For more information see: http://www.ibblaw.co.uk/service/charities There is a vast amount of information produced by and for the charity sector to help charity trustees and charity managers.Unfortunately it is not brought together effectively in any one place. In this Guide we have handpicked some selected guidance and websites dealing with issues of regular concern to charities. We have grouped them under some key headings. (“CC” denotes a guide produced by the Charity Commission and in certain cases you are required to have reviewed the relevant Commission guidance.) Please remember that we are always happy to help answer your questions and queries by phone or email. You can also make sure that you keep up to date with developments in the sector by signing up to our quarterly newsletter. For more information and to sign up for free charity law updates visit http://www.ibblaw.co.uk/service/charities. Contact IBB's charity and social enterprise lawyers for advice. We are based in West London, but cover all surrounding areas.

1. IBB Charities Team
IBB Charities Team
Pointing you in the right direction
Charity Accounting
The framework for accounting for your charity will depend on your size and the way in which
you are established, but all charities must prepare accounts and some will require an audit or
independent examination.
CC15b: Charity Reporting and Accounting the Essentials
https://www.gov.uk/government/publications/charity-reporting-and-accounting-the-essentials-cc15b/
charity-reporting-and-accounting-the-essentials
More details on the charity’s SORP which applies to charitable companies and larger charities
is available at https://www.gov.uk/government/uploads/system/uploads/attachment_data/
file/354885/sorp05textcolour.pdf
Internal controls and reporting
Internal financial controls are checks and procedures which help trustees to safeguard their
charity’s assets and manage risk.
CC8: Internal Financial Controls for Charities
CC8: A self-checklist for charities
https://www.gov.uk/government/publications/internal-financial-controls-for-charities-cc8/internal-financial-
controls-for-charities
Charities are required to report serious incidents to the Charity Commission as soon as possible.
Further Guidance on your reporting duties can be found at:
Reporting Serious Incidents
http://goo.gl/uvlbW
Charity Fraud: A guide for the trustees and managers of charities
http://goo.gl/BUElx
Conflicts of interest
Trustees must identify and properly manage any conflicts of interest or loyalty. Failure to do
so is one of the most common causes of governance failings.
CC Guide to conflicts of Interest for charity trustees http://goo.gl/7gpIK
Payment of trustees
Most trustees are unpaid and your governing document will set out the very limited
circumstances in which a trustee may receive a benefit from a charity. If you wish to make a
payment to a trustee (or someone who is connected with a trustee) you should be sure that
you have the necessary power to do so, or seek the Charity Commission’s consent.
CC11: Trustee Expenses and Payments
https://www.gov.uk/government/publications/trustee-expenses-and-payments-cc11/trustee-expenses-
and-payments
Public benefit
All charities must have regard to the Charity Commission’s guidance on public benefit, be able
to demonstrate the public benefit which they provide and report on it in their accounts.
Charities and Public Benefit:
https://www.gov.uk/government/collections/charitable-purposes-and-public-benefit
Supplementary Public Benefit Guidance is also available relating to the prevention or relief of
poverty, the advancement of religion, the advancement of education and fee charging.
Risk
Charities should regularly review the risks they face in all areas of their work and then plan for
those risks. The Commission provides guidance to assist in this process including explaining
how to create a risk register.
CC26: Charities and Risk Management – A guide for trustees
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/352535/cc26text.pdf
Protecting Charities from Harm: https://www.gov.uk/government/collections/protecting-charities-from-
harm-compliance-toolkit
Chapter 1 – Charities and Terrorism
Chapter 2 – Due diligence, monitoring and the end use of funds
Chapter 3 – Fraud and financial crime
Chapter 4 – Holding, moving and receiving funds safely in the UK and internationally
Chapter 5 – Protecting charities from abuse for extremist purposes
CC49: Charities and Insurance
https://www.gov.uk/government/publications/charities-and-insurance-cc49/charities-and-insurance
CFG also publishes an annual risk survey which examines some of the key risks facing the sector and
it is available from their website.
Peter Burnett
Consultant
01895 207809
peter.burnett@ibblaw.co.uk
Jo Coleman
Partner
01895 207809
jo.coleman@ibblaw.co.uk
Eva Abeles
Senior Solicitor
01895 207964
eva.abeles@ibblaw.co.uk
About this Guide
There is a vast amount of information
produced by and for the charity sector to
help charity trustees and charity managers.
Unfortunately it is not brought together
effectively in any one place.
