SANDY ADIRONDACK
Legal and governance training and consultancy
for the voluntary sector
OTHER CHAPTERS
I. THE ORGANISATION

Ch.1: Setting up an organisation
Ch.2: Unincorporated organisations
Ch.3: Incorporated organisations
Ch.4: Charitable status, charity law & regulation
Ch.5: The organisation's objects
Ch.6: The organisation's name
Ch.7: The governing document
Ch.8: Registering as a charity
Ch.9: Branches, subsidiaries & group structures
Ch.10: Changing legal form
Ch.11: Collaborative working, partnerships and mergers
II. GOVERNANCE
Ch.12: Members of the organisation
Ch.13: Members of the governing body
Ch.14: Officers, committees & sub-committees
Ch.15: Duties & powers of the governing body
Ch.16: Restrictions on payments & benefits
Ch.17: The registered office & other premises
Ch.18: Communication & paperwork
Ch.19: Meetings, resolutions & decision making
Ch.20: Assets & agency
Ch.21: Contracts & contract law
Ch.22: Risk & liability
Ch.23: Insurance
Ch.24: Financial difficulties & winding up
III. EMPLOYEES, WORKERS, VOLUNTEERS & OTHER STAFF
Ch.25: Employees & other workers
Ch.26: Rights, duties & the contract of employment
Ch.27: Model contract of employment
Ch.28: Equal opportunities in employment
Ch.29: Taking on new employees
Ch.30: Pay & pensions
Ch.31: Working time, time off & leave
Ch.32: Rights of parents & carers
Ch.33: Disciplinary matters, grievances & whistleblowing
Ch.34: Termination of employment
Ch.35: Redundancy
Ch.36: Employer-employee relations
Ch.37: Employment claims & settlement
Ch.38: Self employed & other contractors
Ch.39: Volunteers
IV. SERVICES & ACTIVITIES
Ch.40: Health & safety
Ch.41: Safeguarding children & vulnerable adults
Ch.42: Equal opportunities: goods, services & facilities
Ch.43: Data protection & use of information
Ch.44: Intellectual property
Ch.45: Publications, publicity & the internet
Ch.46: Campaigning & political activities
Ch.47: Public events, entertainment & licensing
V. FUNDING & FUNDRAISING
Ch.48: Funding & fundraising: General rules
Ch.49: Fundraising activities
Ch.50: Tax-effective giving
Ch.51: Trading & social enterprise
Ch.52: Contracts & service agreements
VI. FINANCE
Ch.54: Annual accounts, reports & returns
Ch.55: Auditors & independent examiners
Ch.56: Corporation tax, income tax & capital gains tax
Ch.57: Value added tax
Ch.58: Investment & reserves
Ch.59: Borrowing
VII. PROPERTY
Ch.60: Land ownership & tenure
Ch.61: Acquiring & disposing of property
Ch.62: Business leases
Ch.63: Property management & the environment
VIII. BACKGROUND TO THE LAW
Ch.64: How the law works
Ch.65: Dispute resolution & litigation
UPDATED INFORMATION FOR CHAPTER 53:
THE RUSSELL-COOKE
VOLUNTARY SECTOR LEGAL HANDBOOK

This page contains information that has appeared on Sandy Adirondack's legal update website for voluntary organisations at www.sandy-a.co.uk/legal.htm. For current updates, including potential changes that are in the pipeline, see the legal update website.

These websites for each chapter update the 3rd edition of The Russell-Cooke Voluntary Sector Legal Handbook by James Sinclair Taylor and the Charity Team at Russell-Cooke Solicitors, edited by Sandy Adirondack (Directory of Social Change, 2009). The websites are not intended as a comprehensive update and should not be treated as such.

To order a copy of The Russell-Cooke Voluntary Sector Legal Handbook, print out the order form at www.sandy-a.co.uk/bookserv.htm or send an email order by clicking . It costs £60 for voluntary organisations or £90 for others, plus 10% p&p.

