Over the coming weeks we’ll be posting up a series of pertinent articles tackling some of the key issues currently affecting the Third Sector. You’ll find the latest of these invaluable features below. To view previous articles simply click on whichever one appeals to you from the list on the right.
December 2009
The Charity Commission speaks of the ‘voluntary principle’ in relation to any personal benefit to charity trustees gained from being ‘in control’ of the organisation. It forbids any transaction that might create financial advantage to the trustee, whether it’s direct or indirect. And it doesn’t stop there. Members of the trustee’s family, their business connections, or other non-charitable organisations they may be involved with cannot be seen to benefit either.
That said, as it stands, the law does not stop a trustee from claiming back costs incurred when acting as an agent for the charity – for example, covering travel costs to a meeting or fundraising event.
Where the confusion arises is the exception where the founder of a charitable trust authorises a benefit to trustees that only marginally encroaches on the main public benefit the trust is supposed to be providing. The onus here is to make sure the benefit is indeed incidental, and to be able to prove it if challenged by the Charity Commission. There is risk of charitable status being revoked otherwise.
people who need people...
Further areas of confusion may arise when it comes to volunteers. Here we stray into the labyrinth of contract and employment law, and there are an increasing number of cases of volunteers bringing actions against charities in Employment Tribunals.
There are various – and very subtle - elements that need to be considered when differentiating between a volunteer, employee or worker. These include an offer, acceptance, intention to create legal relations by both parties, and consideration – which need not even be monetary.
At Charita, we have the legal expertise to review existing arrangements with trustees to ensure that they are legally compliant, and advise on unclear areas concerning remuneration and expenses. We can also review all your arrangements with volunteers to make sure you’re covered in the event of any Employment Tribunal action by them at any time in the future. Why not contact a member of our expert team at info@charita.co.uk today?