From the Wales Charity Law and Governance Conference 2014.

1. Charity Law Update &
Q & A Session for Advisors
Giselle Davies
Partner, Geldards LLP

2. Charity Law Update
• CIO Implementation
• Registration issues
• Transfers from Local Authorities
• Charities & Government Policy
• Sector round-up / recent highlights

3. CIO Implementation
• Legislation progress?
• Practical acceptance?
Yes - Creation of new charities
Yes - Creation for “incorporation”
Yes - No minimal income limits
No - Conversions from companies or I & P
Societies
Yes - Used for most new start ups now, unless good
reason for CLG

4. Registration Issues
• Post “Cup Trust”:
- Harder to register
- More focus on Public Benefit information
- More follow up questions
- Evidence required
- Reasons to say “no” rather than say “yes”
- Private benefit
- Relationship with individual or corporate sponsor

5. Transfer from Local Authorities
• Watch out for:
- LA control
- Trustee conflicts of interest / loyalty
- Pension issues relating to staff transfers
- Ownership of buildings – risks

6. Charities & Government Policy
E.g. Climate change reduction; waste recycling; ethnic
minority participation; voluntary sector skills;
encouragement of social enterprise
•Watch out for:
- Independence issues
- Political neutrality
- Risk transfer from funder
- Unrecorded instructions / changes to grant schemes
- Lack of adequate supervision / reporting
requirements

7. Sector Round Up
• Learning lessons from Dove Trust
• Recent Tribunal / Court / CC decisions
• Continuing need for mergers
• Social investment matters
• Treasury consultation
• Annual return changes

8. Dove Trust / Charity Giving Website
• In administration
• Decision on distribution of remaining funds
• Lessons:
- Who is the contract with?
- Read the small print
- Ensure early transfers of funds
- Check the safeguards/insurance

9. Tribunal / Court decisions
• Bath Recreation Ground
- Still ongoing after 15 years
- Main issues – use by public v use by Bath RFC &
control by LA
- Will permission for further appeal be granted?

10. Regentford Limited
• When has charity ceased to operate?
- Reinstated to Register of Companies but
- No charitable activities
- CC right to refuse to remove from register

11. Appeals against CC decisions
Colman v CC
•Former trustee
•No standing at Tribunal
•Same as any other member of public

12. CC Inquiries
• Double Defaulters
- Class Inquiry for non-filers of accounts
• Other themes
- Governance
- Management & administration
- Financial Management
- Overseas work
- Purchase / use of property
- Fundraising
- “faith” charities

13. Need for Mergers
• Worsening economic position for charities
• Local authority reorganisation
• Geographical / Cross sector commissioning

14. Social Investment
• By charities – Law Commission Consultation
on need for new statutory power (to
18/06/14)
• By “investors” – Social Investment Tax Relief

15. HMRC / Treasury Consultation
(Results awaited)
•Aim to avoid another “Cup Trust”
But:
•Donations to charity attract tax relief
•How to balance need for caution but avoid
discouraging genuine philanthropy?

16. Annual Return Changes
• New questions:
- Raise funds from public?
- Trading subsidiary?
- Payment to trustees
- Policies in place?
- Another regulator?
- Make grants predominantly?

17. Your questions…

18. Thank You

19. Contact details
Giselle Davies
DD: 029 2039 1797
M: 07918 651 663
E: giselle.davies@geldards.com