1. Charity registration workshop Charity Commission for Northern Ireland

2. Workshop objectives By the end of this workshop you will have a clearer understanding of the following: Answering key elements of your charity registration application – How to assess your organisation’s purposes – How to draft a public benefit statement Navigating the online registration process

3. Workshop schedule Introduction to Charity registration10 mins Assessing charitable purposes25 mins Purposes and Public benefit toolkit35 mins Break10 mins Online registration system30 mins Questions10 mins

4. Introduction to charity registration

5. Key terms Charity trustee: The people who are legally responsible for the control and management of the administration of the charity. They may be called trustees, governors, directors, committee members or some other title. Governing document: This is any document that sets out the charity’s purposes and how it is to be administered. It may be a trust deed, constitution, memorandum and articles of association, a Royal Charter or some other formal document. Control and direction: Those who have control and direction of an organisation are the people who are ultimately responsible for its management and governance – the trustees.

6. Background: charity registration in Northern Ireland All organisations that are charitable – whether previously recognised as such or not - must apply to register No exceptions or exemptions Charity trustees responsible for ensuring organisation registers and adheres to charity law Differs from registration with HMRC for tax status Organisations will be called forward in tranches drawn from the registration list which contains details of organisations the Commission is aware of for registration – Deemed / non-deemed

7. What is a charity? Established for exclusively charitable purposes: each purpose must fit within one or more of 12 descriptions of purpose and be for the public benefit Charities Act (Northern Ireland) 2008, as amended

8. What are the 12 charitable purposes? Environmental protection or improvement Education Health, saving lives Relief of those in need Arts, culture, heritage, science Citizenship, Community development Human rights, conflict resolution, reconciliation, promotion religious racial harmony, equality, diversity Animal welfare Religion Amateur sport Relief of poverty Supporting guidance Any other charitable purpose

9. What is the public benefit requirement? Benefit: this is the way in which an organisation’s purposes are beneficial and the extent to which they are beneficial. The benefit must: flow from the charity’s purposes be capable of being demonstrated be beneficial, not harmful. Public: the organisation must know who the intended beneficiaries are and how they might benefit. The benefit which flows from the charity’s purposes must: be to the public or to a section of the public not provide a private benefit to individuals unless this benefit is incidental. The nature of the public benefit and the way it may be demonstrated will be different for each purpose and for each organisation.

10. What is private benefit? Private benefit occurs when: an individual or organisation, that is not an intended beneficiary gains from the purposes of the organisation. In some cases this benefit may be proper. In other cases the private benefit may outweigh the public benefit and prevent the organisation from being a charity.

11. When could private benefit prevent an organisation being a charity? Where an organisation has as a purpose to provide a private benefit Where the organisation’s beneficiaries are a private class rather than the public or a section of the public Where the private benefit outweighs the public benefit.

12. Examples of private benefit Likely to be acceptable: A purpose to regenerate rundown buildings of historical interest and open them for educational purposes. This may lead to an increase in tourism and benefit local hospitality providers. This is an incidental by-product of the purpose and is not a purpose in itself and is likely to be acceptable. A charity is established to advance appreciation of culture and the arts. It plans a series of concerts featuring local musicians. The musicians benefit from exposure to a wider audience which may result in their gaining a higher profile. This is incidental to the achievement of the purpose and is necessary to help the charity achieve its purpose.

13. Examples of Private benefit Unlikely to be acceptable: A Will established a trust fund to provide for the education of the descendants of three named individuals. This was not found to be charitable because the beneficiaries were defined by their connection to named individuals so were not the public or a section of the public. An organisation had a purpose of promoting trade, commerce and enterprise. It argued that there was a benefit to the public in the increase of profitable businesses and the reduction of unemployment. The organisation was found not to be a charity because its purpose provided a private benefit to the individuals engaged in trade, commerce or enterprise and the benefit to the public was too remote.

