Updates on Charity Law, Finance and Investment
This was an opportunity to find out how up to date you are with current issues in charity accounting, tax, law and investment. There are constant changes in these areas that can have serious implications for your charitable trust or foundation. It pays to know exactly where you stand.
Charitable Trusts West Midlands, in conjunction with Anthony Collins solicitors, Sayer Vincent charity accountants and Brewin Dolphin charity investment managers held a seminar to provide updates on some of the key recent changes and enable those that attended to check if you are compliant with requirements.
Legal Aspects- Shivaji Shiva from Anthony Collins covered the following topics:
- The new governance codes – can they help identify well governed applicants?
- Diversity and collaboration – recent developments
NPC have also raised the need for the Third Sector to encourage greater diversity at Board level. At a NPC roundtable disussion it concluded that the private sector is further ahead than the third sector at establishing what a difference board diversity can actually make to organisations.
Find out more about NPC’s State of the Sector programme.
NPC recently published Above and beyond in trusteeship: What good governance looks like, which explores how boards can do more for their charities. It touches on issues of board make up and diversity.
- Data protection and the GDPR – what do you need to know?
New General Data Protection Regulation have been introduced in 2016, which replaces UK’s Data Protection Act 1998 (DPA). Its aim is to harmonise DP law throughout Europe, which come into force in UK on 25th May 2018. The new Regulation introduces significant changes to UK (and EU) Data Protection regime – including significantly higher fines. To read more click here.
A copy of Shivaji’s presentation slides are available here.
Shivaji is Charity Lawyer at Anthony Collins Solicitors and advises staff and board members of charities, social enterprises and other not-for-profit organisations on the creation of such organisations, their dissolution and most of the issues they encounter during their lifespan.
He specialises in complex governance advice, ‘charity proceedings’ – disputes relating to the internatl administration of charities, charity mergers and restructuring and support to federated charities, sport and leisure charities and professional institutes.
Accounting – Fleur Holden from Sayer Vincent covered the following topics:
- The requirements of the common reporting standard
ACF inconjuction with the Charity Finance Group have produced useful information and resources on the common reporting standard and can be found here.
- Funding of non-charities in the light of revised Charity Commission guidance
The Charity Commission has published guidance for trustees of charities wanting to make grants to non-charitable organisations. The guidance brings together existing commission guidance that sets out the key principles that trustees must follow when making decisions about grant funding non-charitable organisations. It complements the commission’s existing guidance for charities on working with other charities.
- Requirements of the new audit report and challenges in reporting on social investment.
Statutory power for charities to make investments came into force on 31 July 2016. Charities still need to check governing document. The interim guidance (dated August 2016) within CC14 is due for review in 2017. The Act imposes new duties on trustees when considering making social investments.
How might a trust get involved in making social investments as well as giving grants. To read more click here.
A copy of Fleur’s presentation can be found here.
Fleur has a portfolio of audit clients and specialises in social care and international charities. She provides more support to the firm’s growing client base in the Midlands. She is a member of the firm’s technical group, keeping staff and clients up-to-date with current auditing and accounting issues.
Fleur is a qualified chartered accountant and Fellow of the Institute of Chartered Accountants in England and Wales. She is also a trustee and treasurer of the Burntwood Pathway Project, a local project providing support and refuge to victims of domestic abuse, and treasurer of the junior section of Lichfield Cricket Club.
Investment: Ian and Roger from Brewin Dolphin covered the following topics:
- Collaborative procurement – implications for funders in joining together to manage their investments to obtain better terms and provide better oversight
Ian considered the pros and cons of collaborative procurement and in particular ethical investment. Weighing up the pros and concs may seem daunting for many charities, but in a world where the transparency and reputation of charities is so key, it’s important trustees take the time to consider ethical investment. As charities face increased scrutiny, investment choices, just like any other charitable activity, need to reflect each charity’s core values and aims. Charity Commission CC14 guidance on Charities and Investment Matters can be found here.
- Engagement – can a united voice really change Board behaviour?
- Real Income – the challenges of providing a growing income in a low interest rate/rising inflation environment.
A copy of Ian and Roger’s presentation can be found here.
Ian joined Brewin Dolphin in 2010 having begun his career with a small boutique investment manager some 10 years previously. He manages assets for a wide range of charities in the Midlands area, is a Chartered Fellow of the Chartered Institute for Securities and Investment (CISI) and also sits on the CISI Investment Management Panel writing and reviewing Level 3 and 4 exam questions and syllabi. Ian also holds the Society of Trust & Estate Practitioners Certificate for Financial Services, the Governance Certificate from the Association of Corporate Governance Practitioners and is a member of the investment sub-committee of Birmingham Children’s Hospital Charities.
Roger has 24 years experience working in investment management. He joined Brewin Dolphin Birmingham in 1997 and in 2005 was promoted to Divisional Director. He is a Chartered Fellow of the Chartered Institute for Securities & Investment and manages mainly discretionary portfolios for private clients, trusts and SIPPS. Roger has extensive experience of investment and relationship management.