OTHER CHAPTERS
I. SETTING UP AN ORGANISATION
Ch.1: Trusts & unincorporated associations
Ch.2: Companies & other incorporated structures
Ch.3: Charitable status, charity law & regulation
Ch.4: The objects clause
Ch.5: The governing document
Ch.6: Setting up an organisation
Ch.7: Registering as a charity
Ch.8: The organisation's name
Ch.9: Branches, subsidiaries, partnerships & mergers
II. GOVERNANCE & MEMBERSHIP
Ch.10: Members of the organisation
Ch.11: Members of the governing body
Ch.12: Officers, committees & sub-committees
Ch.13: Duties & powers of the governing body
Ch.14: Restrictions on expenses, remuneration & benefits
III. RUNNING AN ORGANISATION
Ch.15: The registered office and other premises
Ch.16: Paperwork requirements
Ch.17: Meetings & decision making
Ch.18: Legal agreements
Ch.19: Organisational & personal liability
Ch.20: Insurance
Ch.21: Financial difficulties & winding up
IV. EMPLOYEES, WORKERS, VOLUNTEERS & OTHER STAFF
Ch.22: Employees and other workers
Ch.23: Rights, duties & the contract of employment
Ch.24: Model contract of employment
Ch.25: Equal opportunities in employment
Ch.26: Taking on new employees
Ch.27: Pay & pensions
Ch.28: Working time & leave
Ch.29: Disciplinary matters, grievances & whistleblowing
Ch.30: Termination of employment
Ch.31: Redundancy
Ch.32: Employer-employee relations
Ch.33: Employment claims & settlement
Ch.34: Self-employed workers & other contractors
Ch.35: Volunteers
V. SERVICES & ACTIVITIES
Ch.36: Health & safety
Ch.37: Equal opportunities in provision of goods & services
Ch.38: Confidentiality, privacy, data protection & freedom of information
Ch.39: Intellectual property
Ch.40: Publications & publicity
Ch.41: Campaigning & political activities
Ch.42: Public gatherings & entertainment
Ch.43: Food & drink
VI. FUNDING & FUNDRAISING
Ch.44: Funding & fundraising: General rules
Ch.45: Fundraising activities
Ch.46: Tax-effective giving
Ch.47: Trading companies
Ch.48: Contracts & service agreements
VII. FINANCE
Ch.49: Financial procedures & records
Ch.50: Annual accounts, reports & returns
Ch.51: Auditors
Ch.52: Corporation tax, income tax & capital gains tax
Ch.53: Value added tax
Ch.54: Investment & reserves
Ch.55: Borrowing
VIII. PROPERTY
Ch.56: Land ownership & tenure
Ch.58: Business leases
Ch.59: Property management & the environment
IX. BACKGROUND TO THE LAW
Ch.60: How the law works
Ch.61: Dispute resolution & litigation
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UPDATED INFORMATION FOR CHAPTER 57:
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 2nd edition of The Voluntary Sector Legal Handbook by Sandy Adirondack and James Sinclair Taylor (Directory of Social Change, 2001). The websites are not intended as a comprehensive update and should not be treated as such.
To order a copy of The 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 £50 for voluntary organisations or £80 for others, plus 10% p&p. We expect the third edition to be published in 2007.
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 57
ACQUIRING AND DISPOSING OF PROPERTY
NEW PROPERTY ADVICE SERVICES
Added 19/7/06. This information adds to chapters 56-59 in The Voluntary Sector Legal Handbook 2nd edition.
Two new services are offering advice on property issues to charities and other voluntary organisations. The website of the Ethical Property Foundation, charitable arm of the Ethical Property Company, provides information about finding an office, negotiating a lease, moving in, managing and "greening" the office, and moving out. It also runs a network of solicitors, surveyors and space planners who provide free or affordable advice to London-based organisations. Their website is at www.ethicalproperty.org.uk/advice.php.
Property Advice for London, run by CIC London (the Construction Industry Council) and RICS (the Royal Institution of Chartered Surveyors) matches surveyors, architects, engineers and other property-related consultants with charities. Topics covered include refurbishments, leasing, relocation, service charges and much more. Further information is at www.cic.org.uk/london/RegistrationForm.pdf.
