I was trying to find out the legal responsibilities and obligations of Housing Associations in general and under the Companies Acts, particularly in regard to tenants and in their wider social responsibilities. I tried looking it up on the web but there is not much in layman’s terms. So I would appreciate any summary and/or signposting to websites that explain this in a non-technical way?

I am on the management committee of a community hall, which has an adjoining parking facility for hall users. Unfortunately this is not a closed area and is regularly used by local people who used the adjacent bowling club. We would like to develop a differential charging policy for both hall users and non hall users partly to generate some income, but also to resolve some of the disquiet this parking issues causes. The hall is governed by a deed of trust and there seems to be nothing within that deed to prevent us developing such a charging policy. Can you please advise.

This is a follow-up to the linked questions "Can a charity give up its charitable status?"(5 June) and “How can we sort out this charity's financial muddle?” (19 June)

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The two staff (who work for both the Charity and the non-charity) are paying all proceeds into the non-charity’s bank account.

The pre-school (the Charity) receives funding through parents’ fees and an education grant paid by the government – all paid into the non-charity bank account. The out of school club (non-charity) receives funding from fees only (as far as we know, as they do not seem to know themselves) and this is also paid into the same bank account.

This in essence means that there has been no activity on the Charity’s bank account since December 2006. Does this mean the Charity can be dissolved having no listed assets?

The staff made an estimate of what the combined income and expenditure was for year ending December 2006 based only on bank statements (no paper or other records) and their own estimate of numbers of children attending. This was for both groups. Although this was paid into the non-charitable organisation’s bank account, they created and submitted accounts (and we have not seen these) to the Charity Commission for the charity’s estimated portion.

The parents who use the group would not know (or I think be concerned) as to which one was receiving the money. However, the education grant payments may be a different issue as they are direct grant from the local authority for providing early years education for 3 and 4 year old children who attend the group. This may be an issue for them?

A group of volunteers are organising a sponsored walk to support our charity. In the past they have had 1st Aid cover, but they are finding it difficult to find organisations willing to do this. Also those that are available have increased their charges significantly and the group are concerned that paying for 1st Aid cover could significantly increase costs to put the event on and therefore make the event pointless.

Are groups legally obliged to provide 1st Aid cover?

If in previous communications they indicated that there would be 1st Aid cover - what would the legal issues be if they did not provide cover this time?

This is a follow-up to the question "Can a charity give up its charitable status?", posted on 5 June.

Hi Charlie,

Further to my question regarding a Pre-school giving up charity status: we have now ascertained that the group have no financial records/supporting invoices/receipts. They do however have their bank statements. In the absence of any records we are assuming that an accountant would be unable to untangle the charity and the unincorporated group and make the decision in respect of whether the club is one entity or two sperate organisations.

The accounts submitted to the Charity Commission by the staff are assessed on their bank statement only. As all proceeds are banked together (with no record made of individual transactions) and expenditure is assessed with one cheque being made out when required, the group has indicated there is some guess work involved in this process.

There are 4 trustees but they have no meetings so it would appear that the staff run the 2 groups as 1 but with very little knowledge and support available to them. They have had 2 bank accounts in the past but at some point decided to pay all proceeds into the non charity account.

We have now set up a formal accounting procedure for them which involves retaining all relevant income and expenditure paperwork and ensures that they are now keeping two distinct records for the Charity and unincorporated group. Where would you suggest the group goes from here?

As an independent support organisation what is our position with regard to what we now know about this group, are we obliged to inform the Charity Commission about the situation? Would it be worth laying cards on the table to the Commission letting them know they are now getting things in order and ensure that thay have the necessary support to operate correctly from this point on?

Ideally the group would want to de-register as a charity and run as a Company Limited by Guarantee, but we have advised them to sort the above issues first before taking the next steps.

Charlie

This is a supplementary to the question: "What legal form would suit this consortium?"

They are keen to be a limited company and will seek proper legal advice to help them draft the mem and arts, but I have brief question relating to transfer of assets.

The new company will take over the assets of an existing social enterprise company (not a charity in itself) but they also need to take on responsibility for a small charity with a shop which has a separate board. Can this charity remain independent but be supported / managed by the new company or is it possible for the charity to become part of the Ltd Company sharing a board, directors and gaining support and guidance from the new company?

Or is it possible to wind the charity down and transfer the assets to the new, non-charitable company?

I think that last suggestion might not be legally possible. The assets are neglibile and the shop makes very little money.

Hello Charlie

One of the pre-schools that we are supporting has just been told that the building they operate from (a church hall) has been sold. The buyer is a parent of children who attend the pre-school and is keen that the pre-school continues in the building in the future. The question is now whether they have a lease or licence agreement. A lease would be more secure for them but they are not the only users (one other group use it every night).

Could they have a lease with the new owners and sub-let to the other user? If they can do this, what is the normal term for this type of lease? Are maintenance, utilities etc subject to negotiation and how will they determine a realistic rent? They currently pay £200 per week for 38 weeks per year. I am assuming that if they can sub-let they can use the model licence agreement that you have already provided for us in the past?

Dear Charlie, I am involved with a group of voluntary organisations who are thinking of forming a Trust. I realise that this is a broad sweeping question but can you help me with pros & cons; how to go about this; etc.

In fact any information would be appreciated.

A change up consortium made up of not for profit organisations wishes to set up a new company for charitable purpose, to take over the existing assets of a failing social enterprise and to run the successful business of the consortium on a more formal basis. Should it seek to set up as a company with charitable purposes and limited liability, or as a community interest company or a COI ?

They do not wish to be a charity, as many of the existing consortium members are charities already.

Also, are there standard mem and arts which they can use rather than having to write a new set themselves ?

Hi Charlie,

I am working with a pre-school who would like to give up their charity status.

They also run a before & after school club that is not a charity. The Charity is being supported and funded by the before/after school club. The Charity has a PLA constitution and all assests held belong to the before/after school clubs.

The charity is struggling to recruit trustees/committee members and the group feel they would like all 3 services under one umbrella of a company limited by guarantee. The before/after school club are an unincorporated body.

Any advise on giving up charity status and considerations the group needs to take into account? Thanks.