Charitable status is the obvious point of weakness re the WTS. It in no way deserves it. I am interested in forming a discussion group or similar regarding it...away from public view. Anyone interested should email me. If Simon can provide a 'private' forum area that would be cool!
Hallmarks of a Well-run Charity* http://www.charity-commission.gov.uk/
A well-run charity achieves high standards and attracts public confidence and support. The Charity Commission expects every charity to aspire to high standards and will work with it towards ensuring that it:
(a) is formally set up with clearly documented aims and rules by which it will be run, and which should include the legal powers it needs to achieve its aims;
These are set out in the charity's "governing document". Depending on the legal form of the charity, its governing document could be a memorandum and articles of association, a Royal Charter, an Act of Parliament, a constitution, a set of rules, a trust deed, a will, a conveyance or a Scheme made by the court or the Charity Commission. The legal powers and administrative arrangements in every charity's governing document should help it to achieve its charitable aims and manage its resources, not hinder it from doing so. A well-run charity reviews its governing document periodically to keep it up to date and to keep pace with the charity's development. Further guidance on this can be found in Choosing and Preparing a Governing Document (CC22).
(b) is run by a clearly identifiable body of people who take responsibility, and are accountable, for controlling the charity so that it is economically and effectively run,
The governing document should clearly identify who within the charity has this role. The people, or the corporate body, that have this role are legally the "charity trustees", though they may be known by another title such as directors; governors; or members of a management or executive committee or council.
A well-run charity has a trustee body of a manageable size, whose members together have the skills, knowledge and experience needed to run the charity economically and effectively, given its complexity. The charity provides induction for new trustees and opportunities for all trustees to develop their knowledge and skills. They should work collectively, be decisive, guard against dominant individuals, and not allow private interests to influence them. They should adopt and record rules for the delegation of appropriate functions from trustees to staff and/or volunteers. The differing but mutually dependent roles of trustees and staff/volunteers should be clearly understood. Further guidance on trusteeship can be found in Responsibilities of Charity Trustees (CC3).
and who:
(i) act with integrity;
(ii) act in the interests of the charity;
(iii) act without regard to their personal interests;
Charity trustees must act solely in the interests of their charity, regardless of how or by whom they were appointed. They should strive to avoid putting themselves in any position where their duty to act in the charity's interests conflicts, or appears to conflict, with their own personal interests. If this is unavoidable the conflict of interest must be disclosed straightaway to the other trustees, who should make arrangements to prevent the conflict affecting the charity or its reputation. Often the trustees will need to seek specific legal authority for the action or transaction giving rise to the conflict.
Any payment (as opposed to refund of expenses) received by a trustee must have legal authority, must be a reasonable sum for the work done, and must be properly disclosed and accounted for. Further guidance on this can be found in Payment of Charity Trustees (CC11). See also Charities and Insurance (CC49) which explains the circumstances in which indemnity insurance for trustees might be obtained at the cost of the charity.
iv) preserve their independence, neither allowing themselves to be directly controlled by others nor acting as mere representatives of others' interests;
The independence of trustees is of paramount importance. No charity should allow itself to be controlled or manipulated. Sometimes a person or body has a right to appoint (or nominate) trustees for a charity, but that does not give the appointing body any right of influence over the trustees once in place. Trustees must make decisions and exercise their discretions solely in the interests of the charity, as must any other person or body having powers under the governing document. For further details please see our publication The Independence of Charities from the State (RR7).
v) are not disqualified from acting or otherwise unsuitable;
Some people are disqualified by law from acting as trustee of a charity. No-one who:
• has been convicted of a criminal offence involving dishonesty or deception (when the offence remains unspent);
• is an undischarged bankrupt or has made a "composition with creditors" and not been discharged from it;
• has been removed from office as a charity trustee by the courts or the Commission; or
• is disqualified as a company director;
is allowed to be a charity trustee, unless the Charity Commission has lifted the disqualification. It is a criminal offence for a disqualified person to act as a trustee.
No-one who is incapable of understanding the nature of a trustee's duties, or who is unwilling to accept some or all of them, should be appointed as a trustee. No-one under 18 years of age can legally be a trustee of a charitable trust or association.
