CHARITY LAW ASSOCIATION UPDATE
December 2004 – February 2005
COBBETTS
3rd March 2005
CONTENTS
1. CHARITY COMMISSION
2. LEGISLATION
3. INLAND REVENUE
4. NATIONAL COUNCIL FOR VOLUNTARY ORGANISATIONS
5. CASES
6. JOURNALS
1 CHARITY COMMISSION (
1.1 Selected Press Releases
7 December 2004 – Using it or losing it: Community Centres and Village Halls
Social demographics are altering the landscape of many towns, villages and cities, and village halls and community centres have to adapt to survive, says a report published by the Charity Commission.
7 December 2004 – New charity aims to improve the justice system
The Commission has registered a unique £3million charity that seeks to improve the way that law is administered. The charity’s hope is that by training and developing people who work in the justice sector, the profession’s workforce will increase its skills and productivity. This is the first time a charity has been set up with this specific objective.
10 December 2004 – The environment? Charitable M’Lord!
In another step towards greater transparency, the Charity Commission has improved access to its decisions. New or significant decisions are now listed, explained and summarised according to name and subject area on the Charity Commission website.
21 December 2004 – New role for Charity Commission as it welcomes Bill’s publication
The Charity Commission welcomes the publication of the Charities Bill and the Government’s response to the Scrutiny Committee’s recommendations.
4 January 2005 – Tsunami Appeal: Maximise the millions
Charities across the UK say the level of fundraising activity for the Tsunami victims is unprecedented. To ensure collections are made as straightforward as possible the Charity Commission publishes guidelines urging people and organisations “to maximise the millions” being raised.
7 January 2005 – New Year, new guidance for paying Trustees
The Charity Commission launches a new fast track system for authorising trustee payments.
7 January 2005 – New Charity Commissioners appointed
The Home Secretary has appointed two new Commissioners for the Charity Commission. John Williams, co-founder and former chairman of PR consultancy Fishburn Hedges and Tess Woodcraft, co-founder and director of The Centre for Strategy and Communication, will join the Charity Commission as it goes through an important time of change under new leadership.
17 January 2005 – How can a Charity invest? The Charity Commission publishes new guidelines
Charities have greater freedom than ever before to invest their funds, but should be cautious when doing so. This is the advice the Charity Commission offers in its new publication “Investment of Charitable Funds – Basic Principles” published on the Charity Commission’s website.
20 January 2005 – Public Awareness of Public Benefit
The Charity Commission publishes draft guidance on how it will make public benefit checks if proposals in the Charities Bill become law.
7 February 2005 – New Welsh charity to give post Tsunami support
Tsunami Relief Cymru, established for the long term rebuilding of countries hit by the Asian Tsunami, has been given charity status by the Charity Commission.
21 February 2005 – Delivering on Public Services: The Charity Commission announces a landmark decision
A landmark decision announced by the Charity Commission means that charities can now deliver public services, which public authorities have a statutory duty to provide. As a result, both the Trafford Community Leisure Trust and the Wigan Leisure Culture Trust have been registered as charities.
22 February 2005 – Charity launched at number 11 Downing Street
Chancellor of the Exchequer Gordon Brown launched the Sheila McKechnie Foundation, an organisation newly registered with the Charity Commission. The charity has been set up to give awards to those individuals involved in charity campaigning.
24 February 2005 – Charity Commission warns against new scam.
Charities risk having their bank accounts emptied in a new scam. Fraudsters obtain charities’ bank account details from Gift Aid forms and use this information to set up standing orders. Charities are urged by the Commission to check bank statements carefully and to consider deposit-only accounts for charitable donations.
1.2 Publications
CC14 – Investment of Charitable Funds: Basic Principles (December 2004)
This substantially revised guidance explains briefly the powers and duties of charity trustees when investing charitable funds.
RS9 – Village Halls and Community Centres (December 2004)
This guidance provides an overview of the challenges faced by village halls, community centres and similar charities and looks at what trustees can and cannot within charity law and regulation in order to adapt their operations to changing circumstances.
RS9 – Villages Halls and Community Centres: Annex A, B, C and D (December 2004)
Annexes relating to RS9.
