Transcript Charities and Trustee Investment (Scotland) Act 2005

Voluntary Action Scotland
Conference 2012
Lisa McGhee
Acting Development Manager
Outline of session
A brief reflection on:
• OSCR Online
• SCIOs
Some discussion around:
• Our engagement with the (old) CVS Network
• Our engagement with the (new) TSIs
And an update on:
• Reorganisation
OSCR Online
OSCR Online
The new online service to help charities:
• submit their Annual Return (AR) and
Supplementary Monitoring Return
(SMR) forms online
• Submit annual accounts online
• update charity details online
Thinking about OSCR Online?
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Easy to use
Prevents errors in completing forms
Saves time and money
Access from OSCR website
Available 24/7
But its not all about online filing…
• There is enhanced information available on the
Scottish Charity Register
– Expenditure figures
– For larger charities, an analysis of income and expenditure
via pie charts
• We’ve introduced streamlined AR and SMR forms
– Quicker and easier to complete
• Overdue submissions are highlighted in red
• Area for OSCR notes is included
How do I register?
• Charities indicating a preference for online
filing were automatically registered for the
new online service
• You can register at any time for online
services through the OSCR website
• Online tutorials available
Changes to the Return forms (1)
Annual Return form
– Simplified and no longer includes all the standing
data
– Now requires expenditure for the period
– Asks for number of charity trustees at the end of the
period
– Asks for the number of paid staff at the end of the
period
– Includes an identifier question
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Changes to the Return forms (2)
Supplementary Monitoring Return form
– Some questions removed as these are included on
the Annual Return form
– Removal of the section on connected trading
companies
– Full balance sheet information to be given where
previously we asked for highlights
– A further identifier question is included
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SCIOs
What is a SCIO?
• Scottish Charitable Incorporated
Organisation (SCIO)
• SCIO is a new legal form, which
allows Scottish charities to
incorporate without having to
become companies
Why the SCIO?
Long standing concerns about
unincorporated charities:
• Charity trustees have personal liability
• Members liable to contribute if wound
up
• No legal identity - charity trustees
undertake transactions on the charity’s
behalf
• Creditor confidence - no public notice of
dissolution
Why the SCIO?
What about the company limited
by guarantee?
• Offers limited liability
• Offers separate legal identity
• Is credible to third parties (esp.
creditors)
BUT
• Regulated both by OSCR and by
Companies House
Key features: OSCR’s role
OSCR is the regulator of the legal
form, not just its charitable status,
so:
• same role as for other charities
• plus it’s OSCR who incorporates
the SCIO
• and it’s OSCR who dissolves the
SCIO (not just giving consent)
Key features: the Register
The existence of a SCIO as corporate
body depends on its entry in the
Scottish Charity Register, so:
• No such thing as a SCIO without
charitable status
• When a SCIO is removed from the
Register, it ceases to be a SCIO
Key features: creditor protection
Elements of protection for creditors:
• Solvent dissolution: application notice is
published and the SCIO must write to its
known creditors
• Insolvent dissolution: notice of application
is published, sequestration procedure
followed thereafter
• Creditor-led sequestration (through court):
notice of sequestration is published
Compliance – what’s different?
Differences from other charities:
• Some charity trustee duties apply to
members
• Duty to keep and supply to public a
register of charity trustees
• Duty to keep and supply to members a
register of members
• References to SCIO status
Preparing accounts – what are the
requirements?
Accounting requirements are as for an
unincorporated association:
• Receipts and payments accounts for
SCIOs up to £250k income
• Accrued accounts for SCIOs over
£250k income
Constitutions
Basic elements of a SCIO constitution are required (no steer
on the exact form and content):
• Name and purposes
• Restrictions on powers
• Structure
• Procedural rules (meetings, quorum, voting rights)
• Charity trustee rules (appointment, withdrawal,
remuneration, conflict of interest)
• Membership rules (appointment, withdrawal)
• Purposes for which surplus assets may be used on
dissolution
How many SCIOs are there?
Quite a few! At the end of August 2012:
• 238 SCIOs incorporated since 1 April 2011
(out of 1131 new charities altogether)
• Proportion increasing – 77 SCIOs so far
this year out of 267 total new charities
• 103 applications from unincorporated
charities to move to SCIO
• 5 applications to convert company to SCIO
Discussion
Charity
Reorganisation
Amended regulations due soon!
• Amended Regulations due to come into effect on 1
November 2012
• Updated OSCR Guidance expected soon
Key changes:
• Fast track process for charities with an income
under £1k (13-week turnaround; no publication)
• Regulations allow for representations for and
against a proposed reorganisation scheme
• Updated OSCR Guidance expected soon!
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Restricted Fund
Reorganisation
New to 2012!
Restricted fund:
“property (including money) given to a charity for a
specific purpose and in respect of which conditions
have been imposed as to its use”
If a charity does not have the power to vary the terms
of a restricted fund nor has the power to vary/remove
a condition imposed on the charity in relation to the
use of the fund, it can ask OSCR to approve a
‘restricted fund reorganisation scheme’.
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More on restricted funds
Similar to charity reorganisation - fairly technical. For
us to approve an application:
• The reasons for reorganising the restricted fund
must reflect one of the five conditions set by the
legislation
• Reorganisation must fulfil the (one) outcome set by
the legislation
• The charity must declare that it has been unable to
ascertain the wishes of the donor (and is therefore
applying to OSCR to reorganise instead)
Regulations due late 2012
• Regulations due to come into effect on 1 November
2012
Points to note:
• Fast track process for restricted funds with an
income under £1k (13-week turnaround; no
publication)
• Regulations allow for representations for and
against a proposed reorganisation scheme
• New OSCR Guidance expected soon
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Thank you for listening
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