Not for profit enews - May 2011
Welcome to our monthly e-newsletter - designed to keep you informed of the latest news for charities, voluntary organisations, small businesses and individuals. We hope you will find it useful - suggestions are always welcomed. Do let us know if your email contact details are incorrect, and please contact us if you have any questions. Remember, we're here to help.
Contents
- Voluntary Sector Finance
- Voluntary Sector Governance
- Other News
Voluntary Sector Finance
Potential consultation on EU VAT exemption for charities sharing costs
According to David Gauke, secretary to the Treasury, the government is looking into opening a consultation on the tax treatment of charities sharing back-office services. The consultation is part of government plans "to examine ways of ensuring that VAT does not act as a barrier to the reform of public services", says Gauke.
A spokesman for the Charity Tax Group (CTG) said: "CTG has been working on this issue for many years. The cost-sharing exemption could be very beneficial to particular charities that are currently restricted from sharing services because of existing VAT barriers. We will continue to work with the government’s consultation team and push for a swift implementation of this mandatory exemption."
Voluntary Sector Governance
Creating co-ops or social enterprises from public services
A review of how Spain, Italy and Sweden have created an environment in which public service co-operatives have flourished finds that the UK is not yet equipped to turn public services into mutuals. The press release from Co-operatives UK, which commissioned the review, provides further details. In a separate press release, Co-operatives UK comments on their guidance which provides advice to public sector workers on how to spin off their work as a co-operative. It covers the journey from learning about the benefits and risks of "spinning out" to taking practical steps to set up an independent enterprise.
NVCO President on reducing red tape for Civil Society organisations
Lord Hodgson, President of the National Council for Voluntary Organisations (NVCO), has released a Task Force report, entitled ‘Unshackling Good Neighbours’. It explores how bureaucracy can be diminished for voluntary organisations, social enterprises, and small charities.
The report pinpoints a number of barriers that work against people wanting to offer their time and money to civil society, and includes recommendations on reducing red tape. These include alterations to legislation, prominently advertising volunteering information in Jobcentres, and stressing that volunteering does not affect a person’s entitlement to benefits.
Charity Commission guidance on Charitable Incorporated Organisation status
The Charity Commission has recently released its guidance on the Charitable Incorporated Organisation (CIO) structure. The structure was newly created by the 2006 Charities Act and is an incorporated form of charity, but is not a company. Benefits of the status include the CIO being able to enter into contracts in its own right and trustees having limited or no liability for the CIO’s debt. There is still no firm information when charities will be able to start registering as CIO’s.
Other News
Social Enterprise Coalition work programme on children/youth sector
Our client, the Social Enterprise Coalition, has launched a new work programme, aimed at sharing and supporting best practice models in the children and young people’s sector. As part of a strategic partnership, led by Children England and funded by the Department for Education, it looks to provide guidance, and events and surgeries to meet the needs of social enterprises and voluntary organisations. It asked relevant members of the sector to complete a short survey, in order to help it gauge and tailor its programme to the needs of the sector.
Official code of practice on sharing of personal data
The Information Commissioner's Office has published its new 'Data sharing code of practice' written in general terms to provide "a framework for organisations to make good quality decisions" about the sharing of personal data. The introduction states that sharing is more about different types of disclosure, and often involves many organisations and very complex information chains. This news article on Out-law.com highlights some of the areas covered by the Code.
The Big Society Bank gets government go-ahead
Skeletal proposals for the development of a Big Society Bank have been agreed by the Coalition government. Before it becomes operational, the Bank needs State Aid approval from the European Commission and Financial Services Authority authorisation in order to act as a wholesale investor for social investment. In the meantime, an interim Investment Committee is to be set up by the Big Lottery Fund, so that investments can begin this summer.
The Bank has been welcomed by the Social Enterprise Coalition (SEC) as a start, but the SEC argues that mainstream investment will still be needed if social enterprise is to have a noticeable effect. It also calls for social enterprise leaders to be involved in the governance of the Bank.
Contact us
To discuss your charity accounting needs, please contact a member of our Not for Profit sector team, email charities@mhllp.co.uk or send us an enquiry online.
