annual charity seminar 2016

WELCOME TO THE THOMAS WESTCOTT

ANNUAL CHARITY SEMINAR 2016

Axminster · Barnstaple · Bideford · Bridgwater · Burnham on Sea · Crediton · Exeter · Holsworthy · Honiton · Ilfracombe · Langport · Okehampton · Plymouth · Seaton · Somerton · Tiverton · Torquay · Weston super Mare

Lyme Regis MuseumThe Mary Anning Wing

Lyme Regis MuseumLyme Regis Museum was built in 1902 on the site of the home of Mary Anning, the world’s first great fossil hunter and early scientist.

The museum’s collections are varied and cover:

• Lyme’s important role in the birth of the science of palaeontology

• Lyme’s literary connections – John Fowles, Jane Austen and latterly, Tracy Chevalier

• The birthplace of Thomas Coram – founder of England’s first charity, ‘The Foundlings Hospital

• George Somers and the founding of the Bermuda – and much else!

What we are and what we doOur museum has been in operation since 1921 and became a charity in 1993.

• We collect, display and conserve Lyme’s history

• We make the collections and their stories accessible to our visitors in the museum and on-line

• We run a wide range of educational activities, including fossil walks and a wide range of education sessions for schools, universities and adults

• We offer many opportunities for people to enhance their lives through volunteering at our museum

The Mary Anning Wing ProgrammeWe have identified that for our museum to thrive in an age where local government support is likely to significantly decline it needs to become self-sufficient.The Mary Anning Wing will provide the services we lack – a new class/function room, bigger shop, lift loos and a redesigned fossil gallery.The Wing’s construction is well over £1,000,000 – a modern building of zinc and glass, complementing the 1902 striking 1902 structure.

The New Geology Gallery: £150,000 investment in telling Lyme’s key story

Now….June 2017

Mary Anning’s great finds: Ichthyosaur a Jurassic marine reptile

2. Plesiosaur: a long-necked Jurassic marine reptile

Dimorphodon: the first flying reptile discovered outside of Germany

Programme CostsThe Mary Anning Wing Programme, with all its separate facets costs in the region of £1,700,000.

Our income is approximately £170,000.

We have therefore embarked on a programme costing 10 times more than our annual income.

Would any business ever embark on a project carrying this level of exposure?

Heritage charities very often do this.

The Heritage Lottery FundOur museum has received £798,000 from HLF South West.

Applying to HLF is a long and challenging process – but it has the merit of instilling discipline.

Many grant giving charities regard HLF as the ‘gate-keeper’ and will seriously consider your application if you have HLF’s support.

HLFs processes ensure that you get many technical matters right – but it does not interfere with your duties as trustees – governance…

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjo0tyh8pDMAhUJWBQKHUlWAyQQjRwIBw&url=http://www.ioda.com/clients.html&psig=AFQjCNECmqobW-l77Qj5o5Elm0njqxxHHQ&ust=1460818269000537

What Governance Processes have we put in place?• The Board of Trustees:• 1. Quarterly Reports to Trustees from director that are open and

honest – and identify mistakes.• 2. Ensuring Trustees understand their responsibilities and are able to

make informed discussions.• 3. Ensuring the skills of appropriate trustees are used.• 4. Making sure the board of trustees has a diverse range of skills –

and recruiting as appropriate.• 5. Ensuring Chairman and director can and do work effectively

together.

More Governance…

• Regular assessment of risk – for both the Mary Anning Wing Programme and our operations.

• Creation of our Programme Advisory Board – a mix of trustees and external experts meeting monthly and monitoring processes.

• Careful monitoring of cashflow – using expertise of Thomas Westcott.• Regular updates of information to volunteers and staff – it’s the

human relationships that are the most challenging.• Keeping funders and stake-holders informed.• Take expert advice - even if this means paying for it!

What have Thomas Westcott ever done for us? • Understand how charities operate – and appreciate what our

strengths and weaknesses are• Manage the Mary Anning Wing cashflow – it’s essential that we get

this right – and it is very reassuring to have an expert make precise amendments

• Most importantly, negotiated a significant VAT discount with HMRC for the Mary Anning Wing Programme. The reduction of VAT from 20% to 2% has reduced the programme cost by over £200,000. Without this, our programme would not have progressed.

