SMALL CHARITIES COALITION - Manifesto

As a board member of the SCC I thought you'd like to read and hopefully comment on our top recommendations for the 2010 general election

Introduction
The Small Charities Coalition exists to help small charities access the skills, experience and resources they need to achieve their aims.

We know from our own experience that many small charities suffer from a chronic lack of resources, skills and expertise, despite having an abundance of passion and commitment. The Small Charities Coalition is like a voluntary sector matchmaking service, matching small charities with other organisations that have the skills, experience, and in some cases resources, that the small charity lacks.

The Small Charities Coalition is about helping small charities to help themselves, and enable them to have access to the considerable expertise of their larger counterparts in the charitable sector or those from other sectors.

Our services include:
• Matchmaking small charities with other organisations to increase resources or improve knowledge and skills;
• Providing support, guidance, encouragement, advice and information to small charities;
• Presenting personal and vocational development opportunities for individuals who volunteer to help small charities; and
• Offering a resource for small charities to get their voices heard within the media and Government.

Manifesto Recommendations

Advice and support
HM Revenue & Customs and the Charity Commission should develop a section on their websites specifically for small charities.
Our recent survey of small charities found that around a third of respondents believed that HMRC information on tax issues is too complex and technical to understand; and a third did not know what requirements do or do not apply to them. In addition, although many respondents found HMRC’s and the Charity Commission’s websites helpful, it was not always easy to locate the relevant information. Currently a lot of guidance is written with larger charities in mind. However, it is often the case that different rules apply to small charities. Furthermore, many smaller charities are run exclusively by volunteers without the funds to engage legal or accountancy professionals. We believe that HMRC and the Charity Commission should jointly create a specific online portal dedicated to small charities, including step by step guides written in plain English.

HM Revenue & Customs and the Charity Commission should retain and expand their telephone services.
The Small Charities Coalition welcomes online developments by the Charity Commission and HM Revenue & Customs. However, we also stress that many small charities do not have easy access to the internet and will face increasing difficulties if the internet becomes the preferred or sole channel of service delivery. We believe that HMRC and the Charity Commission should jointly create a bespoke telephone service for small charities, including tax, fundraising and other regulatory advice.

Deregulation of small charities
More charities should benefit from the lighter regulation enjoyed by ‘small charity’ status.
At the moment there are around 100,000 ‘small charities’ with a gross annual income of less than £10,000 who benefit from less onerous reporting requirements. In particular:
(a) small charities are not required to complete an Annual Return (although they must inform the Charity Commission if any changes to the charity’s details, including income and expenditure.
(b) if the charity’s income does not exceed £25,000, the trustees are not required to file their Trustees’ Annual Report (although they must complete it and make it available); and
(c) small charities can prepare ‘receipts and payments’ accounts (rather than more complex accrual accounts) and these need not be audited.

We believe that these thresholds should be raised so that more charities benefit from lighter regulation. It would also be beneficial for small charities to ensure that the monitoring thresholds are co-ordinated and aligned across the UK jurisdictions.

Public consultations should consider the regulatory impact on small charities
In recognition of the role of small charities within the Third Sector, public consultations should consider the impact of any proposal on small charities and not just larger ones. After all, continuing change has a disproportionate impact upon smaller charities.

VAT
Simplify the rules; The current VAT rules for charities are extremely complex and reform is long overdue.
Encourage collaboration by exempting shared services. Currently, charities which charge each other for shared services currently have to pay VAT. This often ends up costing more than simply working separately. We therefore support proposals to exempt this form of cost-sharing from VAT. This will encourage greater collaboration between charities.

Gift Aid
Simplify the Gift Aid rules
We support the simplification of rules for Gift Aid and the further promotion of its use. We also believe that an individual’s donation should be Gift Aided unless expressly stated. This would make a larger number of donations tax-efficient and increase charities’ income. These proposals are also supported by NCVO.

