Dear Charlie,

There is a unincorporated charity that is in financial difficulty and are running down their reserves. A business advisor has suggested that they trade their way out of difficulty, but to do this they would need substantial subsidy fron the LA.

What is the position for the trustees if they continue trading knowing that they are in clear financial difficulty?

Personal Liability.

A minority number of directors of an incorporated charity are concered that the failure by a majority of the directors to control restricted funds correctly and to abide by employment, health and safety etc legislation may be making them personally liable.

What action can they take to ensure that this is not the case?

I am working with a committee of a pre-school and they have raised the following: Each year playgroup has a summer trip and for the last few years no members of staff actually attend the trip. It is now run by the committee & the children attend with parents/carers. How do we stand on fact that none of the committee members attending the trip are first aid trained? We understand once we arrive at the destinantion there would probably be first aid trained staff, but whilst in transit if anything were to happen would responsibility fall on the committee running the trip or as parents/carers are in attendance would they be responsible?

Dear Charlie

You recently responded to a question posted regarding changing clause 12 in the document you have previously sent to us ‘Occupational licence for accommodation within Organisation X’s Buildings’. You also said that it would affect clause 22 of the same document and we have reworded it as follows. It is a reworking of bits from both example licences and is much shorter than the original Clause 22, but I think it would work. Basically it says that they will indemnify the community association unless they have failed to do what it says they should in the lease.

22. The Group shall indemnify and save harmless Organisation X and members of its governing body from and against all actions, claims and demands arising out of the Licence hereby granted (save to the extent that such loss or damage arises out of the acts or omissions on the part of the Organisation X).

We would appreciate your comments.