We have been working with care homes to update their contracts and advise on the risks of charging the resident a regular “top-up” or additional fee where a resident is funded through NHS CHC
What does the latest Charity Commission’s guidance issued on 29 March, titled ‘Guidance for Charities with a Connection to a Non-Charity’, mean for the intra-group arrangements of housing associations (“HAs”)?
The guidance (which is considerably shorter than the draft guidance issued on this area last year) has been issued in response to concerns that charities were exposing themselves to risks through inappropriate connections with non-charitable organisations, including trading subsidiaries, corporate foundations and public bodies. The guidance is designed to help charity trustees understand the risks involved in setting up arrangements with non-charitable organisations and what measures should be put in place to deal with these.
The key principles
The guidance sets out six key principles, several of which will already be extremely familiar to charitable housing association Board members and echo the requirements of the Governance and Financial Viability Standard:
- Recognise the risks;
- Do not further non-charitable purposes;
- Operate independently;
- Avoid unauthorised personal benefit and address conflicts of interest;
- Maintain your charity’s separate identity; and
- Protect your charity.
Impact on housing associations
Whilst the guidance will only apply directly to registered charities (including HAs), exempt charitable HAs (usually community benefit societies) should still have regard to the general principles of the guidance as best practice.
In assessing relationships with connected organisations, charitable HAs should consider:
- relationships with trading subsidiaries (including design and build or development subsidiaries, which are common in the sector);
- funding/support relationships with non-charities;
- arrangements under which the HA works regularly with a non-charity to deliver services, campaigns or other projects;
- services arrangements; and
- relationships with non-charitable entities.
Boards of charitable HAs should bear the guidance in mind when looking at conflicts of interest, managing relationships with non-charities (including their own trading subsidiaries), maintaining the independence of charitable entities and reviewing existing intra-group arrangements.
Key arrangements that might need further review include:
- common Board arrangements between charitable HAs and non-charitable entities;
- staff/resource sharing arrangements;
- intra-group service provision;
- data sharing arrangements;
- arrangements which could allow non-charitable entities to benefit from the charity’s name, brand or logo; and
- funding provided to non-charitable entities.
Charitable HAs should consider reviewing such arrangements to ensure they meet the recommendations of the guidance. The Charity Commission have also issued helpful checklists to assist with this process.
For further advice on what the new guidance means for your organisation, please contact Catherine Simpson.
The parliamentary processes are complete and the Restriction of Public Exit Payments Regulations 2020 (“the Regulations”) which cap exit payments in the public sector at £95,000 will be in force from 4 November.
As the UK’s social housing sector recovers from the initial Covid-19 outbreak and lockdown, now is the time to focus on the challenges that may emerge next.
There is no universal approach to regenerating town centres. However, housing must be considered a key part of any regeneration project – providing well-needed new homes and economic growth.
Friday 16 October marks the 6th annual Wear Red Day in England, Wales and Scotland. Wear Red Day is the brainchild of the charity; Show Racism the Red Card (SRTRC). SRTRC aims to educate young people so they are equipped to recognise and challenge stereotypes, misconceptions and negative attitudes towards race.
Alongside the Building Safety Bill published in July 2020, the Fire Safety Bill is a key step in the Government’s strategy to improve building and fire safety in the wake of the Grenfell Tower tragedy
Government regulations came into force on 23 September 2020 providing LGPS (local government pension scheme) employers with flexibility on meeting exit payments and LGPS funds with flexibility too
Charity Financials, the financial information program from Wilmington Charities, has published its latest Income Monitor report.
As employers face the end of the Coronavirus Job Retention Scheme on 31 October 2020, Katherine Sinclair and Libby Hubbard discuss the intricacies of the redundancy process for furloughed employees.
We have learned many things over the last six months; the latest lesson is that there is no new normal. The Government initiatives and guidance may have slowed down a pace, but the challenges for employers and their employees remain.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.