Fundraising, Finance and Legal Update

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• Fundraising, Finance and Legal Update

Roly Owers, David Mears Kate Sayer
2

• Fundraising Update -The Latest Developments
• Roly Owers
• Chief Executive
• World Horse Welfare

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Overview

• What is new in fundraising
• is generally very old
• Principles
• People
• Money
• New opportunities

4
Principles

• There is no dark art to fundraising
• People give to people
• Leadership by example
• A compelling case for support
• Investment especially in a recession

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People

• Recruitment of fundraisers
• Motivation of fundraisers
• The potential of volunteers
• Donor expectation

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Money

• Fundraising is about getting a return on your
  investment
• Developing a broad fundraising mix
• Clearly identifying the different benefits from
  varying levels of giving

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New Opportunities

• Major donor fundraising
• New media
• Venture Philanthropy
• Gift Aid
• Collaboration

8

• Legal Update
• David Mears
• RUSSELL-COOKE SOLICITORS
• T 020 8394 6484
• E david.mears_at_russell-cooke.co.uk

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Charity and Company Law Developments

• Charities Act
• Public Benefit
• Payments to Trustees
• Register of Mergers
• Charitable Incorporated Organisation

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Charitable Incorporated Organisation (CIO)

• Incorporated
• Charity
• Registered with Charity Commission
• Trustee to act in the way he decides in good
  faith is most likely to further purposes of CIO
• Also exercise such skill and care as reasonable
  having regard to his special knowledge or
  experience
• Conversion from CLG/IPS/CIC

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Charitable Incorporated Organisation (CIO)

• Duty of member to exercise powers in the way he
  believes in good faith would be most likely to
  further purposes of CIO
• Not available before 1 April 2010
• Single regulator
• Not tried/tested

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Companies Act

• New statutory duties for directors
• Overriding duty to act in the way he considers
  in good faith would be most likely to achieve the
  companys purposes
• Duty to declare interest in existing/proposed
  transactions or arrangements
• Charitable company Board can only authorise
  conflict if Articles permit

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Companies Act (continued)

• AGM
• Company Secretary
• Notice periods
• Proxies
• Written resolutions of members

14
Human Rights Act 1998

• Previous case law charities not covered
• Change in legislation December 2008
• Provision of accommodation with nursing or
  personal care in a care home now covered by
  Human Rights Act

15

• Finance Update
• Kate Sayer
• Partner
• Sayer Vincent

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Finance Update

• Three key areas
• gt Review your reserves policy
• gt Better ways of undertaking risk management
• gt Collaborative working what this means in
  practice

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Components Of Reserves
Finance for expansion and new projects
Designated funds
Funding for specific liabilities or specific risks
Continuity of charitable activity fluctuation
in income
Free reserves
Working capital
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Drivers For Reserves Levels
Funding for specific liabilities or specific risks
How well are risks identified and managed?
Continuity of charitable activity fluctuation
in income
How good is income forecasting how well
diversified the income portfolio? How flexible
are expenditure plans?
Working capital
How well is treasury function managed, cashflow
forecast?
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Risk Management

• Conventional method
• Identify all the risks you can think of
• Rank each risk for likelihood and impact
• Multiply out the risk rating
• Produce a risk register
• Disadvantages?

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Options For New Approaches

• Trustee board focus on strategic risks
• Longer term and external risks
• Reputational risk
• Other major operational risks
• Rank risks for financial impact and reputational
  impact separately
• Explore fewer significant risks in greater detail

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Collaborative Working

• Rewards
• Reach more beneficiaries?
• Additional funding?
• Raise profile and status?
• Develop new areas of work, new skills, build
  knowledge
• Growth
• Greater influence

22
Structure

• Funding grant or contract?
• Trading income or donation?
• Is your charity leading?
• What is relationship to others?
• Where does financial risk lie?
• Flow of funds and timing?
• VAT?

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Managing Risks - During

• Regular monitoring of the relationship is each
  side delivering as promised?
• Maintain due diligence regular review of
  partners watch for takeovers, change in
  management etc
• Plan exit strategy what happens when the
  funding runs out?