Charities monthly round-up March 2022

Welcome to our March newsletter!

Have we finally sprung into Spring? From the recent weather, we have been having it certainly feels like we have. Let’s hope it continues.

With the latest announcement as to how we are to live with Covid-19, we must remember how far, as individuals and as a nation, we have come. We have learnt new ways of working and adapted to changing measures to safeguard ourselves, family and friends. Before March 2020, had we ever met so much on Zoom and Teams? How many times have we said, “you are on mute”. Even now, it still happens and if you are like me, you will kick yourself that you have not learnt to ‘unmute’ yourself two years on. 

In this month’s newsletter, we provide the key points to take away from the Charity Commission’s statement and guidance about the implications for charities in light of the invasion of Ukraine, new guidance from the Department for Culture, Media and Sport about reporting safeguarding concerns, snippets from the Spring Statement last week and lessons we can take away from the recent de-registration of a charity who, in the Charity Commission’s opinion, ceased to exist for the public benefit.

We also have an upcoming webinar to discuss the new Charities Act 2022 which will be introduced gradually next year. For further information on the changes that are coming, and other relevant events, sign up here. You can also refer to our ebriefing series or get in touch with Catherine Gibbons or Esther Campsall.  

Ukraine – what to think about when sending funds and working internationally
The British public can always be counted on to support others who are less fortunate than themselves. An example of this is the donations to the Disasters Emergency Committee’s Ukraine Humanitarian Appeal (DEC) having exceeded £100 million in early March. This money has gone towards setting up safe centres with beds, food, washing facilities, transport and psychological support.

The Commission has released a statement which can be read in full here. The statement makes the following salient points:

• Given the last minute and emergency nature of the fundraising, charities should be mindful of the Commission’s guidance on running effective and impactful appeals and holding, moving and receiving funds safely.
• Charities can also set up e-alerts from HM Treasury to keep up to date with the latest financial sanctions on Russia.
• Trustees should follow the Foreign, Commonwealth and Development Office advice on working in high-risk areas to ensure that they are keeping staff and volunteers safe.
• Charities are reminded of the ‘know your partners’ principle. Charities should know their donors and consider whether to accept donations. In light of current affairs, there could be reputational risks in accepting donations from certain individuals or organisations.

Charities that are operating in Russia or Ukraine will want to familiarise themselves with the Commission’s Ukraine humanitarian crisis: guidance for charities and trustees, and its general guidance on operating overseas, which can be found here.

If you require any advice, please get in touch with Edwina Turner or your usual ACS contact.

Reporting safeguarding concerns – what to do?
It can be very difficult when you are made aware of or indeed have witnessed the actions or behaviour of a volunteer or member of staff which is contrary to what you would expect in your organisation. The Department for Culture, Media and Sport (DCMS) have released guidance to explain how you can deal with reporting such concerns. You can find the full guidance here.

Important parts of the guidance are:

• Key resources:
  • Bond has been working with Thirtyone:eight to provide charities with resources that are focused on exploitation including when working overseas
  • NSPCC’s resources about keeping children and young people safe
  • Ann Craft Trust’s safeguarding guidance is specifically focused on vulnerable adults
• Charities should familiarise themselves with the Charity Commission’s guidance.
• It sets out what a charity must do if they receive a safeguarding concern and how they respond to those concerns. This includes speaking with the charity’s safeguarding lead. Referrals and consultations should be made to the local Safeguarding Adults Board or Safeguarding Children Partnership within 24 hours. The charity must not inform the volunteer or employee concerned until advice has been taken. Consideration would also need to be given as to whether it is suitable for the person concerned to continue in their role. This is because even though the concern may be alleged, there is still a significant risk of harm to beneficiaries, staff and volunteers as well as a reputational risk to the charity itself. The trustees would also need to consider filing a serious incident report with the Charity Commission. 

We would always suggest you take advice as soon as a concern is identified. It is paramount that it is handled swiftly. We can assist you with the relevant process and procedures that must be followed, not just internally but also to external agencies including the Safeguarding Adults Board or Safeguarding Children Partnership and the Charity Commission.