STAMP DUTY LAND TAX
AND DISADVANTAGED AREAS RELIEF
Updated 29/12/03. This information updates s.57.10.1 in The Voluntary Sector Legal Handbook 2nd edition.
Charities do not in general pay stamp duty, but where they do have to and for non-charities, stamp duty land tax replaces stamp duty for land and buildings transactions completed on or after 1 December 2003. SDLT may have a particularly significant impact on some short-term leases, which could be taxed as if they lasted 12 years. Further information is available from your organisation's financial advisor and from the Inland Revenue at www.hmrc.gov.uk/so/index.htm.
Under disadvantaged areas relief, there is no stamp duty or stamp duty land tax on the following transactions in specified disadvantaged areas: transfers or conveyances of non-residential properties after 10 April 2003, leases of commercial properties, and transfers, conveyances or leases of residential properties up to £150,000. Further information, including a postcode search tool to identify designated areas, is at www.hmrc.gov.uk/so/dis_relief_menu.htm.
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Charities Act 2006
RESTRICTIONS ON CHARITY MORTGAGES
Added 18/3/07. This information updates s.57.11 in The Voluntary Sector Legal Handbook 2nd edition.
From 27 February 2007, the rules relating to charity mortgages are extended to cover mortgages relating to grants as well as those relating to loans. But at the same time the requirements are eased. Provided there are no constitutional or other restrictions on the charity's power to mortgage its property, and provided the trustees comply with the statutory requirements (for example to obtain proper advice), the trustees are unlikely to be required to get consent for the mortgage from the Charity Commission or court.
This provision is in s.27 of the Charities Act 2006, which amends s.38 in the Charities Act 1993. For links to the Acts and guidance, see The Charities Act 2006.
Charities Act 2006
CHARITY MERGERS
Updated 25/3/08. This information updates ss.9.9, 57.12 & 57.13 in The Voluntary Sector Legal Handbook 2nd edition.
From 28 November 2007 two types of "charity merger" are defined under the Charities Act: a merger where one charity (or more) transfers all its property to another charity, and the transferring charity/ies cease to exist; and a merger where two or more charities create a new charity and transfer all their property to it, and the transferring charities cease to exist. An unincorporated charity becoming incorporated falls into the first category.
The Charity Commission has established a register of such mergers. The process for transferring property in such a merger has been simplified, and new provisions ensure that gifts such as legacies which fall due after a charity has merged and ceased to exist, or standing orders where the donor cannot be located to change the details on their standing order, will be treated as if they had been made to the the existing charity.
Past mergers can be entered in the register is they meet the statutory criteria. This will enable "shell" charities which have been retained only to receive legacies and donations to be wound up, knowing that the funds can be paid to the new charity.
These provisions are in s.44 of the Charities Act 2006, which inserts new ss.75C-75F to the Charities Act 1993. For links to the Acts and guidance, see The Charities Act 2006.
The new provisions do not apply to other sorts of merger, for example when part (but not all) of one charity merges with another, or when one charity becomes a subsidiary of another.
Charities Act 2006
CONNECTED PERSONS
FOR CHARITY LAND TRANSACTIONS
Added 18/3/07. This information updates s.57.12.1 in The Voluntary Sector Legal Handbook 2nd edition.
From 27 February 2007, the definition of connected person for the purpose of disposing of charity land is extended to include a business partner of a trustee or person connected with a trustee, a civil partner of a trustee, and a person living with a trustee as if they were civil partners.
This provision is in sch.8 para.178 of the Charities Act 2006, which amends sch.5 in the Charities Act 1993. For links to the Acts and guidance, see The Charities Act 2006.
Charities Act 2006
POWER TO SPEND PERMANENT ENDOWMENT
Updated 22/3/08. This information updates chapter 54 and s.57.13 in The Voluntary Sector Legal Handbook 2nd edition.
From 18 March 2008 the rules allowing the expenditure of capital (also known as permanent endowment) have been relaxed and extended to all unincorporated charities, not just those with annual income under £1000, where the income from permanent endowment is too small to be effectively spent. Similar rules, but with more safeguards, are in place for larger endowment funds with a single purpose or given by a single individual or institution.
This provision is in s.43 of the Charities Act 2006, which replaces s.75 and adds new ss.75A-75B to the Charities Act 1993. For links to the Acts and guidance, see The Charities Act 2006.
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