Memorandum from Village Retail Services
Association ViRSA Educational Trust—Registered Charity Number
1062229 (DCH 72)
ViRSA has operated for 10 years in its objective
of helping small rural communities to revive or retrieve their
retail outlets through community participation. ViRSA covers all
of England with a network of fieldworkers. The fieldworkers assist
those communities wishing to invest in their own future to follow
a proven path towards providing a social enterprise that meets
the needs of the community and its customers.
1. PART 1. THE
MEANING OF
CHARITY AND
CHARITABLE PURPOSE
The introduction of additional charity heads
is welcomed particularly that under paragraph 3.2 (e)—the
advancement of community development. The introduction of this
head should afford those social enterprises that ViRSA helps to
create the opportunity of being accorded charitable status. What
is more most of these social enterprises are now registered as
Industrial and Provident Societies (IPS) under the classification
of Benefit of the Community, this being proved by the adoption
of "special rules" in to the constitution for the Association.
Any refining definition of "public benefit"
in the Bill must reflect the objectives of the social enterprises
such as those created by ViRSA. For clarity of purpose I consider
the definition needs no further amplification within the Bill.
The re-introduction or retention of services
by the creation of social enterprises also satisfies the charitable
head at 3.2 (j)—relief of those in need etc.
The creation of charitable incorporated or unincorporated
community associations that are able to trade for the benefit
of the community, as a social enterprise would add to the Government's
need to increase the participation of the Voluntary Sector as
a deliverer and provider of rural services.
2. PART 2. CHAPTERS
1 & 2. THE CHARITY
COMMISSION
The reorganization of the Charity Commission
(CC) appears to be a move in the right direction but without more
detailed knowledge of the workings of the CC and the proposals
for improvement, I will not comment further. As a general comment
the public relations aspects of the CC do require a makeover.
I presume the planned "CC open Annual General Meeting at
which to present its report and answer questions" will be
held on a regional basis so that exposure may be to the widest
possible audience.
Registration and Regulation of an increasing
number of charities will of necessity require a "light touch"
approach towards their management. The introduction of broadband
may help in the dissemination of information.
3. PART 2 CHAPS
6 & 7—AUDIT LEVELS
The raising of the income levels for audit thresholds
is welcomed and supported.
4. PART 2 CHAPTER
8—THE CHARITABLE
INCORPORATED ORGANISATION
(CIO)
The proposal to introduce the CIO is the second
most exciting prospect in the Draft Bill (the first being the
increase in the number of charitable heads). The CIO as a vehicle
to disentangle Charity structures from that of companies is to
be welcomed. I assume the CIO will provide enhanced benefits to
that provided by the Company Limited by Guarantee (CLG) including
liability protection for trustees, its own SORP and a simple registration
and accounting procedure.
5. PART 2 CHAPTER
9—CHARITY TRUSTEES
Training for Trustees should be introduced not
as a requirement but as a "beacon standard" similar
to that obtained by duly qualified Parish Council clerks. Chairman
of Boards of Trustees should be encouraged to attain a minimum
standard laid down by the CC.
The proposal that a trustee body may have the
statutory power to pay an individual trustee to provide a service
to a charity (outside their duties as a trustee) if it in charity's
interests to do so appears equitable although some safeguards
against a conflict of interests may be required.
The provision for direct approach to the CC
by Trustees is welcome although interactive facility should also
be implemented with appropriate IT safeguards.
The introduction of conditional payment to Trustees
for particular services not related to their conduct as a Trustee
appears laborious and impracticable in application particularly
in a small charity.
6. PART 3—FUNDING
FOR CHARITIES
The proposal that the Secretary of State fund
particular charities operating in England is welcomed. The challenges
facing fundraisers increases each year due to the parlous state
of funds available though traditional sources.
June 2004
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