RR12 – The Promotion of Human Rights (January 2005)
This revised guidance explains why the promotion of human rights is recognised as a charitable purpose and looks at the various ways in which a charity can promote human rights.
1.3 Operational Guidance
OG55 – The Landfill Tax Credit Scheme (January 2005)
Guidance to charity trustees on the landfill tax credit scheme.
OG5 – Appointment of Receivers and Managers (January 2005)
This guidance sets out the law and the Charity Commission’s position in relation to appointing Receivers and Managers for charities.
OG 92 B3 – Authorising Trustee Payments (January 2005)
This guidance describes the approach of the Charity Commission when considering an application for authorisation of payments to trustees
1.4 Other Publications
Summary of the Consultation Responses on the proposed revision of the Charities SORP
Issued 6 December 2004.
Guidance notes CHY-1377a
Streamlined procedures for authorising trustee payments – medium and large charities.
Charity Commission form CHY-1377
Declaration in respect of trustees’ application for authority to pay or otherwise benefit a trustee, or related party, from the provision of the service or goods to the charity.
Maximise the Millions
New guidelines issued for people collecting to help disaster victims.
Commentary on the descriptions of charitable purposes in the Charities Bill (January 2005)
This commentary gives a broad overview of the scope for each of the descriptions of purposes listed in the Charities Bill and the sorts of charitable activity that might fall within each one.
Public Benefit – the Charity Commission’s approach (January 2005)
New draft guidance to illustrate what the Charity Commission expects their approach will be if the provisions in the Charities Bill regarding charities and public benefit become law.
1.5 Other
Launch of the Year of the Volunteer 2005
Yearlong celebration of the work volunteers do and the call to action to get more of the public volunteering.
For further details, see the website
1.6 Decisions of the Commissioners
These pages have been updated and are now include an index of the key issues considered and summaries of each decision.
Trafford Community Leisure Trust and Wigan Leisure Culture Trust – January 2005
A new decision has been published concerning the independence of each organisation from their respective local authority and the ability of charities to provide statutory services. Both organisations were held to have been established for exclusively charitable purposes
Concordis International Trust – February 2005
A new decision has been published confirming the promotion of conflict resolution for the benefit of the public as charitable.
1.7 Inquiry Reports
An up-to-date list of Charity Commission inquiry reports is available at
2 LEGISLATION
Draft legislation to amend Gift Aid provisions in Finance Act 1990 (www.inlandrevenue.gov.uk)
On 21 January 2005, the Inland Revenue published draft legislation to widen the scope of the statutory exemption that allows the right of free admission to be disregarded as a benefit for the purposes of Gift Aid. The aim is to allow more types of charities reliant on visitor support to benefit. The changes are to take effect from April 2006.
Charities Bill
The Charities Bill was introduced into the House of Lords on 20 December 2004. The Bill had its second reading in the Lords on 20 January 2005.
Charities and Trustee Investment Bill (Scotland)
The Charities and Trustee Investment Bill (Scotland) was introduced to the Scottish Parliament on the 16th November 2004. On 26 January 2005, the Office of the Scottish Charities Regulator presented evidence on the Bill to the Scottish Parliament Communities Committee.
The Co-operatives and Community Benefit Societies Act 2003 (Commencement No.2) Order 2004 (SI 2004/3257)
This brings into force section 1 of the 2003 Act on 13 December 2004.
3 INLAND REVENUE (www.inlandrevenue.gov.uk)
26 January 2005: The Home Office launched an initiative aimed at encouraging small and medium sized enterprises to set up a Payroll Giving Scheme. Grants of up to £500 will be available to enterprises with fewer than 500 staff, who set up a Scheme between April 2004 and December 2006.
4 February 2005: The Treasury and Home Office have jointly produced a guide to corporate giving to provide businesses with an overview of the range of tax incentives available for corporate community involvement.
4 NATIONAL COUNCIL FOR VOLUNTARY ORGANISATIONS (NCVO)
“Not all red tape is bad” claims new report on voluntary sector regulation - 8 December 2004
Press release on new report commissioned by the NCVO.