14. Public benefit requirement and purposes: Toolkit Rationale for the toolkit – identify or review the purposes of their organisation – ensure the charity’s purposes adequately express what the organisation was set up to achieve – identify or review the public benefit flowing from each of its charitable purposes – complete the response to the public benefit section of the online charity registration form Three sections – Reviewing organisation’s purposes – Completing the public benefit statement – Example purposes and completed public benefit statement The public benefit statement must be completed for each purpose.

15. Toolkit: purposes Identifying or reviewing your organisation’s purposes – What are charitable purposes Fall within one of the descriptions in the Charities Act and Are for the public benefit – Why they are important – What / who / where – Distinct from powers – Can not be illegal or political

16. Toolkit: purposes

17. Purposes checklist QuestionHelp noteYesNo Is it clear from your purpose what your organisation is set up to achieve? Each purpose must be described clearly and unambiguously, using words with a commonly accepted meaning so that it is clear to your trustees, beneficiaries and members of the general public. You may wish to ask a critical friend to read your purposes and answer this question. Is this purpose exclusively charitable? Each purpose must fit within at least one of the 12 descriptions of charitable purposes in the Charities Act and be for the public benefit. Is this a purpose rather than a power? It is important that the purposes of the charity are not confused with its powers, as powers are not charitable in themselves. Powers set out how you can go about achieving your purposes. Have you reviewed this purpose against the ‘top tips’? Particular words and phrases may appear to be there to aid the fluency of the document but these can be the words and phrases that create difficulties for organisations. Refer to ‘top tips’ which begin on page 10. Is it clear from your purposes who the intended beneficiaries are? If your organisation is set up to benefit a particular section of the public rather than the public as a whole, we suggest you make it clear in the purpose. This is best practice, and not a legal requirement. For example your purpose may specify that you are providing benefits for school children or people with a particular illness. Is it clear from your purpose what the area of benefit is? If the benefits of the organisation are to be defined by a particular geographical area, we suggest that this is made clear in the purpose. This is best practice, and not a legal requirement. Your area of benefit may range from the global population to a particular district or village.

18. Practical exercise 1 Charitable purposes

19. Practical exercise part one To advance education among children of pre-school age in the Belfast area in order to facilitate a successful transition into primary school learning. Purpose 1: charitable, clear who, what and where To advance education Purpose 2: vague, description of purpose, would need more information, may or may not be charitable.

20. Practical exercise part one continued The purpose of the organisation is to campaign to change the law to abolish the sale and purchase of alcohol in order to advance health Purpose 3: not a charitable purpose as it is a political purpose. The purposes of the charity are for the public benefit: 1 to promote the care, safety and upbringing of children and young people by:- 1.1 supporting and assisting those in need, their families and carers; 1.2 promoting their health; and 1.3 advancing their education. Purpose 4: likely to be a charitable purpose, but confuses means with purposes, vague in parts.

21. Toolkit: public benefit Completing the public benefit statement The benefit that flows from each of your purposes. Demonstrating this benefit. Any harm arising from the purpose and whether this is outweighed by the benefit. Who the beneficiaries are: the public or a section of the public. Whether any individual or organisation gains a private benefit and, if so, that this is incidental in achieving the purpose Complete sentences in the toolkit Draft in a separate document and copy into online application form

22. Toolkit: public benefit

23. Benefit element For each purpose: What benefit flows from it? The benefits which flow from this purpose include improved health outcomes and reduced levels of stress and anxiety Can you demonstrate the benefit? These benefits will be demonstrated through feedback from patients and regular independent evaluation of our services Is any harm or possibility of harm outweighed by the benefit? In providing medical treatment for patients with illness x there is a risk of unintended side effects from the drugs however this is rare and the benefit outweighs the harm

24. Public element For each purpose: Who is the benefit for? The benefits of this purpose are provided to those diagnosed with illness x and to their families and carers Is there any private benefit? Is it incidental and necessary? The private benefit flowing from this purpose is that gained by a Trustee who also has a teenage child who uses the respite service. This trustee applies for and is assigned respite in the same way as all other beneficiaries therefore it is incidental