If you need any support around safeguarding please contact Tim Coolican or another member of the regulatory team.

Covid-19 vaccinations for those working in care
The Government has now confirmed that being vaccinated against Covid-19 is no longer a mandatory requirement for those working in care.

The regulations imposing VCOD1 and VCOD2 (vaccination as a condition of deployment) have been revoked. As a consequence, care homes will no longer need to check evidence of vaccination for people entering care homes.

For further information, see our ebriefing by Matthew Wort, partner in our employment team.

Payments to trustees: Charity Commission takes regulatory action
The Commission carried out an investigation into a charity-run independent school that caters for pupils with special educational needs. Through the investigation, it was discovered that trustees of the charity were receiving personal benefits and were mismanaging charity funds. The trustees in question have now provided undertakings to say they will not act as trustees or senior managers at any charity for at least eight years.

This is an important reminder that the general rule is that a charity trustee must not benefit from their trusteeship. Unless expressly provided for in the charity’s governing document or where consent has been obtained from the Commission in advance of making any payment to a charity trustee, then no trustee should receive a material benefit, either directly or indirectly. If a payment has been made without seeking the Commission’s consent or has not been applied in accordance with your governing document, you may need to take legal advice as to any remedial action that may need to be taken or what regulatory action the Commission may take. It may also require a serious incident report to be filed at the Charity Commission.

If you have any questions about trustee remuneration or the obligations of trustees around payments from charity funds, please contact Esther Campsall or your usual ACS contact.

Rishi’s Spring Statement
The Spring Statement was released by the Chancellor of the Exchequer on 23 March 2022.

Some of the key points from the statement are:

• The National Insurance threshold has increased to £12,750.
• The basic rate of income tax to drop to 19% by 2024.
• An extra £500 million for the Household Support Fund and distributed to councils across England to help the most vulnerable in society.
• An increase of £1,000 in Employment Allowance (which allows smaller businesses to reduce employers’ national insurance contribution bills).
• Fuel duty has been cut by 5p a litre for one year.

Looking at the commentary coming out in recent days, there is no doubt that many feel that the Spring Statement is severely lacking and does not go far enough to help the living crisis that many people are facing especially when the average household can expect to pay more than £1,300 than it has done previously on energy bills. There was also no real assistance given to those who are in receipt of benefits or who are currently unemployed. 

Former Commission board member to be the next chair
The Government has named Orlando Fraser as its preferred candidate to be the next chair of the Commission. Before being formally appointed, he will need to appear before the DCMS so that his suitability for the role can be established.  

Fraser was previously a former board member of the Commission, having served between 2013 and 2017. Prior to that, he was a commercial barrister for almost thirty years, served on the Civil Justice Council and advisory council for the National Council for Voluntary Organisations, and has been on a management committee for a West London based women’s refuge.

While Fraser did run as a Conservative MP in 2005, the DCMS has said that Fraser has declared no political activity, such as publicly supporting a party or making significant donations, in the last five years.

Disclosure and Barring Services – fees to reduce from 6 April 2022
The DBS will be reducing its fees for carrying out DBS checks on 6 April although the annual fee for the update service will remain at £13.

Chelsea FC: stewardship and sanctions?
Roman Abramovich, Russian billionaire and owner of Chelsea Football Club had said he would transfer ‘stewardship and care of the club’ to the charity trustees of the Chelsea Foundation. The trustees had not accepted such responsibility and had been in talks with the Charity Commission. The trustees have demonstrated that while they no doubt have a strong connection to the football club and no doubt wish to see its success continue, it is important they put their duties as trustees of Chelsea Foundation first. For followers of the ‘beautiful game’, it may be that the trustees do not need to step into the role of ‘owner’ of Chelsea FC if reports of significant investors wanting to purchase the club from Mr Abramovich come to fruition.

For more information

If you would like more details about anything in this newsletter please speak to your usual ACS contact or contact Katie Crosbie.

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