To avoid spamming, an email address is not given on screen. If you can't see the word 'here' or have trouble sending an email by clicking on it, the address is bookservice at sandy-a.co.uk, with the spaces and 'at' replaced by the @ symbol.

The information here covers the law applicable to England and Wales. It may not apply in Northern Ireland and/or Scotland. These news items are not a full or definitive statement of the law and are not intended as a substitute for professional legal advice. No responsibility for loss occasioned as a result of any person acting or refraining from acting can be taken by the author.


Chapter 53
FINANCIAL PROCEDURES AND SECURITY


The items below formerly appeared on the legal update website for voluntary organisations and are archived here. The content may be out of date and links may not work. For current updates to the chapter, see the legal update website for voluntary organisations at www.sandy-a.co.uk/finance.htm.


FINANCIAL PROCEDURES AND ACCOUNTING RESOURCES

Added 1/4/12. This information updates chapters 53 & 54 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
Most basic guidance for businesses on financial procedures and record keeping is also relevant for charities and voluntary organisations, but is likely to need to be adapted to ensure the systems can comply with charity requirements, such as tracking restricted income and related expenditure, and separating taxable and non-taxable income. New or recently updated guidance which may be useful includes:

  • Keeping records for business: What you need to know. A basic guide with a list of where to get more information.
    www.hmrc.gov.uk/factsheet/record-keeping.pdf

  • A general guide to keeping records for your tax return. Detailed guidance on record keeping covering the records you may have to keep, common problems and examples.
    www.hmrc.gov.uk/sa/rk-bk1.pdf

  • Set up a basic record keeping system. Examples of spreadsheets and information and setting up a record keeping system.
    www.businesslinks.gov.uk/recordkeeping

  • Find out what records you should be keeping. The records you need to keep, and how to assess how well you are keeping them.
    www.businesslink.gov.uk/recordkeepingcheck

  • Internal financial controls for charities (CC8). The main points of financial management, planning and control in the context of charity law and good practice, including electronic banking and other recent changes, and how to safeguard against fraud.
    www.charitycommission.gov.uk/Publications/cc8.aspx

  • Understanding reports on charity financial statements. First in a series of short guides from the CIPFA (Chartered Institute of Public Finance and Accountancy) charities panel, intended to help accountants and non-accountants understand charity accounting and reporting.
    tinyurl.com/3yu4hlj

  • Updated guidance and resources from Mango (Management Accounting for Non-Governmental Organisations), to help charities delivering emergency aid to manage their finance.
    www.mango.org.uk

HODGSON RECOMMENDATIONS ON EX GRATIA PAYMENTS BY CHARITIES

Added 21/8/12. This information updates s.53.3 in The Russell-Cooke Voluntary Sector Legal Handbook (VSLH3).
An ex gratia payment is one which an organisation feels morally obliged to make even though it has no power or contractual obligation to do so and the payment cannot be justified as being in the interest of the organisation. An ex gratia payment might be made, for example, when an organisation receives, through an oversight or technicality, a legacy intended for another beneficiary. A charity may make an ex gratia payment only with an order from the Charity Commission, court or attorney general.

In his review of the Charities Act presented to Parliament on 16 July 2012, Lord Hodgson made the following recommendations in relation to ex gratia payments, and the government commented on some of them in its interim response on 3 November 2013. The government's full response will include consideration of the Public Administration Select Committee's report on its inquiry into the Charities Act 2006 and the regulation of charities, which was published on 6 June 2013.

  • Trustees should be given a power to delegate to the chief executive the consideration of making ex gratia payments and the making of the approach to the Commission for permission. [Appendix A recommendation 5]

  • Trustees should be given a power to make small ex gratia payments themselves, below a certain threshold [not specified]. [Appendix A recommendation 5]
Lord Hodgson's report and recommendations can be accessed on the Cabinet Office website via tinyurl.com/c2azftb. The government's interim response is on the Cabinet Office website via tinyurl.com/poqqqr6.



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for the voluntary sector

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