An overview of the key issues affecting charities

Andrew O’Brien

Head of Policy and Engagement

Regulation and policy update

Regulation update

Charities (Protection and

Social Investment) Bill

• New powers are being given to the Charity Commission

including:

• A new ‘official warning’ power

• New powers to disqualify trustees

• A new power to direct charities to be wound up

• New reporting requirements on fundraising

• The Bill will also make explicit the power for charities to

make social investments.

Two things to think

about with the new

powers:

1) Get your accounts in on

time – you have been

warned!

2) Are the trustees

compliant with the

automatic

disqualification criteria?

New financial guidance

• CC12 (managing through financial difficulties), CC19 (managing

reserves) and ‘15 questions for your Board’ aka. Big Board Talk

have all be revised by Charity Commission.

• CC12 and 15 qs are relatively unchanged – although there is

more focus on unplanned closures and the need to maintain

‘essential services’.

• However, CC19 has been significantly revised by the Commission

to make trustees focus on the importance of reserves for

maintaining confidence of stakeholders and to prevent unplanned

closures.

• CFG has significant concerns about this change. Reserves policy

should be decided on the basis of your organisations

risks/opportunities as well as balancing needs of current/future

beneficiaries. There will be a fuller review later in the year, which

CFG will be feeding into.

Fundraising Regulation (1)

• There are new reporting requirements in

the Charities Bill for large charities with

an income of over £1m.

• These charities will have to detail their

approach to fundraising, how many

complaints they have received, whether

they have external agencies working for

them and how they look after vulnerable

people.

• These will need to be stated in the

Annual Report, much like Public Benefit.

Fundraising Regulation (2)

Fundraising Regulation (3)

Things to remember:

• There is a new regulator ‘The Fundraising Regulator’

and all fundraising organisations will be accountable to

it.

• There is likely to be a new Fundraising Preference

Service which all charities need to abide by. Rules yet

to be decided.

• All charities that spend over £100,000 on fundraising

with the public will be required to pay a levy – on

average £1,300.

• The Institute of Fundraising and PFRA are going to

merge and IoF take over responsibility for compliance.

Other regulatory updates

• FRSSE SORP is being abolished and all charities

will have to comply FRS102 with the option to not

do a cash flow statement. This will apply to

reporting period beginning on or after 1st Jan 2016.

• We are awaiting the Charity Commission’s

response on the iXBRL consultation and whether

charities will have the option to file their accounts

digitally as they can with Companies House.

• Auto-enrolment staging dates for small

organisations (with fewer than 30 employees) are

beginning soon and all employers will need to have

it in place by April 2017.

Tax and finance update

Gift Aid

Donor benefits

call for

evidence Gift Aid Small

Donations

Scheme call for

evidence Devolution Online

Intermediaries

New Gift Aid

Declaration –

1st April 2016

Business rates – be aware!

Bank de-risking

• A number of charities that work in fragile

environments (e.g. Syria, Sudan, Gaza, Somalia)

have found it difficult to get access to (or maintain)

banking facilities.

• This is part of a global problem termed ‘de-risking’

where banks seek to minimise their exposure to

risks and fines.

• Charities as low profit clients are particularly

vulnerable and CFG is working very closely with

other charity partners and government to improve

the situation.

Comments, concerns &

questions

Get in touch!

Andrew O’Brien

Head of Policy &

Engagement

Tax, banking, social

investment,

governance

Email:

andrew.o’brien@cfg.org.

uk

Anjelica Finnegan

Senior Policy & Public

Affairs Officer

Pensions, HR & skills,

Financial sustainability

Grants & funding

Email:

anjelica.finnegan@cfg.

org.uk

Heather McLoughlin

Policy & Public

Affairs Officer

Accounting &

reporting, fraud &

economic crime and public

Services

Email:

Heather.McLoughlin@cfg.

org.uk