Dorset Community Foundation We believe in a strong voluntary sector - - PowerPoint PPT Presentation

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

3

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

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

5

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

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/

Additional Resources

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)

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

Covid 19 and Meetings

Corporate Insolvency and Governance Act 2020

Available to companies, CIOs and a range of mutual organisations. The flexibilities are not available to organisations established by an Act of Parliament or Royal Charter or to unincorporated bodies. AGMs: where an organisation is currently required to hold an AGM on a date falling between 26 March 2020 and 30 September 2020 it will be able to hold that AGM validly at any point in that extended period. Virtual meetings: where a members’ meeting is held during the above period the following flexibilities, even if their governing document does not currently permit them:

• the meeting does not need to be held in a particular place
• the meeting may be held and any votes may be permitted to be cast by

electronic means or any other means

• the meeting may be held without any number of those participating in

the meeting being together at the same place

• a member does not have a right to attend the meeting in person,

participate in the meeting other than by voting, or to vote by any particular means

Unincorporated and AGMs

Charity Commission

www.gov.uk/guidance/coronavirus-covid-19-guidance-for-the-charity-sector#agms-and-

• ther-meetings-postponing-or-cancelling-meetings

AGMs for unincorporated charities are not covered by the new law but an alternative for trustees of these charities is to change the requirements in the governing document about their timing. If neither of the above flexibilities applies, trustees of any type of charity can decide it is necessary to cancel or postpone any meeting, but you should record this decision to demonstrate good governance of your charity.

• Supporting Charities
• Supporting Employees
• Supporting Local and UK Businesses
• Being Sustainable

https://csr-online.org/join-bctc-csr-scheme/

What does CSR mean to us?

• 1. How many days per year do you and your staff spend

doing voluntary work? enter a number

• 2. How much have you and your business donated to

Charities and Social Enterprises in the last 12 months?

• 3. How much have your staff donated through payroll giving

in the last 12 months?

• 4. Which Charities has your business supported
• 5. What skills/services can your business offer charities? eg

business planning, web assistance, finance, bid writing etc What do we Ask Businesses about Charities

Charities Forum

• Free Event held quarterly – organised with CAN to help charities work

together and improve skills

• Once a year we have a Business and Charity Event – the aim is to match

Businesses with a Charity or Charities they can support – in 2019 this event was held in June, over 100 businesses and charities attended – approx. 40 businesses and 60 charities attended

• Business attendees included JP Morgan, B&P College, Bid Writers,

Accountants, Solicitors, Clothing companies

• CAN carry out impact assessments for 12 months after the event

https://www.eventbrite.co.uk/e/bctc-forum-trustees- recruitment-and-retention-tickets-74082868855

Would you like to join our Board of Trustees? Dorset Advocacy Dorset Advocacy is a charitable organisation based at Poundbury in Dorchester. We cover the geographical area of Bournemouth, Poole and Dorset. We work with people with physical disabilities, who have ill health or learning disabilities and people with dementia and autism………. We are looking for 2 people who are willing to apply their professional skills to support

• ur organisation. One of these roles requires someone with a strategic finance or

accountancy background, to help us to appraise the viability of project proposals, diversify income streams, assist with our pricing models and help us plan for our long- term sustainability.

Tell us what you need – post on our blog

The Social Value Act is driving change

“An act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts; and for connected purposes.”

The Social Value Act now requires all public service organisations to ‘consider’ social value when awarding services contracts. What Councils are saying: How can we engage business in supporting us to deliver our needs? How do we compare different tender submissions? How do we manage contracts and the delivery of Social Value after award? What Businesses are saying….. We need a simple and quick tool to measure social value We need consistency but want to be able to innovate We want to be valued for everything that we are doing, locally and nationally Implementation of the Act saves councils money and adds value… ’The first thing to note about the Act is that, where it has been taken up, it has had a positive effect, encouraging a more holistic approach to commissioning which seeks to achieve an optimal combination of quality and best value’’

• Lord Young, February 2015

‘’Organisations wishing to win work with the public sector must now be able to report their social value’’

7 The Social Value Portal - Overview

Increase customer and brand loyalty as a result of greater community awareness Improve productivity by having a happy and engaged work force with high morale Improve the planet by becoming more sustainable

CSR helps Businesses

We are volunteers, no directors of BCTC are paid Charities can join for £37.50 per year and have the maximum access to our members, newsletters, mailshots, blogs, website

Thank you for listening … For more help drop me an e mail steve@bicknells.net or telephone 01202 025252