Voluntary Sector response to the introduction of the Charities Bill - 21 December 2004
Press release from NCVO regarding introduction of Charities Bill to the House of Lords.
Working For A Charity to join forces with NCVO’S Workforce project - 19 January 2005
Press release regarding merger.
NCVO publishes 2005 directory - 16 February 2005
Updated Voluntary Agencies Directory 2005 is published by the NCVO.
UK charities called on to join the Make Poverty History mobilisation – 16 February 2005
Press release issued by the NCVO regarding the call by the director of the UN Millennium Development Goals Campaign for UK Charities to support this year’s worldwide action against poverty.
Charities call on next government to value them for more than just the delivery of public services – 16 February 2005
Press release regarding the NCVO general election manifesto 2005.
Launch of new consultation process- 1 March 2005
NCVO have launched a consultation process to determine the key strategic challenges facing the sector over the next decade. A series of nine regional events will be held in March and April to discuss the consultation document, “Your future: a consultation”.
5 CASES (Reported from Lawtel)
Bryan George Michael Ulrich (2) David Ellis Roberts (3) David Maxwell Warren (4) Lynne Joyce Armstrong v (1) Treasury Solicitor (2) Hiram Walker (1992) Ltd (3) HM Attorney General (4) John Field (2005) LTL 8/2/2005 (unreported elsewhere)
The Charitable Trusts (Validation) Act 1954 was not confined in its operation to cases where a charitable purpose had been expressed. The trust in the instant case was validated on the basis that no one could have complained if the trustees had, from the outset, regarded the trust as being one for the relief of poverty.
Archdiocese of Southwark Commission for Schools & Colleges v Custom & Excise Commissioners (2004) LTL 31/1/2005 (unreported elsewhere)
The construction of a new building, which was intended for use for a relevant charitable purpose, was an enlargement or extension of an original building within the meaning of the Value Added Tax Act 1994 Sch.8 Group 5, and therefore the supplies of building works were standard-rated.
The Cirdan Sailing Trust v Customs & Excise Commissioners LTL 21/1/2005
A registered charity, which chartered out manned sailing vessels to schools and youth organisations for the welfare of young people for sea trips, was entitled to zero-rating for supplies of “transport of passengers” under the Value Added Tax Act 1994 Sch.8 Group 8 Item 4(a). The young people could not be regarded as “crew” as they had no duty to perform in relation to the running of the vessel. Whether a vessel was a qualifying ship for the purpose of zero-rating the supply of repairs and maintenance focused on the function of the boat and the use to which it was put by the end user.
6 JOURNALS (Information from Lawtel)
Corporate tax (December/January)
TAX – CHARITIES – CONSTRUCTION LAW – REAL PROPERTY –VAT
In-House Lawyer I.H.L. (2004/05) No.126 December/January Pages 49/51
Publication Date: 1/12/2004 – 1/1/2005
Document No: Articles Index – AL5401856
The hallmarks of good charity management
CHARITIES – TRUSTS
New Law Journal N.L.J. (2004) Vol.154 No.7156 Supp (Charities Appeals Supplement) Pages 30,32
Publication Date: 10/12/2004
Document No: Articles Index – AL3803265
Charity trustees and conflicts of interest
CHARITIES – TRUSTS
New Law Journal N.L.J. (2004) Vol.154 No.7156 (Charities Appeals Supplement) Pages 26, 28
Publication Date: 10/12/2004
Document No: Articles Index – AL3803264
A moral dilemma?
CHARITIES – BANKING AND FINANCE – TRUSTS
New Law Journal N.L.J.(2004) Vol.154 No.7156 Supp (Charities Appeals Supplement) Pages 22,24
Publication Date: 10/12/2004
Document No: Articles Index – AL3803263
Buying and selling charity land
CHARITIES – CONTRACTS – REAL PROPERTY
New Law Journal N.L.J.(2004) Vol.154 No.7156 Supp (Charities Appeals Supplement) Pages 18,20
Publication Date: 10/12/2004
Document No: Articles Index – AL3803262
Between a rock and a hard place
CHARITIES – PENSIONS – TRUSTS
New Law Journal N.L.J.(2004) Vol.154 No.7156 (Charities Appeals Supplement) Pages 14,16
Publication Date: 10/12/2004
Document No: Articles Index – AL3803261
Looking ahead to the Charities Bill
CHARITIES
New Law Journal N.L.J.(2004) Vol.154 No.7156 (Charities Appeals Supplement) Pages 5-6
Publication Date: 10/12/2004
Document No: Articles Index – AL3803259
CICs: more red tape or public benefit?
