Charity Seminar Guidance

By Your Side. On Your Sidewww.thomaswestcottcfp.co.uk
Welcome to the Thomas Westcott Charity
Seminar 2018

Axminster · Barnstaple · Bideford · Bridgwater · Burnham on Sea · Crediton · Exeter · Holsworthy · Honiton · Ilfracombe
· Okehampton · Plymouth · Seaton · Somerton · Tiverton · Torquay · Weston super Mare

Important Information
This presentation is for information only and does not constitute investment or taxation advice. We will be
happy to provide bespoke on an individual basis to suit your or your organisation’s circumstances. The
intended audience for this presentation is the Thomas Westcott annual charity seminar 21st November 2018.
The information presented is based on our understanding of current taxation and other legislation which is
subject to change.
Past performance is not a guide to future performance.
The value of investments and any income from them is not guaranteed and may fall as well as rise. You may
not get back the full amount invested.
Thomas Westcott Chartered Financial Planners is not responsible for any advice or information provided by
third parties.
Thomas Westcott Chartered Financial Planners is the trading style of Thomas Westcott Financial
Management Ltd which is registered in England and Wales Company No. 4342122.
Thomas Westcott Financial Management Limited is authorised and regulated by the Financial Conduct
Authority FCA Register Number 677869.

Thomas Westcott Chartered Financial Planners
• The financial planning arm of the Thomas Westcott Group
• Independent Financial Advisers
• Awarded Corporate Chartered Status
• Access to team members with SOLLA and STEP accreditation
• We devise financial planning and investment strategies for private
clients, trustees, charities, attorneys and deputies

• CC14 and Trustee Investment Responsibilities
• Investment policies
• Ethical investment considerations
• How we can help you in these areas
On today’s agenda

CC14
and
Trustees’ Investment Responsibilities

Trustees’ Investment Responsibilities (CC14)
Two main types of ‘investment’ as described by the Charity Commission
• Programme related investment
Capital deployed to further the charity’s aims alongside achieving a
financial return
• Financial investment
To achieve the best possible return for the charity within an accepted risk
parameter

Trustees’ Responsibilities (CC14)
Some key legal guidelines and requirements for ‘financial investments’
• Exercise care and skill when making investment decisions
• Select investments that are right for their charity
• Diversify your charitable investments
• Obtain investment advice if necessary
• Review investments periodically
• Decide on the overall investment policy in line with the charitable objectives
• Decide on whether or not to adopt an investment ethical approach

Does your charity already hold
‘financial investments’?

Example Charitable Investment

Do you have, or when did you last
review your charity’s investment policy?

Investment Policies
What should go into an investment policy?
• Investment objectives
• Scope of the charity’s investment powers
• Risk profile
• Time horizon
• Liquidity needs
• Ethical considerations in line with the charity’s aims and objectives
• Reporting and Monitoring
• Investment Management Rules

Investment Policies – Ethical Considerations
• What are your charitable aims and objectives?
• What areas of investment would conflict with these objectives?
• What would your donors/stakeholders/beneficiaries expect?
• How do you wish to be represented in the press?
• Consider your charity’s reputation and standing in the community
A well-drafted and well-executed investment and ethical policy could be one of
the best marketing tools available to your charity in 2018

What have I covered today?
• CC14 and Trustee Investment Responsibilities
• Why do charities invest
• Investment policies
• Ethical investment considerations

How we can help you
• Demonstrate and defend your objectivity to the charity commission
Independent investment reviews of your charitable investments
We can also help you negotiate more competitive fees
• Help you develop and or update your investment policy for 2018
Public scrutiny of charities has never been higher
• Advise you on creating, or reviewing your ethical criteria
Benchmark and measure your existing charitable investments against your
ethical criteria
We offer a free initial consultation, we would be pleased to meet with you.

Important Information:
This presentation is for information only and does not constitute investment or taxation advice. We will be
happy to provide bespoke on an individual basis to suit your or your organisation’s circumstances. The
intended audience for this presentation is the Thomas Westcott annual charity seminar 21st November 2018.
The information presented is based on our understanding of current taxation and other legislation which is
subject to change.
Past performance is not a guide to future performance.
The value of investments and any income from them is not guaranteed and may fall as well as rise. You may
not get back the full amount invested.
Thomas Westcott Chartered Financial Planners is not responsible for any advice or information provided by
third parties.
Thomas Westcott Chartered Financial Planners is the trading style of Thomas Westcott Financial
Management Ltd which is registered in England and Wales Company No. 4342122.
Thomas Westcott Financial Management Limited is authorised and regulated by the Financial
Conduct Authority FCA Register Number 677869.

THANK
YOU
“The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take
professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or
refraining from acting, as a result of this material.”

