BULLETIN No. 172: March 2018

My monthly attempt to keep my contacts, friends, friends of friends, etc. in touch with what's going on in the world of charities. A distillation of the many briefings that arrive on my desk, plus whatever I've gleaned from charities I'm currently working with. Always glad to get your comments and suggestions, and requests for help.

Daryl Martin

d.martin@afvs.org.uk

What do we have this month?

1. Data Protection (GDPR) Update
2. Charity Commission Funding
3. Making Tax Digital (MTD)
4. Charity Commission Enquiries
5. Independent Examination Tests Strengthened
6. Take Care Using Public WiFi Networks
7. Sending Funds Abroad
8. Trustee Appraisals
9. Trustees Claiming Expenses
10. Charity Commission Budget
11. Online Learning
12. CC Report on The Friends of Blencathra 13. How Can we Help You?
14. And Finally...

1. Data Protection (GDPR) Update
Several training sessions later we’re beginning to see what the issues are. The questions come thick and fast from ‘how long should we keep e-mails for?’ to ‘how do we deal with data stored on mobile phones?’ moreover, ‘what if we aren’t fully compliant by the May deadline?’ All serious issues which we deal with simple, effective help.

Charities, churches, in particular, are either ignoring it or making too much of it. There’s still plenty of time.

We’re planning further GDPR courses in different locations. Ask Becky if you want information on them. We also have the on-line courses. The 2 hour on line course is available at www.bowringandjazz.com/ It’s important that everyone in your organisation is aware of the issues around GDPR and this course is highly recommended.

We’re getting a lot of questions coming up; I plan to put them together into a separate bulletin, to spare all the people who are getting really fed up with all this emphasis on GDPR.

2. Charity Commission Funding
Following my comments last month, Ian Chisnall sent me a copy of his blog on the subject. It’s hard hitting, accusing the government of stealing charitable funds. I try to avoid being political, but it does seem there’s a case to answer. Have a read and see what you think: https://ianchisnall.wordpress.com/2018/01/29/this-government-intends-to-rob-charities/

3. Making Tax Digital (MTD)
From 1 April 2019, all VAT registered organisations with a taxable turnover exceeding £85k have to join MTD. This will include charities of course. I recommend you sign up to MTD this year. This will give you time to work through the issues, and also avoids a massive rush in March next year. The major issue is to determine whether accounting software is compliant. Your accountant will take care of this, but let me know if you need our help. (This note came from Les Howard our charity VAT specialist, always on hand to help where needed.)

4. Charity Commission Enquiries
I just looked at a set of accounts of an animal rescue charity. Income over £140,000; no independent examination. Accounts poorly prepared. No excuse for this at all. No wonder the CC is looking into it. If your accounts are not in order don’t leave it, get them attended to. Some hundreds of charities completing their online return have reported that their accounts are qualified when they clearly aren’t. I’ve mentioned this before. If this is you, either take more care or get your accountant to help you. Moreover, don’t forget to report any serious incidents. If you need help email me or look at this link: https://www.gov.uk/guidance/prepare-a-charity-annual-return?

5. Independent Examination Tests Strengthened
The Charity Commission complained that three quarters of charity auditors sampled were in breach of strengthened regulations. I wonder how many independent examiners have picked up on their additional requirements:

• Direction 2: examiners must check for any conflicts of interest that may prevent them from carrying out the independent examination (This means for example that an examiner who does the bookkeeping cannot do the IE
• Direction 7 requires examiners to check that related party transactions in ‘SORP accounts’ are properly disclosed
• Direction 9 requires examiners to check whether the trustees have made an assessment of the charity’s position as a going concern

Let me know if you need help in any of these areas.

