DCH 118 Virsa
Educational Trust
Memo
To:
scrutiny@parliament.uk
Francene Graham, Committee Assistant, Scrutiny
Room, Room G10, 7 Millbank, London SW1P 3JA
From:
ViRSA Educational Trust
Date:
7/19/2004
Re:
Submission on the DRAFT Charities Bill
Submission from the Village Retail
Services Association
ViRSA Educational Trust - Registered
Charity Number 1062229
Compiled by Peter Jones - Director
ViRSA
17th June 2004
ViRSA has operated for ten 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 One. 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 Two. 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
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