Transcript Slide 1
Advice for charity trustees Frances McCandless Chief Executive Topics Role of the Charity Commission Registration – prepare, prepare, prepare Importance of good governance Lessons learned from concerns about charities: Conflicts of interest Private benefit Financial control and transparency Role of the Commission Role of the Commission Monitor compliance by charities with their legal obligations Identify and investigate misconduct or mismanagement Register of charities Provide consents for charities to make changes to keep their charity effective Provide guidance on matters relating to charity law and trustee duties Registration lessons learned Registration advice • All organisations that are or could be charitable must apply to register when called forward • Charity trustees are responsible for ensuring the organisation applies to register and adheres to charity law • Use the Commission’s free guidance to prepare in advance attend a registration workshop use the purposes and public benefit toolkit review the screenshots of the online system and online tutorial Registration advice Have the following information ready: Up to date governing document Trustee declaration Details of charity trustees: DOB, contact, previous names Bank details Most recent annual report and financial accounts Must – Public benefit requirement statutory guidance Should - Registering your charity in Northern Ireland guidance and the relevant charitable purpose guidance Registration lessons learned Quality of applications Changes to governing document Importance of governing document Fear factor Learning from the register Research published March 2015 analyses first 786 charities registered Findings: Annual income ranges from less than £100 to almost £200 million Top 20% of charities by income account for more than 80% of the total income of the sector Just over one quarter of charities have an income of £10,000 or less per annum 24% of charities are located in Belfast (population 16%) Trustees aged 17 to 96 Good governance Good governance • At the heart of an effective charity is good governance • Over 400 concerns about charities received by the Commission many of the concerns relate to minor governance issues • Some concerns could have been avoided, or resolved internally, by the charity ensuring it is open, transparent and accountable • Running your charity guidance • The Code of Good Governance What does good governance look like? A well-governed charity will: recognise and meet all of its legal requirements meet standards of best practice know what its purposes are and work to achieve those purposes make good, timely decisions explain where, why and how money has been spent provide strong leadership treat people fairly and equally Concerns about charities: lessons learned Conflicts of interest Conflicts of interest should be managed in such a way as to promote accountability and transparency within the charity. Declare the conflict at the earliest opportunity Decide on next steps to take, dependent on the conflict itself Record the process in meeting minutes to ensure transparency Keep a register of interests Private benefit • Private benefit occurs where an individual or an organisation who is not an intended beneficiary receives a benefit • Such benefits may be acceptable if they are incidental • Incidental benefits contribute towards achieving the charity’s purposes and/or are a necessary result or by-product of carrying out the purposes • Incidental benefits should normally be significantly less valuable than the main charitable benefit provided to the beneficiaries • Currently reviewing Purposes and public benefit toolkit to add further guidance on private benefit Financial controls and transparency • Strong financial controls are needed to ensure the charity is meeting its legal duties, is safeguarding assets and using funds appropriately • Following the correct controls is a step forward in running a charity which is accountable to its stakeholders • Annual reporting is a legal requirement for all registered charities • Transparency is also key - ensure your stakeholders are kept informed and updated For more information visit our website www.charitycommissionni.org.uk