6. Take Care Using Public Wifi Networks
I do a lot of travelling, and most weeks I spend time in hotels or coffee shops checking my e-mails. Remember though that using free, public Wi-Fi networks comes with serious security risks. To minimise the chance of having your money or financial information stolen, follow these steps. First, if you’re on public Wi-Fi, don’t shop online, log in to your financial institution, or access other sensitive sites. Use a Virtual Private Network, or VPN, to create a network-within-a-network, keeping everything you do encrypted. For sensitive sites, set up two-factor authentication, so even if hackers steal the passwords to your bank, social media, or email, they won’t be able to log in. And turn off the automatic Wi-Fi connectivity feature on your phone so that it won’t automatically seek out hotspots. Most important, remind yourself that even a few moments of online convenience are far outweighed by the risks of having your personal information compromised. (Thanks to Harvard Business Review and Luke Bencie for this one.)

7. Sending Funds Abroad
Had a call for help from a charity. They wanted to send money to a charity in India (up to £100,000) but were finding it really difficult to get the funds moved over. I discussed the issues with a contact who’s had many years experience in this area. He agreed it was getting harder to get funds across to India and elsewhere. Unfortunately, he didn’t offer any solutions. Much of it seems to depend on contacts on the ground and their connections. Do any of my readers have experience in this, or suggestions who we can go to for advice?

8. Trustee Appraisals
My instinct is to shy away from appraisals on the basis that discussions about positives and negatives should be an ongoing part of any business relationship; you shouldn’t have to wait until the end of the year to talk about performance issues. Let me say now very clearly that no good will come of not carrying out regular performance appraisals. You will need to find an effective means of carrying out appraisals. I’ve prepared a briefing on the subject which you will find helpful. Email me for a copy.

9. Trustees Claiming Expenses
I wrote a policy briefing last month on this subject. The Charity Commission has issued excellent guidance on the subject; this briefing encapsulates their guidance and supplements it, covering areas like entertainment and paying for childcare. Let me know if you’d find a copy helpful.

10. Trustee Training
My diary is getting pretty full. I can squeeze in a few more up to the summer, but I’m beginning to cast around for people who can work with me on delivering high quality training material (Currently mainly Trustee training and Data Protection) in different parts of the country.

11. Online Learning
The online learning courses I’ve been telling you about are now live. My first course is ‘All About Trustees’. It’s in 3 parts. There’s also a small course on Charity Trading, and of course the 10 hour GDPR course. The 2 hour GDPR Awareness course is also now live. We’re able to offer discounts on these courses to members so let Becky know before you sign up. www.bowringandjazz.com

12. CC Report on The Friends of Blencathra
This charity was set up with the best of intentions but perhaps not a great deal of considered planning and forethought. The idea was to buy a piece of mountain in the Lake District to safeguard it for future generations to enjoy. In the event, they couldn’t raise the money, and there was opposition to the proposal. The Regulator looked into it in detail and came out with a report that makes good reading. https://www.gov.uk/government/publications/charity-case-report-the-friends-of-blencathra-ltd

13. How Can we Help You?
The list of our support services gets ever longer:

All Aspects of Accounts including Yearend and Bookkeeping
Migration to Xero and QuickBooks Online
Mentoring
VAT Advice
Outsourcing (Book-keeping, Virtual FD, Gift Aid etc.)
Data Protection (GDPR) Compliance
HR Support
Legal Advice
Trading Issues (including Charity Shops)
Community Halls
Fundraising: Reviewing, Advising, Mentoring, Bid Writing
Training, Including Online Learning
General Advice and Consultancy
Extensive Library of Briefings and Policy Templates

Contact us if you need help in any of these areas.

14. And Finally...

Every day I’m in touch with remarkable people, doing so much amazing stuff, giving themselves to the communities they serve so faithfully. Yet often they carry their own burdens without any bitterness or complaint. I stand in awe of them. I dedicate this gentle prayer from Christine Sine to Diana, patiently awaiting surgery. Go well Diana, we hold you in our prayers. Let’s all slow down and take a little time to allow it to resonate deep within.

Thank you for your encouraging messages. We look forward to hearing from you with your questions, your suggestions, your requests for help and advice. Go well.

If you find this bulletin helpful, could you take a moment to pass it onto others who might appreciate it.

Daryl Martin