(c) manages and accounts for its resources well;
A well-run charity understands the needs of its beneficiaries and users. It manages its resources securely and economically and deploys them to the best advantage of its present and future users or beneficiaries. Funders, donors, supporters and users have a right to expect high standards of management and financial control. This in itself requires resources, and it is a false economy to cut administration below the level needed to manage the charity properly. But every charity should be able to show that it has kept administrative costs to the minimum consistent with high standards of management. There is specific guidance on accounting for these costs in Accounting by Charities and Reporting: Statement of Recommended Practice (the Charities SORP 2000). See also our publications Internal Financial Controls for Charities (CC8), Investment of Charitable Funds: Basic Principles (CC14) and Charities’ Reserves (CC19).
(d) complies with all relevant legal and regulatory requirements;
Every charity should identify and comply with its obligations under charity law, such as the accounting requirements of the Charities Act 1993, and under any other body of law which applies to it because of the nature of its activities (eg as an employer) or of its legal form (eg as a company). A well-run charity takes professional advice when in doubt as to its legal or regulatory obligations. We have produced a range of guidance on accounting by charities, beginning with Charity Accounts 2001: The framework (CC61).
(e) acts with respect to the legal and human rights of the individual;
Charities must comply with legislation (in so far as it applies to charities) which protects the human rights of the individual, including those which prohibit discrimination.
(f) is able to show how its activities are, or will be, able to support its charitable aims;
"Activities" means anything done using resources belonging to the charity or under its control, and includes all of its work and services. Activities are not in themselves normally the determining factor in deciding whether or not an organisation is charitable. But an effective charity can readily show how its activities contribute towards the achievement of its aims. No charity may use its resources on any activities which do not contribute, directly or indirectly, to achieving its own aims.
A charity may carry out a trade which furthers its primary charitable aim, but may not carry out any other form of trade. Many charities involved in significant trading establish a separate company and the law in any case requires this where the trading does not directly support, or is ancillary to, the charity's aims. The profits from the trade can then effectively be passed to the charity tax free using a suitable means. Further guidance on this can be found in Charities and Trading (CC35), the Customs and Excise leaflet on Value Added Tax and Charities (VAT notice 701/1/95), and Trading by charities (IR2001), produced by the Inland Revenue.
(g) is open in the conduct of its affairs, except where there is a need to respect confidentiality;
Except where there is a genuine need to respect confidentiality, a charity should be ready to explain and justify the policies and practices it has chosen to adopt. Charities are favoured by the state and the public because their aims are for the benefit of the public. In return, charities are subject to the special regulatory system of charity law, which includes measures to ensure that charities are accountable for, and report publicly on, the use of their resources and the consequences of their activities.
(h) carries out its aims with regard to the requirements of those it is designed to serve, the community within which it operates and any relevant wishes of its donors;
A charity cannot work effectively for its beneficiaries or service users unless it takes steps to discover and understand their needs, and attunes its charitable activity towards meeting those needs. This will often mean giving beneficiaries or users some involvement in the formulation of policies or services.
A well-run charity fulfils the legitimate expectations of those who give money to it. Donations which are received in response to a public appeal must always be used by the trustees in accordance with the terms of that appeal. But trustees are not under the same obligation to observe the wishes of those who donate funds for the general purposes of the charity.
(i) conducts its external relations, fund-raising and publicity in a way that enhances its own reputation and that of charities generally.
Charities, individually and collectively, rely on external support. A charity's reputation is a valuable asset. A well-run charity is sensitive to external opinion and seeks to enhance its standing in its dealings with commercial and public sector bodies, its methods of raising funds, and its advertising and publicity. It also deals responsibly with complaints and criticisms made against it, whether made privately or in the public arena.
A charity may campaign, and carry out other activities with a political dimension, as long as it does so in accordance with our guidelines. Further information and guidance can be found in Political Activities and Campaigning by Charities (CC9) and Charities and Fund-raising (CC20).
A charity may express a viewpoint that is opposed to that of another organisation, provided that it can show that doing so is in direct furtherance of its own charitable aims and provided it is not done in a derogatory way and that there is no promotion of antagonism or violence to another group.
ISP