare our documents to reflect your current leadership model. Let us know if you want more details. The other
point is that I have seen one umbrella body recommending a simple trust rather than incorporated. I don’t know why they have done this
as there can be some good reasons to be incorporated.
E-mail us if you want more information, or someone to come and explain things.
CHARITY COMMISSION UPDATE:
The CC says in its first annual review of its compliance work that poor basic accounting and reporting is at the
heart of most charity malpractice. As well as breaking the law, poor practice can cause long term problems for charities. The report
goes on to give good advice on fundraising, good governance, fighting fraud, and dealing with internal disputes.
CIOs:(Charitable Incorporated Organisation)
This has moved a step closer. A consultation period has just begun and will run to the end of the year
(10th December). Sometime next year hopefully it should be rolled out. We will be looking at it carefully before we recommend it to our
clients. I’m not in great faith for it. If your incorporation plans are on hold best advice is still not to wait if there is good reason
to incorporate.
THE CRUNCH:
We may have a government that only ever talked about prudence without ever seeing the need to practise good
housekeeping. Any fule should know that 7 fat years are likely to be followed by 7 lean years. We don’t have the luxury of having an
unlimited purse and we must be good stewards of what we have been entrusted with. Your charity won’t be exempted from the downturn and
many are reporting reduced levels of donations. About a third of charities in a recent survey have made redundancies, and more than half
have restricted pay increases. Despite this, one in four charities have seen demand for their services increase. Don’t forget that in a
couple of years the additional Gift Aid payments will stop and you will have to make up that shortfall. Make sure you are actively and
creatively looking for ways to maximise Gift Aid, cut costs, and build your income. AIG are sponsoring Man U over £65m. I wonder how
safe that is?
BANKING COSTS:
Thanks to the many readers who responded to my request for information. Sifting through it, the only pattern that
emerges is that whatever they tell you, there is local discretion. The same bank has different practices in different branches. We bank
with HSBC and they don’t charge us. How long free banking will apply, we know not, especially with all the banks that have been happily
lending in recent years without any clear idea of what security they are lending on. They are going to have to start making profits the
hard way, but we will be the ones to pay the price. Couple of useful points did emerge: CAF Bank comes highly recommended. Also the
Reliance Bank, Triodos Bank and Kingdom bank are worth checking out (I think only Reliance offers banking facilities). I doubt any of
these have been venturing into the esoteric areas that have impoverished their so sophisticated and greedy brethren.
(Forgive my bitterness but I was 33 years working for the Halifax and we never had any of that nonsense in those days. I never lent
money without knowing who I was lending it to and how they planned to pay it back!)
SMALL CHARITIES:
Even the small charities make a lot of difference to our society. To make life a bit easier charities with an
annual income below £5,000 no longer have to be on the register. You can remain on the register if you wish. Whether or not a charity
is registered it still comes under the jurisdiction of the CC, so it doesn’t mean you can do what you like. This could help up to
40,000 charities.
PETROL OR DIESEL:
My reminder about taking care when you fill your car touched a nerve with a number of readers. Someone wrote to say
that the £110 figure for repairs probably applied if the vehicle hadn’t been driven. The damage is done and the cost escalates into
thousands if the car is started. So, if you put in the wrong fuel, don’t even think of starting the engine, just push it away from the
pump. Enough of that, just be warned. (Last week was a tricky one for me. I made a number of silly mistakes including trying to get the
diesel pump into my (petrol) tank. Fortunately it doesn’t work that way round)
UNFAIR DISMISSAL CLAIM:
Some of these stories are unbelievable. In July a West Country bar owner was ordered to pay a former employee more
than £53,000 for harassment and ‘discriminatory’ dismissal. It all started when the bar manager attempted to kiss her (along with other
things). When she complained to the boss, he sacked her by text. It’s hard to take seriously that this actually happened but it did
(Source: National Bullying Helpline and Professional Manager). If any of your employees acts inappropriately to another member of
staff, and if any of your staff have a grievance, take it seriously. We have access to high quality HR support to keep you out of
trouble. We can provide a range of expertise, contracts of employment, advice, training etc.
VOLUNTEERING CAN HELP YOU LIVE LONGER:
Some good news for that dedicated army of people who do so much stuff without any pay in so many parts of our
communities. 86 out of 87 health studies carried out by the University of Wales found that being a volunteer boosts confidence and
self-esteem, reduces hospital visits, and helps people cope better with depression, stress and illness. So when you lay the cosh on more
people to serve coffee after the Sunday service, or clean out the toilets at the annual youth camp, you are doing them a good turn.
Don’t forget to tell them this.
CHILD PROTECTION:
CCPAS reports that every week they get seriously ‘blemished’ disclosures, where proper procedures have not been
followed. One of the main issues is failure to get a voluntary disclosure form completed at the beginning of the recruitment process.
If this isn’t done, it can lead to someone being declined for all the wrong reasons and then it’s too late. It’s worth getting the CCPAS updates.
CATHEDRAL LOSES £80,000:
This is about the item in my last bulletin. I got rapped over the knuckles ever so gently for having a bit of an
edge to my comments. Do keep me from any tendency to get self righteous. I have lost plenty in my time.
TRUSTEES BRIEFING:
Next briefing day is on Friday November 14 at our office in Walberton.
Email Kathy for details.
CAN WE DO SOME WORK FOR YOU?
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:
AND FINALLY(1)........
Our pastor, a gifted preacher, has a habit of starting his wonderfully anointed and
challenging sermons with a (usually) terrible funny story.. This is the one I am about to send him to try and lift the tone a bit.
My small granddaughter received a watch and perfume for her birthday. Melissa (name changed obviously) was so excited she pestered
everyone all day to look at her watch and smell her perfume. At the birthday dinner, her mother said, ‘Sweetheart, I know you’re proud
of your gifts, but please don’t mention them while we eat’.
All through dinner Melissa sat silently although she sniffed audibly at times and often raised her wrist to listen to her watch ticking.
As the meal came to an end she blurted out, ‘I’m not supposed to mention it, but if anyone hears anything or smells anything, it’s me’.
(Thanks Clara Null, Oklahoma City)
AND FINALLY(2)........
Often I learn more from my clients than they learn from me. This is an aside in a letter Bruce wrote to me: The
word gassho is a Japanese word meaning to bow respectfully. It can be related to religious prostrations in most religious traditions.
A young student comes to the old Rabbi, and asks why we cannot, or can no longer, see the Face of God. The old Rabbi says it is because
we can no longer bow deeply enough before the Lord; we no longer know how to submit to His Will. This is especially poignant for me right
now with so many getting burned chasing after strange fire like Nadab and Abihu, and offering unholy incense. May the lessons learned
lead us to recover a sense of awe and obedience.
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