Extend the transitional relief
We propose to extend the transitional relief beyond the current end date of April 2011. This is in the hope the end of transitional relief will coincide with the implementation of Gift Aid reforms. This proposal is also support by the Institute of Fundraising.

Trading
Raise the limit on the small charities’ trading exemption
We call on the Government to raise the small charities’ trading exemption from the current limit of £50,000 to £250,000. This would give charities greater flexibility and obviate the need to create a subsidiary. This proposal is also supported by the Charity Finance Directors’ Group.

Treat sponsorship and advertising the charity’s work as primary purpose trading
We support calls to treat as primary purpose trading (a) sponsorship where it is directly related to charitable purposes and (b) advertising that supports the charity’s charitable activities. Many charities give corporate donors recognition for their sponsorship of an activity or event. However, this can have adverse tax implications for the charity if appropriate arrangements are not put in place. In particular, if HMRC believes that the substance of the relationship involves the charity providing advertising services, its sponsorship income will be treated as trading income. If the level of sponsorship takes the charity over the threshold of the small charities’ trading exemption, the charity would need to divert the sponsorship income through a trading subsidiary. We believe that donations currently treated as taxable sponsorship should be reclassed as primary purpose trading so that charities are not forced needlessly to establish a trading company to receive them. This is cumbersome, expensive and serves no useful purpose. In the same way, advertising income should also be reclassed as primary purpose trading if it is revenue that supports the charity’s charitable activities. These proposals are also supported by the Charity Finance Directors’ Group

Recognising volunteering
We support NCVO’s proposals to formally recognise the importance of volunteering.
Introduce a bank holiday dedicated to volunteering.
We believe that a bank holiday dedicated to celebrating the voluntary sector and recognising its role in society would encourage greater participation and build community.

Give employees a right to take five days’ paid leave for voluntary work
We believe that employees should have a right to take additional paid leave for voluntary work. We believe this will particularly benefit smaller charities which foten do not have the resources to pay for staff.

Easter Message

‘The thief comes only to steal and kill and destroy; I came that they may have life, and have it abundantly.’ John 10 verse 10

Spring time is my favourite time of the year! Having just endured one of the coldest winters in the UK for over 30 years, the blue skies and the spring sunshine are such a welcome sight, well they would have been if they had stayed! Our garden, like many, throughout winter looked so dark, dull and lifeless. But now with the onset of spring, it is exploding into new life with a beautiful array of colourful plants and fragrant flowers. Although I found myself mowing the lawn in the rain this morning!

At Easter we celebrate the death, burial and resurrection of Jesus Christ! God’s Son could not be contained in a cold dark tomb. Jesus rose again on the third day, conquering sin, Satan and death once and for all (as he promised he would), making it possible for you and me to celebrate the truth and power of Easter every day and to have the assurance of eternal life.

‘We live and die; Christ died and lived!’ I can't remember which Theologian said this but it sums it up perfectly,

The Importance of Corporate Social Responsibility for SMEs

Small to medium-sized business (fewer than 250 employees) account for about 90% of businesses worldwide and are responsible for 50-60% of employment. As such, they play a fundamental role in society and can potentially have a huge impact on social welfare.

I find it surprising, therefore, that corporate social responsibility (CSR) initiatives, so far, have tended to focus on large companies and multinationals. As SMEs have stakeholders and an impact on society, the concept of CSR is just as valid for small companies, as for large companies.

Many SMEs may be doing CSR in some way or form, but don’t call it “CSR” as such. For example, they may provide excellent goods and services; they may be great employers, engaging with their employees and other stakeholders; they may be alert to health and safety issues in the workplace and for customers, or they may be attempting to operate sustainably and minimise their use of natural resources. All of these things are examples of socially responsible behaviour but are not labelled as such by many small and medium sized businesses.

Staffing is often a critical element in the success of a small business. It is true in any business but employees in a small business are often a critical resource for the business’s success and prosperity. As such, many small and medium-sized businesses place emphasis on increasing employee skills and work on motivating and building staff morale. Much of SMEs’ social, community and environmental initiatives are therefore driven by, or focused on employee engagement and development.

