Legal aspects to consider as we move into the future Diane Gill | Partner Corporate and Commercial

June 2010: The cuts are going to come quick and they are going to go deep. Themes from the 2011 Charities Risk Survey: Public services cut, so greater demand from users Less funding available to charities to help meet this need Greater need for effective external relationships Charities should consider merger What the future holds

Core duties of a trustee November 2011: While charities are understandably preoccupied with the task of weathering the financial storm…it is important that trustees remain mindful of their core duties. Ultimate responsibility for directing the affairs of a charity ensuring that it is solvent, well-run and delivers its charitable purposes for the benefit of the public. Compliance Duty of prudence Duty of care

Five legal aspects a prudent trustee should be aware of; 1.Structure 2.Governance 3.Effective external relationships 4.HR issues 5.Merger What should a trustee consider?

Structure How is your charity incorporated? Does this meet the needs of how the charity now operates? Are the assets protected? What is the plan for growth? Charitable incorporated organisations

“Emmaus UK started as an unincorporated organisation but incorporating it as a company limited by guarantee meant the federation could formalise its member involvement, allowing the national body to exercise some control over local groups using the Emmaus name.” Emmaus UK

Governance Consider what governance challenges do you face? When did anyone last look at the governing documents? What skills do the trustees and management have? Are these skills up to date and current? Where are the gaps?

Effective external relationships Who are you dealing with? Are there any constraints on entering into the relationship? Does it further the charitable purposes? How is it documented? Are key areas / ”what ifs” covered? Scope of services Liability and limiting it Pricing Duration, termination and exit Intellectual property Confidentiality Does it reflect how the relationship operates?

Important HR issues Dismissal related issues Do not rely on the goodwill of employees when cutting costs. Protect the charity and follow proper processes. TUPE 2006 Public funding has been cut, so services are being taken over by communities/charities. Transfer of Undertakings (Protection of Employment) Regs could apply to transfer public sector employees.

Merger Buckinghamshire has THREE times the number of charities per head than other counties. A merger, with the right charity, could: make your charity more efficient and more effective; better meet the needs of the beneficiaries/users of the charities involved; and make best use of all charitable funds and property.

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