BULLETIN JULY 2009

Let's get some tough bits out of the way first. If you are not feeling at your best, just scroll through to the ..And Finally.. which at least may help keep your blood pressure down.

PENSION REFORMS:
Each year the value of pension pots seems to be less than the previous year, which does deter people from investing in pensions. Nevertheless from October 2012 all employers will be legally obliged to offer a workplace pension with a minimum contribution of 3%. Now, this is a long way off so we can ignore it for a good while yet. It might be sensible to get this put onto your agendas now for a number of reasons:

1. You want to take good care of your most valuable asset - your staff.
2. Your budget in 2012 is going to be affected. How are you going to find the extra cash each month? Start planning now how you will raise it.
3. Looking at it now gives you time to think carefully about your options.
4. In any event, given the current economic crisis which is likely to worsen in the short term, there will be closures, mergers, rationalisation and staff reductions.

MERGERS:
Following on from the last item, if you do have thoughts of mergers or takeovers, my colleague Wizzy is fresh back from a conference organised to give information about grants that are available in certain situations. We already identified one client that would be able to benefit from this. Check out www.modernisationfund.org.uk or www.communities.gov.uk/communities/thirdsector/communitybuilders for more information.

SELF EMPLOYED CONTRACTS FOR SERVICES:
It's common for charities to claim their workers are self employed to save on tax and also avoid employment rights. I know a lot of pastors who see themselves as self employed. HMRC has challenged a couple of situations arguing that the contracts were a sham drawn up by an accountant to give the impression of self employment without representing the true working arrangements. The companies involved lost and had to pay a massive amount of back tax. I hate to rain on people's parades but if you are paid under a contract for services, make sure it is approved and watertight. E-mail us if you need more on this.

CHARITY ACCOUNTS SOFTWARE:
Paxton had a good package to start with, but they won't leave it alone and keep looking for ways to make it better. Viv reminded me that they have just started to sell version 3 which includes project costing. She, who is never easy to impress, (I stopped trying years ago) says it 'looks really good'. Download a demo from www.paxtoncharities.co.uk. Send an e-mail to Viv if you want some training.

EMPLOYEE OWNED CARS USED ON CHARITY BIZ:
I talked darkly in a recent bulletin about what might happen if any of your employees are involved in an accident whilst driving their own cars on charity business if a risk assessment has not been carried out. Rod Badams who runs the FIEC asked me to point out that Corporate Manslaughter applies to incorporated not unincorporated charities. He's right of course but I still recommend you assess the risk. When he wrote he mentioned that ordinary business use cover may have exclusions such as carrying cash and cheques to the bank. Thanks Rod.

TRUSTEE TRAINING:
We are getting a steady stream of bookings. I enjoy spending time with trustees and leaders trying to make charity law and regulations comprehensible and helping formulate good practice. Training can be the first thing to go when things are tough. Don't forget that a grant of up to £1,000 can be available under the 'Train to Gain' funding which the government has extended for another year. It's available for small companies and charities.

VOLUNTEERS GOING ABROAD:
This came up in a recent bulletin. David Wright of Global Connections told me that they have a code of best practice which charities involved in relief and development work will find useful. http://www.globalconnections.co.uk/resources/standardsinmissionpractice/CBP/code.htm. Thanks David.

WHY AM I HERE?
Life is getting so much faster and busier for so many of us who consider ourselves to be indispensible. I am teaching myself to ask this simple question whenever I attend a meeting, 'what difference will it make to me/to them if I don't show up at this meeting?' Often the answer is, not much. Make sure you are at meetings and events for a purpose. And if you do go, make sure you make an impact, make it count. Otherwise go and sit quietly at home. (Thanks Seth)

EXPENSE CLAIMS:
I don't really want to add to this debate, but a couple of practical comments won't go amiss. If you have to approve expense claims, check them without going over the top. If you just sign them off, you might give an impression that you don't care and bad practices will creep in. Be consistent. Make sure staff don't see your interest as a lack of trust, simply wanting to lead with good practice. Set a good example by making sure your own claims are checked and are realistic. You might identify people underclaiming, so you can make sure they get what they are entitled to. (Summary of Valerie Morton's thoughtful notes in Third Way)

SHARED TRUSTEE POST:
This is a new one to me, but the Kew Foundation recently appointed a husband and wife to take up one trustee post. Apparently it's common in the US. If there are good reasons there can be significant benefits. They can both attend meetings, but only have 1 vote.

DON'T SKIP THE WRITTEN APPLICATION:
We normally expect applications in writing for paid staff positions. Where volunteers are concerned we are often so glad that they have showed up we tend to skip the written application. Don't; it's an excellent tool helping to document the selection process and bring out issues, quite apart from helping keep you from a charge of negligence if it goes wrong later.

COMPLAINTS:
A sixteen year old damaged his arm in some rough play at summer camp. The youth leaders didn't pick up the problem as he was busy keeping a stiff upper lip. His Dad wrote a stiff letter telling off the people who were in loco parentis and said he wasn't taking it any further, so the leaders didn't worry too much about getting to the bottom of what happened. A year later the arm was still giving problems and suddenly there is the possibility of a legal claim. If a problem like this occurs make sure that there is a good papertrail. It's almost impossible to get proper witness statements a year down the line. I have a section in my trustees' manual about complaints. It's so important to have a clear policy outlining the steps to take if a complaint is made. Can save you a lot of time and stress later on.

COMPANIES ACT 2006:
This Act is progressively bringing in extensive changes to company law. It's important that your memoranda and articles line up with current law. A lot of charities are putting this off because of the expense involved. Ask us for a quote to review your governing documents. We are affordable. Also contact us if you are thinking of setting up a subsidiary company or a related charity or even a CIC.

AND FINALLY:

A better class of pun.

She was only a whiskey maker, but he loved her still.
A rubber band pistol was confiscated during an algebra class because it was a weapon of math destruction.
The butcher backed into the meat grinder and got a little behind in his orders.
A dog gave birth to pups on the roadside and its owners were fined for littering.
Two silk worms had a race and ended up in a tie.
Time flies like an arrow, fruit flies like a banana.
I wondered why the football kept getting bigger; then it hit me.
Two hats hanging on a rack; one said to the other, 'you stay here, I'll go on ahead'.
A sign on the lawn at the drug rehab centre reads, 'keep off the grass'.
A chicken crossing the road is poultry in motion.
And lastly, don't join dangerous cults; practise safe sects.

Roland Barklem, you excelled once again!)