Some of the barriers for SMEs in becoming involved in corporate social responsibility include; 

• the cost of implementing CSR activities when survival is often the greatest economic imperative;
• time and resource constraints which may mean a lack of affordable external support and resources; 
• a lack of awareness of the business benefits with no/little understanding of the business case for small and medium-sized enterprises; 
• the fact that existing CSR tools and guidelines are mainly geared towards large business;

On the other hand, there are a number of things which could encourage CSR in small business. Most importantly there is the ability to attract and retain valued employees. A characteristic of small businesses is that their success is largely dependent on a handful of key employees. Other things include the ability to develop unique selling propositions and competitive benefits through their products and services; cost and efficiency savings and enhanced reputation. 

One of the problems that SMEs face when seeking to address CSR issues is that many of the tools are designed for big business. Initiatives aimed at encouraging SME involvement in CSR need to be easily accessible and relevant. The advice needs to be tailored to them with easy-to-use tools and case studies that make it real and provide encouragement to SMEs. If small businesses can see examples of specific initiatives that have increased profitability and improved the business they will be more likely themselves to adopt CSR strategies. I think charities could work with channels known and trusted by SMEs such as industry associations to ensure that information, guidance and partnerships are available.

Charities working in partnership with business

The following is the text from an article in the Southampton Echo:

In this time of economic pressure both charities and the companies who support them are looking for ways to work smarter and to ensure that the money is well spent.

Peter Robertson of Condor Office Solutions is keen to help charities to work together to maximise their fundraising events. Peter, who is also Vice President of the Chamber of Commerce, said “I’m delighted to see local charities taking the opportunity to work closer to the business community”.
D’Arcy Myers, CEO of Wessex Heartbeat, is a prominent member of the not-for-profit community and is out spoken about the need for charities to be the best possible stewards of the monies gifted to them. As a board member he explained about the Small Charities Coalition and called for local charities to form a consortium to better promote their work and the benefits of support. He said “Where charities can work together they should, supporters want to see real impact for the money they give”. Peter Robertson along with James Hiley-Jones of Careys Manor and the Montague Arms provided a congenial setting and superb lunch to a dozen of the most proactive charities in Southampton and seventeen local businesses, enabling them to discuss ideas and ensure that the maximum benefit is derived from people’s generous support.

There was much interest in the Small Charites Coalition which exists to help small charities access the skills, experience and resources they need to achive their aims. The Coalition is like a voluntary sector matchmaking service, matching charities with other organisations that have the skills that that the charity lacks.

St Patrick's Day Blessing

On this St Patrick's day I have this blessing by an unknown author for you all. I hope you will find time to raise a glass of the black stuff ( you have dispensation from your Lent abstinence ).

I wish you not a path devoid of clouds,

Nor a life on a bed or roses.

Nor, that you might never need regret,

Nor that you should never feel pain.

No, this is not my wish for you. My wish for you is:

That you might be brave in times of trial

When other's lay crosses upon your shoulders.

When mountains must be climbed and chasms crossed,

When hope scarce shines through.

When every gift God gave you might grow along with you,

And let you give the gift of joy to all who care for you.

That you might always have a friend who is worth that name.

Whom you can trust.

And hope will be, in times of sadness,

Who will defy the storms of life by your side.

One more wish for you:

That in every hour of joy and pain, you may be close to God.

This is my wish for you and those who are close to you.

This is my hope for you, now and forever.

Charities working together to strengthen trustee boards

Developing a coherent and effective Trustee board is an ever evolving challenge. It goes hand in glove with the need for leaders to constantly challenge their standards. After all a Trustee board is only as strong as its component parts. Effective boards have a mature understanding of the skills and experience of their members and seek to fill gaps as soon as they are identified. However, in my experience some charities have difficulty in recruiting from outside their personal pool of contacts and therefore often end up with an ever narrower view of themselves and the outside world. If the charity is located outside the capital this problem is even greater.