Any Questions?

Volunteers, Trustees, local school children and staff celebrate the award of £798,000 from the Heritage Lottery Fund!

Thank You

CHARITIES ACT 2011

K E I TH C

L A Y


By Your Side. On Your Sidewww.thomaswestcott.co.uk

CHARITIES ACT 2011


UNINCORPORATED CHARITIES

Gross income is £25,000 or less

• But greater than £10,000• But less than £10,000

Gross income is greater than £25,000 and up to £250,000

Gross income is greater than £250,000 up to £1M and total assets do not exceed £3.26M

Gross income is greater than £1M or gross income is greater than £250,000 and gross assets exceed £3.26M


CHARITABLE COMPANIES


THE CONSTITUTION OF YOUR CHARITY,IT’S GOVERNING DOCUMENT.


THE KIDS COMPANY


PUBLIC TRUST

• Why has it been knocked?• What can you as Trustees do about it?


THE THOMAS WESTCOTT CHARITY NEWSLETTER

• Enrol today


FUNDRAISING

• Be Careful!


MAKING GRANTS FROM YOUR CHARITY

Be careful

Know the guidance!


WHY DO I AS A TRUSTEE NEED TO BE AWARE OF THE REGULATORY FRAMEWORK?


THANK YOU

“The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or

refraining from acting, as a result of this material.”

SORP TECHNICAL UPDATE

S H O N A GO D E F R O Y



FOR ONE YEAR ONLY – SORP 2015 • Periods beginning 1 January 2015


FRSSE SORP HAS GONE!


SORP (FRS 102)

• Periods beginning 1 January 2016• Can adopt early


WHAT ARE THE KEY CHANGES?

• New definition of a larger charity• Disclosure amendments• Related party definition amended• Differences in accounting


DEFINITION OF A LARGER CHARITY

• Income over £500k


DISCLOSURE AMENDMENTS

• SOFA identical except the treatment of gains and losses on investments

• Balance sheet identical

• Trustees report is similar

• Cash flow needed for larger charities

• Revised disclosure of exceptional items


RELATED PARTY DEFINTITION Related parties include a charity’s trustees and their close family members and those entities which they control or in which they have a significant interest. Entities related to a charity include any subsidiary, joint venture or associate of the charity.


RELATED PARTY DISCLOSURE:

The significant changes are:

• The disclosures required for trustees equally apply to de-facto trustees

• Clarification that trustee expenses include costs reimbursed and costs paid direct to third parties

• Whilst the details of individual donations without conditions made by trustees need not be disclosed, the total amount donated must be disclosed




• Unless immaterial, the total amount of expenses waived by trustees must be disclosed

• Contributions by a charity to a pension fund for the benefit of employees must now be disclosed

• Details of redundancy and termination payments for staff must be disclosed




• All charities must disclose if the member of staff is paid £60,000 or more in bands of £10,000 from £60,000 upwards

• The total paid to key management personnel must be disclosed


DIFFERENCES IN ACCOUNTING

• Holiday day accrual required

• Legacies accounted for when probable

• Discount rates applied to long-term liabilities

• Goodwill amortisation default period is 10 years

• Where practicable unlisted investments to be valued at fair value


THE FUTURE?

A NEW SORP IS COMING FOR 2019!


THANK YOU

Q & A “The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or


CONVERSION TO A CIO

S T E V E CR E S S W E L L



LIKELY LEGAL ENTITIES

• Trust

• Unincorporated Association

• Company limited by Guarantee

• Charitable Incorporated Association


• All need registration with the Charity Commission

• CIO is registered as it is formed


TRUSTS and UNINCORPORATED ASSOCIATIONS

• Normally have a Governing Document

• Rules and Charitable Objects established

• Powers of and Appointment of Trustees

• Permitted Activities of Charity


UNINCORPORATED CHARITY THEN LIKELY

• No limit on personal liability of trustees

• Charity cannot enter into contracts or investments in own name

• Two or more trustees are named or

• Use of Charities Land holding service required to own land

• Official Custodian of Charities


COMPANY LIMITED BY GUARANTEE

• Registered at Companies House

• No shareholders

• Non Distribution clauses for both income and capital

• Charitable purposes

• Limited liability of members


WHY HAVE A CHARITABLE INCORPORATED ASSOCIATION (CIO)?