A talk by Angus McNicol of
Wessex Charity Consultants

 The advantages and disadvantages of such a career
move;
 Talk about my main area of activity which is helping
charities to find Trustees and achieve a well run Board
and I will provide an example of what is now a reasonably
well balanced effective Board at WESC Foundation where I
am a Trustee.
 Talk about a new charity that I have helped found which
was registered in December 2016 which is a
collaboration between three complementary
organizations.

Personality traits/skillsets that I would want to see in the
Trustees that I recruit for Charities:
● Skill base to include an Accountant type, a Lawyer, a person with sound business
experience and a PR/Marketing expert.
● In addition, skills to support the type of charity which might include background in
Care/Education/Medicine plus potentially a user of your services including a
Parent. Other skills like Land Agent/Surveyor depending on type of charity.
● In general people who listen rather than broadcast their views.
● People who are prepared to ask thoughtful probing questions, but in a friendly
manner thereby being skilled enough to follow up the questions to achieve clear
answers.
● A diverse Board in every way.
● Let the Chair emerge from the Board rather than trying to appoint an outside
Chair.
● Trustees to serve no more than three terms of three years.

https://www.youtube.com/watch?v=rAuSHWaTsxM

 Stress issues/possible career changes.
 Helping you find trustees.
 Governance issues.
 Setting up a new charity
Contact me on: 0798 062 3659
angusmmcnicol@gmail.com
I am always happy to meet for coffee on a no obligation basis.

By Your Side. On Your Sidewww.thomaswestcott.co.uk
Questions and Coffee Break

The Trustees’ Annual Report
• Purpose
• Responsibilities
• Legal requirement – small and large charities
• Advantages of providing additional information
• The new Governance Code
• How can Thomas Westcott help?
• Question

Purpose
“to ensure it is publicly accountable to its stakeholders for
the stewardship and management of the funds it hold on
trust”
Stakeholders include funders, donors, members, financial supporters, credit
lenders, beneficiaries, customers and service users, employees, other
charities that you collaborate with and the local community.

Tell the charity’s story

Impact
Achievements

Responsibility
…rests with the Trustees

Legal Duties
• Act in the charity’s best interests
• Manage the charity’s resources responsibly
• Act with reasonable care and skill

- for small and large charities

What information should the
Trustees’ Report contain?

Requirements
• Objectives and Activities
• Achievements and Performance
• Financial Review
• Plans for future periods
• Structure, Governance and Management
• Reference and Administrative Detail
• Funds held as custodian trustee on behalf of others

Legal requirements - for small and
large charities
Responsibility rests with the trustees (although can seek assistance from charity
staff and advisors)
Must state it is the Trustees’ Report and identify the reporting period
Must be signed and dated by a trustee
Trustees of charitable companies must also prepare a directors report that
complies with company law (this can be combined with the Trustee’s Report)
Parent charity’s preparing consolidated accounts must include relevant
information about their subsidiary undertakings

Advantages of providing additional
information

The Charity Governance Code for smaller
charities

Top Tips
• Structure it well – avoid large paragraphs
• Don’t make it too long
• Avoid acronyms and technical jargon
• Use bullet points, tables and pictures
• Don’t forget to thank the volunteers!
• Get the tone right – focus on the overarching message

How can Thomas Westcott
help?

Thank you
“The content of this presentation has been prepared as a guide to topics of current financial business interest. We strongly recommend you take
professional advice before making decisions on matters discussed within. We can accept no responsibility for any loss to any person acting, or
refraining from acting, as a result of this material.”

Governance Update
To aid the charity in the pursuit of its objectives

Governance update
Think & Question
Be Informed
Take Advice
Use the minutes

Safeguarding
https://www.gov.uk/guidance/safeguarding-duties-for-charity-trustees

Safeguarding
• Policies and procedures
• Actually use them
• Review them
• Make them available

Safeguarding
“If things go wrong we will check if you followed this
guidance and the law”

Disqualification
https://www.gov.uk/guidance/automatic-disqualification-rules-for-charity-
trustees-and-charity-senior-positions

Disqualification
• Unspent convictions
• Sex offenders register
• Bankruptcy or IVA
• Disqualified director
• Designated person under anti-terrorism laws

Disqualification
• Signed declarations – before
• Signed declarations – after
• DBS checks
• Contracts

Conclusions

Charity Trading
Old Rules Total income under £20,000 – trading income £5000
Total income £20,000 - £200,000 – trading income 25%
Total income over £200,000 - trading income £50,000
New Rules Total income under £32,000 – trading income £8,000
Total income £32,000 - £320,000 – trading income 25%
Total income over £320,000 – trading income £80,000
Gift Aid Small Donation Scheme individual limit increased to £30
All from April 2019

Thank you for coming

Charity Seminar Guidance

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