Can the Post Office use our village hall?

Question

I am Secretary/Treasurer of a village hall trust in S.E.Cumbria. Our village post office is listed for closure, and our hall has been named as the Host for a three half-day a week Outreach service. Our details have been given on the Post Office's leaflet "Change to your local Post Office branch" despite our not having agreed to this use for the Hall. The Chairman wrote to the Post Office on Feb 28th asking for answers to a number of points before we can even consider the question fully, since the committee is unanimously against the Post Office closure, and we can see a number of objections to the use of the Hall. I can probably get the Chairman's permission to pass copies of his letters to the Post Office to you. Specifically we asked for a response to the first letter by March 18th, which by chance was the date of the Post Offices announcement of this area's PO changes, and of our AGM, and the first committee meeting of the current year. No response was forthcoming, although a phone call said that they still had to get answers to two of our questions.

Following the committee meeting a further letter was sent to the Post Office which should have arrived today, expressing our disappointment at the lack of a reply.

Can you make any comment on what actions are available to us? How can we get a response from the Post Office? and what actions could we take which might in any way influence the Post Office's decision on the closure?

The questions we have asked relate in part to the fact that having the Post Office in the Hall will affect Hall usage over the year, although not on a regular weekly basis. The Hall is one large room with no small subsidiary room which could house the Post Office. Amongst our concerns are the inability to have building work, repairs and decorations carried out readily if the PO are in occupation for part of three days a week (We are in the last stages of grant seeking for an overhaul of the kitchen which will block access to the Hall for several weeks once it starts). The local primary school has no hall and uses our Hall for rehearsals and performance of their Christmas concert (4 full days' use of the Hall). A charity textile collection for the Air Ambulance uses the Hall over two days 3 times a year, and there are other uses which would be restricted, or even become impossible if the PO gets in.

We feel that we are being railroaded into a decision which we don't want. The PO will not tell us what rent they would be prepared to pay if they use the hall, but they obviously expect us to roll over and give in, because of the effect of NOT having a PO in the village.

Personally, I object strongly to the PO - a large business - attempting to force a small volunteer-run body, a registered charity, to provide them with space for their business, when there are still commercial premises in the village which night seem more appropriate for the task, which have not yet been approached.

I would appreciate receiving any comments you could make which might help us with this problem.


Answer

I can offer a few comments on legal aspects of this situation, and encourage other experts to offer advice regarding such things as how you might influence the Post Office.

As your village hall is a registered charity, the board of trustees (who might be called the management committee or similar) have certain duties and responsibilities – none of them to the Post Office.

The trustees need to consider the resources that are available to them, which will include the premises, volunteer time, and money, and consider how best these might be used for the community that the charity serves. This should always be done with reference to the registered objects of the charity, which are legally extremely important as they set absolutely the boundaries within which the charity may work.

So before the charity can even consider entering into an agreement with the Post Office it must satisfy itself that:

(a) it has the legal powers to do this – by reference to its objects clause; and

(b) such an agreement is the best use of the resources that would be committed.

If the proposed agreement fails either or both of these tests, there is just one other way in which the charity could still provide accommodation for the Post Office outreach service. This would be if the hall had surplus capacity; in this case, presumably that would mean that there were no community demands on the hall on the days that the PO wanted it. If that were the case, the charity could rent the hall to the PO at full market value, and treat this not as a charitable activity, but as income generation. However, if ever a community demand arose for the hall during those periods, the agreement with the PO should be terminated.

In any case the trustees must satisfy themselves that entering into such an agreement would be prudent: i.e. it must be not expose the charity to undue financial risk.

The Post Office cannot bully the trustees into signing any agreement. If the trustees are not satisfied that allowing the PO to use its space is neither furthering its charitable aims nor an acceptable income generation activity, or they conclude it is financial risky, then they must refuse to enter into such an agreement.

The Charity Commission in fact uses a similar case study to illustrate its guidance note “Village Halls and Community Centres”. Here’s what they say:-

"Non-recreational and commercial activities

The objects of village hall charities specify the provision of recreational facilities. However, the hall is likely to be used by a number of user groups whose activities can be diverse. These groups need not always be charitable in their own right but must be capable of improving the conditions of life for the public at large in the area of benefit, within the scope of the Recreational Charities Act 1958. Examples would include users such as line dancing groups or bridge clubs, or an MP holding his or her surgery at the hall. These are acceptable activities provided there is no distinction on, for example, grounds of race, sex or politics, and that no group is given a monopoly on the facility or is put in a privileged position vis-à-vis other groups.

Not all organisations or individuals wishing to use the hall will come within the scope of the Recreational Charities Act 1958. Our research findings echo other research which shows an increase in the number of non-recreational activities accommodated in village halls, such as training activities, clinics, IT centres, after-school activities, sub post offices, a village shop or a bar.

Successful accommodation of non-recreational or commercial activities depends upon careful consideration of whether the proposal will impinge on the running of the village hall as a charity or expose it to any financial risk.

Case study:
A village hall charity wished to rent out part of its premises to house the post office after the previous one had been destroyed in a fire. The Charity Commission considered the request together with the terms of the charity's governing document to establish whether the charity had the necessary authority to enter into such an arrangement. Once this was confirmed, the charity was advised that, as long as it complied with the provisos that the provision of a post office did not interfere with the charitable activity of the hall and did not expose the charity to financial risk, the proposal was acceptable."

As this case study implies, if your trustees have any doubts about the legality or wisdom of entering into an agreement with the Post Office, they can ask the Charity Commission for guidance.


This item is part of Rural Service Support in partnership with CRC

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c.cattell's picture

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Charlie Cattell is a specialist in legal and governance matters relating to social enterprises, charities and voluntary organisations, assisting a wide range of groups with legal structures, organisational management, and regulatory issues.