CHARITIES – COMPANY LAW
New Law Journal N.L.J. (2004)Vol.154 No.7156 Supp (Charities Appeals Supplement) Pages 8,10
Publication Date: 10/12/2004
Document No: Articles Index – AL3803260
Legal developments
CHARITIES – ADMINISTRATIVE LAW – LEGISLATION – VAT
Solicitors Journal S.J.(2004) Vol.148 No.48 Supp (charity & Appeals Update Winter 2004/05) Pages 8-11
Publication Date: 17/12/2004
Document No: Articles Index – AL4202800
Charity disposal?
CHARITIES – REAL PROPERTY – SUCCESSION
Solicitors Journal S.J.(2004) Vol.148 No.48 Page 1448
Publication Date: 17/12/2004
Document No: Articles Index – AL4202792
Future plans
CHARITIES
Solicitors Journal S.J. (2004) Vol.148 No.48 Supp (Charity & Appeals Update Winter 2004/05) Pages 20-21
Publication Date: 17/12/2004
Document No: Articles Index – AL4202805
Nice Work
CHARITIES
Solicitors Journal S.J. (2004) Vol.148 No.48 Supp (Charity & Appeals Update Winter 2004/05) Pages 19-20
Publication Date: 17/12/2004
Documents No: Articles Index – AL4202804
State Support
CHARITIES – HEALTH – SOCIAL WELFARE
Solicitors Journal S.J. (2004) Vol.148 Supp (Charity & Appeals Update Winter 2004/05) Pages 16-18
Publication Date: 17/12/2004
Document No: Articles Index – AL4202803
Lend a hand
CHARITIES
Solicitors Journal S.J. (2004) Vol.148 No.48 Supp (Charity & Appeals Update Winter 2004/05) Pages 14-15
Publication Date: 17/12/2004
Document No: Articles Index – AL4202802
Being different
CHARITIES – EMPLOYMENT
Solicitors Journal S.J. (2004) Vol.148 Supp (Charity & Appeals Update Winter 2004/05) Pages 12-13
Publication Date: 17/12/2004
Document No: Articles Index – AL4202801
Help the aged
PENSIONS – CHARITIES
Pensions World Pen. World (2005) Vol.34 No.1 Pages 21-23
Publication Date: 1/1/2005
Document No: Articles Index – AL3901187
Freedom or fashion?
TRUSTS – CHARITIES
Trusts and Estates Law & Tax Journal T.E.L(2005) No.63 January/February Pages 12-14
Publication Date: 1/1/2005
Document No: Articles Index – AL8100068
Rapid relief from SDLT headaches?
TAX – REAL PROPERTY
Tax Journal Tax J. (2005) No.773 Pages 7-9
Publication Date: 24/1/2005
Document No: Articles Index – AL4302173
Funny business?
VAT – CHARITIES – CONSTRUCTION LAW – TAX
Taxation Tax.(2005) Vol.154 No.3994 pages 439-441
Publication Date : 10/2/2005
Document No: Articles Index – AL4401874
Reaping the benefits
CHARITIES – LEGAL PROFESSION
Law Society’s Gazette L.S.G. (2005) Vol.102 No.06 Pages 24-25
Publication Date: 10/2/2005
Document No: Articles Index – AL3103151
New pavilion problems a worry for charities
VAT – CHARITIES – SPORT – TAX
Tax Journal Tax J.(2005) No.776 Pages 19-20
Publication Date: 14/2/2005
Documents No: Articles Index – AL4302198
Employment law brief (February)
EMPLOYMENT – CHARITIES – DAMAGES – DISCRIMINATION – PERSONAL INJURY
New Law Journal N.L.J. (2005) Vol.155 No.7165 Pages 299-300
Publication Date: 25/2/2005
Document No: Articles Index – AL3803361