25. Public benefit statement The benefits which flow from this purpose include improved health outcomes and reduced levels of stress and anxiety These benefits will be demonstrated through feedback from patients and regular independent evaluation of our services In providing medical treatment for patients with illness x there is a risk of unintended side effects from the drugs however this is rare and the benefit outweighs the harm The benefits of this purpose are provided to those diagnosed with illness x and to their families and carers The private benefit flowing from this purpose is that gained by a Trustee who also has a teenage child who uses the respite service. This trustee applies for and is assigned respite in the same way as all other beneficiaries therefore it is incidental

26. Practical exercise 2 Public benefit statement

27. Practical exercise part two Example public benefit statement The trustees believe that our purpose satisfies both elements of the public benefit requirement. Purpose one The direct benefits which flow from this purpose include an increase in the number of children in education across the world and reduced infant and child mortality rates. These benefits can be demonstrated through official government statistics. There is the potential for harm in sending volunteers to dangerous parts of the world however this is mitigated through having policies in place to protect them and is necessary to achieving the purpose. The beneficiaries of this purpose are children in any country of the world. A private benefit may be to the travel company with whom we have a relationship to facilitate the movement of volunteers abroad. These benefits are incidental and necessary to ensure the benefit is provided to our beneficiaries.

28. Registration process: questions Any questions?

29. Registration process: the online application system

30. What do you need to apply? Registration information and document checklist Up to date governing document Trustee declaration Details of charity trustees: DOB, contact details, current and previous names Bank details Most recent annual report (not essential) Latest set of financial accounts (not essential)

31. Applying for registration Online process Provided with a unique password Three months to submit your application once you are invited forward Don’t have to complete in one sitting – once receive application number can log in and log out No activity – time out Different routes for some types of charity eg charitable company asked for company no. DO NOT select ‘approved governing documents’ unless you are part of a pre-approved group registration eg PTAs System has help information System indicates what information is available on the public register – purposes and activities – area(s) of operation – financial information – trustee names Some information is compulsory: you will not be able to progress without an answer *

32. Registration process: guidance and resources available Registering as a charity in Northern Ireland guidance Public benefit requirement statutory guidance Purposes and public benefit toolkit Registration document and information checklist Registration information form: trustees and key contact Trustee declaration form Helper groups Model governing documents Online tutorial

33. Online registration tutorial

34. Online services If registered, organisation will receive: – Welcome Pack – Log-in details to ‘Online services’ From Online services, organisation can amend information, for example: – Area of operation – What your charity does – How your charity does its work – Bank / building society details – Website address – Details of trustees

35. Common errors: avoid! 1.Incorrect / incomplete attachments – Ensure the 3 required documents are attached; complete governing document with no pages missing, recent bank/building society account statement in charity’s name, completed trustee declaration 2.Incorrectly selecting approved governing document – Answer no unless you are using a governing document that has been pre- approved by the Commission, does not refer to internal approval 3.Purposes in application do not match those in governing document – Should be a direct replica of purposes (objects) in governing document 4.Poor public benefit statement – Ensure that you use the toolkit, account for public benefit flowing from EACH purpose

36. Common errors: avoid! 5.Poor ‘what your organisation does’ response – Supplement public benefit statement, refer to the activities the organisation carries out to advance its purposes 6.Inaccurate what / how / who classifications – Consider the full lists, select all that apply, do not select more than are necessary, should be an accurate reflection of organisation 7.Incorrect number of trustees or incorrectly identified – Check governing document for minimum requirement number of trustees, ensure details of ALL trustees are entered on the application 8.Trustee declaration completed incorrectly – Complete both sides, must be signed and dated (date of signature) by all trustees

37. Next steps Gather all information needed from within your organisation using the checklist produced by the Commission Read the public benefit statutory guidance Use Commission guidance to prepare your application for registration Get trustee declaration signed If you need more help, consider approaching a helper group Submit application for registration by the deadline – ideally well before

38. Thank you Any questions?

39. For more information visit our website www.charitycommissionni.org.uk