A strategy to minimise trustee clones would be for charities in the same geographical area to work together in establishing a “Trustee Recruitment and Retention Committee”, I’m sure that there is a snappier title! The committee could;

• Create a pool of available trustees to fill vacancies promptly as they arise;
• Develop links with local business, professional bodies, community groups and other partners to promote charity trusteeship;
• Present awareness sessions for local people or companies who are interested in serving as trustees;
• Develop and share best practise templates;
• Provide briefings to potential trustees candidates whilst their application is being processed;
• Provide a local induction programme for new trustees;
• Facilitate a forum for trustees to meet and collectively discuss issues that are relevant to all trustees.

As this would be done as a collective of charities, approaches to potential trustees would be seen to be none charity specific and focused on the benefits offered to both the individual and company. For example; local accountancy firms could be approached outlining the professional personal development opportunities for staff and the corporate social responsibility achievements for the company. This would also have the benefit of cutting down repeat requests from multiple charities.

Once a firm, group or individual decides to become a charity trustee they would be able to select the charities that most interest them and be matched to the charities needs. An example of this could be an accountant who is interested in working for a health charity being able to choose between a number of health charities that need a Treasurer.

Recently I was reminded of a maxim that "as a leader your lowest standard is the highest others will aspire to".

Trustees from Beyond the Boundaries

Recently I attended the TrusteeWorks first sector event hosted by the Clothworkers’ Company which challenged the often voiced view that recruiting trustees is difficult.

The follow-up from the event makes for interesting reading;

The panel debate discussed three questions that sought to challenge the boundaries trustees and boards can impose when looking for great trustees. Key points that drew further discussion included the challenge that, as boards, we spend too much time looking backwards not forwards. We also talked about sustainability, which limits us to be the organisation we are now where resilience is a more relevant focus, becoming the organisation we need to be. Less than 1% of trustees are under 30 and yet these are talented people like any other trustee, they just happen to be young.

Leadership by a board is critical. The panel recognised the challenge of leading as a group and understanding the difference between leading and managing, the board’s role and the staff role. Compared to the private sector, the voluntary sector has been slow to undertake proper board development and review.

Compelling improvements identified included the need to introduce new talent, to recognise the value of difference and diversity on a board as well as understanding risk and how to manage it, rather than be controlled by it, and the need to actively consider and act on the need to change to thrive.

‘Effective organisations have a restless search for improvement’  – quoting Michael Barbour

The table discussions looked at 7 questions across 13 tables and some creative and lengthy discussions continued into the networking and drinks. Highlights from the discussions include a sense that trustees can be overvalued especially in relation to status, i.e. the “great and good” and the value of the board as an entity can be under recognised. Being able to understand and represent the community being served is important but over representation by users and not enough recognition of skills, business experience and decision making create real barriers to success. Younger people have a lot to offer especially in this digital age, it is our problem to recognise, understand and include them not theirs. Private sector experience was recognised as valuable and bringing key skills, more needs to be done, consciously, to integrate people with differing backgrounds on a board.

The use of skills audits, self administered or with out side support was echoed across a number of tables where the need for self review, external governance support, succession planning, board development and time for the board to know each other as people as well as the task of being trustee was highlighted. Being a trustee can and should be fun, it should add value to the individual, it may be great personal development, build CVs, allow them to be part of a team or social environment. The motivations of trustees are not uniform, recognising and allowing different motivations was seen as a key way to cross recruitment boundaries. To read the speaker and table notes in full, http://ctt-news.org/72Y-3NGG-1D37XJ-21QUS-1/c.aspx.

The evening supported the TrusteeWorks suggestion that attitude and approach can be two boundaries to successful recruitment.

To add to the debate, email trusteeworks@reachskills.org.uk

To find out more about TrusteeWorks, visit the website http://www.trusteeworks.org.uk/