UK: Charities Bill - Round-up of Recent Developments

Last Updated: 6 April 2004
Article by Oenone Wright

Originally published April 2004

There is still no date for publication of the eagerly awaited Charities Bill.

Recent Developments

The following is a round up of recent developments of interest to the charity/not-for-profit sector.

Budget/Tax

Gifts of tax repayments

From 6 April 2004 a tax payer can nominate a charity to receive repayments due under his tax return. Only one charity can be chosen to receive the donation and the choice must be made from the Inland Revenue list published on its website. Charities should therefore consider putting themselves forward for inclusion on the list.

The repayments are made under the gift aid scheme with payments being increased in the charity’s hands by an amount equal to the basic rate of tax. A higher rate tax payer is entitled to receive the difference between the basic rate and the higher rate by entering the donation on his self assessment tax return.

Payroll giving

The 10% tax relief top up from the government has now been discontinued but small and medium size firms can receive cash to help set up payroll giving schemes.

Gift Aid on day admissions

The move to scrap this has been postponed to enable consultation to continue until mid-June.

Inland Revenue leaflets on charitable giving

Leaflets on giving to charity by businesses (IR64) and by individuals (IR65) have been updated, as has IR178 on giving land, buildings, shares and securities to charity.

VAT

Churches and sacred places can reclaim the full VAT amount for building repairs until March 2006.

Consultation has been announced to enable VAT to be applied more fairly to land and property used by charities.

Community Amateur Sports Clubs

The corporation tax threshold for registered CASCs is doubled from 1 April 2004. CASCs have some of the benefits of charitable status but with a less stringent application process. They pay no tax on bank or building society interest and no corporation tax on chargeable gains reinvested in the club. Trading income or income from property below certain thresholds are also exempt from corporation tax. As a result of the budget CASCs will be exempt from corporation tax on profits derived from trading, if their trading income is less than £30,000 and on profits derived from property, if their gross property income is less than £20,000.

Fundraising

BUSE Report on Self Regulation

The Institute of Fundraising has rejected the BUSE Report on self regulation as being too complicated. The Charities Aid Foundation is setting up a steering group to take forward the BUSE Commission proposals. CAF is thought to be more objective than the Institute of Fundraising. It is looking to compile a unified voluntary sector response to these recommendations with a view to presenting findings to the Home Office in June.

Charity Commission

On line trustee details

With effect from 1 April 2004 Trustees’ names appear on the Charity Commission website. Trustees who are concerned that this will put them at personal risk can apply for exemption. Trustee information is already available in paper format.

New Incorporation Pack

The Charity Commission has launched a new web-based incorporation pack for charities wishing to become companies. This is a complex area that requires detailed attention to all aspects of a charity’s operations and the Charity Commission’s new more streamlined application process is welcome.

Local Authorities

The government set 1 April 2004 as the target date for all areas to be covered by the Compact between the government and the voluntary sector.

The Compact, although not legally binding, enshrines five fundamental rights as follows:

  • The right to be consulted on new policies that affect charities
  • The right for the impact on the sector to be assessed when developing new policies
  • The right to fair access to funding, including adequate notice of new funding opportunities or changes in funding
  • The right to campaign and comment on government policy even if organisations receive funding from government
  • The right to be properly funded for the work the charity does for the government.

There is a Compact mediation scheme to resolve disputes and there is a new funding code under consultation. The Treasury has recommended that grants and contracts should pay for the full cost of work.

The Charity Commission is encouraging Local Authority grant givers to check whether charities have submitted accounts to the Commission. This is an additional reason to ensure that your accounts are filed by the due date as failure to file on time could jeopardise your funding.

Disability Discrimination Act

On 1 October 2004 the final phase of the Act is implemented and all service providers (i.e. those providing goods and facilities to the public or a section of the public) must ensure that they have made appropriate physical adjustments to premises, subject to a "reasonableness" test. The Act does not define what is "reasonable" but the size and the resources of the service provider will be taken into account. Where adjustments are made to leasehold premises the landlord’s consent will be required and, where the premises are listed buildings, listed buildings consent will also be required.

Employment

In December 2003 legislation came into effect to protect workers from discrimination and harassment at work on grounds of sexual orientation and on grounds of religion or belief.

On 1 February 2004 the maximum amount of a week’s pay for unfair dismissal/redundancy calculations was increased from £260 to £270. The maximum compensatory award for unfair dismissals was increased from £53,500 to £55,000 on the same date.

On 4 April 2004 the standard rate of statutory maternity pay, statutory adoption pay and statutory paternity pay increased from £100 per week to £102.80 per week.

In October 2004 the national minimum wage increases for adults (aged 22 and over) to £4.85 per hour, the development rate (18 to 21 year olds) increases to £4.10 per hour and a new rate for 16 and 17 year olds is introduced at £3 per hour.

Volunteering

The Promotion of Volunteering Bill, a private member’s bill to address the concern that volunteers are put off by the fear of litigation, has received its second reading. The Bill, which aims to protect volunteers, allows them to ask for a signed "statement of inherent risk" from service and activity users. Although this does not absolve the volunteer from liability the statement will be considered in the event of negligence claims and other litigation. What remains to be seen is whether the Bill’s aims can be achieved without excessive bureaucracy being imposed on all concerned.

A Commission is being established to devise a national youth volunteering strategy and government funds will be made available to encourage and extend mentoring of and national community service by young people.

Dormant Bank Deposits

The government has announced its intention to seize dormant bank deposits and to use them to tackle social exclusion and the Balance Charitable Foundation was launched in March to help persuade financial institutions to release unclaimed assets. The Foundation intends to consult with voluntary sector umbrella bodies and financial institutions in May.

© RadcliffesLeBrasseur

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.