Running any group

Governance is about managing your group, whether small or large, charitable or profit driven. You will need a set of rules and a group of people prepared to oversee the work i.e. your governing document and management committee.


Up to 15 people work well as a committee, meeting regularly to decide how to run your group, who will do what and how to answer to your members. By law they have to make sure the group achieves its aims so if something goes wrong or if money is lost, the committee could be held personally liable. 


When recruiting people for your committee, it is good to have a range of skills covering finance, administration, publicity, previous experience and more. You also need three people to become ‘Honorary Officers’ - chair, secretary, and treasurer - to cover essential roles.  You may also ask other people join the committee in an advisory capacity i.e. someone who gives advice but does not vote on decisions and is not legally responsible for decisions taken.


Each group will decide how to run things. You can read guidance at the Charity Commission website, read Legal Structures and ask people already doing the role. You will need to hold an Annual General Meeting (AGM) each year to present annual report and accounts and where the committee stand for election.   You may set up ‘sub-committees’, delegating specific work to a small group of trustees and other people e.g. fundraising or finance.  They report back to the main committee.


Skills you might need:


Planning: Writing plans, monitoring progress, looking forward etc
Interpersonal: Public speaking, active listening, reading information, chairing meetings, making decisions, leadership etc
Legal: Understand contracts, devising policy, interpreting charity law etc
Finance: Costing projects, budgeting, monitoring cash flow, insurance etc
Fundraising: Negotiating contracts, finding supporters, running events etc
Public Relations: Liaising with the media, dealing with local government etc
Managing people: understand employment practice, motivate staff etc

  
 NEWS: Charity Commission updates their Trustee Toolkit

As the regulator for charitable bodies, the Charity Commission has just published the third chapter of ‘Protecting Charities from Harm’ - its online compliance toolkit which gives trustees practical guidance on managing charity risks, part of their legal duty. You will read about warning signs of fraud, money laundering and other financial misconduct as well as cases studies on what to do in specific circumstances.


The previous chapters covered charities and terrorism, due diligence and monitoring. The last chapter will cover holding, transferring and receiving funds safely in an international context. Go to www.charitycommission.gov.uk 
 

  
 Is My Group Charitable?

Being a registered charity is not the same as being charitable. Any group can be charitable i.e. support the local community in some way. 


When you decide your legal structure (see Legal Structure) you will then be able to ask the Charity Commission to set you up as a registered charity. Some charitable groups cannot do this e.g. Community Interest Companies due to their structure.


Being a Registered Charity has advantages such as access to certain funding, an improved public image and some relief from tax, VAT and rates. You will have to comply with charity law - all is explained on the Charity Commission’s website.

  
 Trustee Indemnity Insurance

Many people ask about this. If your group is registered as a charity, you may want to consider trustee indemnity insurance which is taken out by the committee as insurance against personal liability arising from their actions. You can only do this if your governing document allows it (an amendment to allow this must have the prior consent of the Charity Commission). It does not cover liability arising from an act which the person knew was fraudulent, or a knowing breach of trust.

Russell Cooke, solicitors, have a useful document - Risks of becoming a Trustee - which you can download from below.  Do remember though that the rewards of being a Trustee outweigh any worries!!!

Risks of Becoming a Trustee

      
 Risk......

The Charity Commission have published some useful information on avoiding risk for small charities in the form of:

  • 10 useful questions for avoiding problems
  • Simplified risk management for small charities
  • How to avoid typical risks

To access go to their website.

  
 Avoiding problems in runnng your charity

The Charity Commission have produced a new guide intending to help charities avoid problems running their organisations, topics include:

  • 10 useful questions for avoiding problems
  • Simplified risk management for small charities
  • How to avoid typical risks

This link will take you to the specific page.

  
 contact details

Carole Short
Capacity Building Officer
CVA
2a Garnet Road
Thornton Heath
CR7 8RD

020 8665 7767

carole.short@cvalive.org.uk

  
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 Useful Links

CVA LINKS

LINKS TO OTHER USEFUL WEBSITES

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Volunteering

Our board and trustees

Sandy Adirondack has been writing on legal issues for the voluntary sector for a while.  Worth checking at www.sandy-a.co.uk/legal

This weekly email bulletin rounds up national voluntary news and issues and policy changes at www.volresource.org.uk

Further support for trustees at www.trusteenet.org.uk

 

  
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Please note:  not all of the opinion expressed via this website constitutes the policy or position of CVA. Thank you.

  
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