• Only registration is with Charity Commission

• Limited liability protection for Trustees

• Legal entity in own right


WHY HAVE A CIO? (continued)

• Organisation can employ paid staff

• It can enter into contracts in its own name

• It can own freehold or leasehold land and property


CONVERSION TO CIO

• Unincorporated charity can convert now

• Incorporated – waiting for response to feedback request – nothing yet

• Feedback request closed 10 June 2016


TO CONVERT TO A CIO

• Choose Structure

• Write the Governing document


CHOICE OF CIO STRUCTURE

• There are two types of CIO available

• Association

• Foundation


ASSOCIATION CIO

• Wider membership

• There are voting members other than trustees

• The members elect a committee (trustees)

• The committee ‘runs’ the charity

• All members vote on major decisions


FOUNDATION CIO

• The only members are the trustees

• The charity is run by the trustees

• Probably originates from a trust deed or will

• There are no other voting members


WRITE THE GOVERNING DOCUMENT

• Guidance on how to write the Charitable Purpose

• An opportunity to review the objects

• Bring the constitution up to date

• Consider the area of operations

• Explain changes to CC


OTHER POINTS

• Does your existing charity allow the transfer of assets

• Is there a dissolution clause

• Do you have permanent endowments

• You may require Charity Commission permission

• Make sure your existing filing is up to date

• Have a good track record


APPLY ONLINE

• Beware that questions appear depending on answers provided!

• Link your application to your existing charity

• Who

• What

• Where


TRUSTEE DETAILS

• Trustee declarations

• Eligibility to Act

• Understand your charity

• Each trustee must sign a declaration


TRUSTEES INFORMATION

• Name and former names

• Address

• Date of birth

• Email and contact numbers

• Other trusteeships


UPLOAD TO CHARITY COMMISSION

• Last accounts of current charity

• Provisional figures / budget for next year

• Transactions with trustees and permissions

• Explain the assets to be transferred

• Permanent Endowment Conditions


• And WAIT!!

• But CC may come back with questions


• Transfer the assets and liabilities to the new CIO

• There will be a new charity number – ensure that documentation is updated

• Some banks allow the same bank account to be used

• Follow rules re Permanent Endowments


NEW REGISTRATIONS:

• PAYE

• Gift Aid

• VAT

• General stationery


• Close previous charity?

• Legacies with specific charity number?

• Linked register at Charity Commission

• Take legal advice


You should now be a CIO !!


A COUPLE OF UPDATES TO BE AWARE OF:

• Auto Enrolment

• Fraud Week and protection from it

• Apprenticeship levy


THANK YOU



COMMON PROBLEMS OF

GOVERNANCE

S T U A R T CA R R I N

G T O N



LIFE GOES WRONG


CHARITIES GO WRONG


• OVERLY DOMINANT CHIEF EXECUTIVE

• LACK OF FINANCIAL CONTROL

• STAGNANT OR WEAK BOARD


• FRIENDS AND FAMILY

• ARGUMENTATIVE / ABRASIVE / CHALLENGING / DESTRUCTIVE

• MEETINGS


BEST INTERESTS OF THE CHARITY?


• CONFRONT THEM

• SEEK ADVICE

• RESIGN


• RANGE OF SKILLS

• HOLD EXECUTIVE TO ACCOUNT

• FURTHER THE AIMS OF THE CHARITY


• APPOINTMENT POLICY

• DEVELOPMENT POLICY

• RETIREMENT POLICY

• CHOCOLATE TEAPOT (ACCOUNTANT)


• ASK QUESTIONS

• KEEP ASKING THEM

• EXTERNAL ADVISORS


THANK YOU



annual charity seminar 2016

Government & Nonprofit