In this Guide we have handpicked some
selected guidance and websites dealing
with issues of regular concern to charities.
We have grouped them under some key
headings. (“CC” denotes a guide produced
by the Charity Commission and in certain
cases you are required to have reviewed
the relevant Commission guidance.)
Please remember that we are always
happy to help answer your questions and
queries by phone or email. You can also
make sure that you keep up to date with
developments in the sector by signing up
to our quarterly newsletter.
This booklet is designed to help you find your way around the guidance provided for charity
trustees. IBB Solicitors does not accept any liability for any information provided by a third
party site. You should always consider taking professional advice. IBB Solicitors is authorised
and regulated by the Solicitors’ Regulation Authority, reg no 78310.
We are Lexcel and ISO:9001-accredited © IBB Solicitors Novembe 2014

2. Working internationally
CC Guidance for charities working internationally
https://www.gov.uk/charities-how-to-manage-risks-when-working-internationally
CFG: Better FX: A Guide to improved foreign exchange practice in the UK Charity Sector
http://goo.gl/bokIz
Trustees’ duties and responsibilities
The overriding duty of charity trustees is to further the purposes of their charity and act in
the charity’s best interests at all times. In doing so, trustees have a number of specific duties.
These guides outline a charity trustee’s principal responsibilities.
CC3: The Essential Trustee: What you need to know
https://www.gov.uk/government/publications/the-essential-trustee-what-you-need-to-know-cc3
CC3a: The Essential Trustee – an Introduction
http://www.reachskills.org.uk/file/the-essential-trustee-cc3-pdf
NCVO: Reducing the Risks: A Guide to Trustee Liabilities
http://www.gmcvo.org.uk/sites/gmcvo.org.uk/files/ReducingtheRisks.pdf
ICAEW: Duties of Charity Trustees
http://goo.gl/61nq7
Recruiting new trustees
Start as you mean to go on by making sure you establish that your trustees are eligible to
serve (some people are disqualified by law from acting as a charity trustee) and that your
recruitment process and induction is streamlined.
Both the Charity Commission and HMRC recommends that new trustees sign a declaration form to
confirm all checks have been made.
The Commission’s Trustee Eligibility Declaration Form can be found here:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/316308/trustee-declaration-
v4.pdf
...and HMRC’s Model Declaration for Fit and Proper Persons can be found here:
http://goo.gl/ID2uT
CC30 : Finding new Trustees – What you need to know
http://goo.gl/GRi9b
Good Practice in Trustee Recruitment from NVCO:
https://www.ncvo.org.uk/component/redshop/1-publications/P48-good-practice-in-trustee-recruitment-
toolkit
Governance
Good governance means ensuring that your charity runs effectively and follows good practice.
CC10: Hallmarks of an Effective Charity
https://www.gov.uk/government/publications/the-hallmarks-of-an-effective-charity-cc10/the-hallmarks-
of-an-effective-charity
Good Governance: a code for the voluntary and community sector
This Code has been developed by the sector and focuses on six key principles to help charities get
their governance right http://www.governancecode.org/
Property
Special rules apply when a charity disposes of any interest in land.
CC33: Acquiring Land
https://www.gov.uk/government/publications/acquiring-land-cc33/acquiring-land
CC28: Disposing of Charity Land
https://www.gov.uk/government/publications/sales-leases-transfers-or-mortgages-what-trustees-need-
to-know-about-disposing-of-charity-land-cc28/sales-leases-transfers-or-mortgages-what-trustees-
need-to-know-about-disposing-of-charity-land
Land Registry: Practice Guide 14 – Charities
https://www.gov.uk/government/publications/charities-advice-for-applications-to-be-sent-to-land-registry/
practice-guide-14-charities--2
The Official Custodian for Charities operates a landholding service for charities which is free to use
and removes the need to have separate holding trustees. Details can be found here:
CC13: The Official Custodian
https://www.gov.uk/government/publications/the-official-custodian-for-charities-land-holding-service-
cc13/the-official-custodian-for-charities-land-holding-service
Investment
Trustees need to understand the powers they have to invest their charity’s assets.
The Commission’s Guidance covers general duties, appointing investment managers, assessing
performance, ethical investment, programme related investment, mixed motive investments as well
as matters which are relevant to charities holding permanent endowment.
CC14: Investment of Charitable Funds
https://www.gov.uk/government/publications/charities-and-investment-matters-a-guide-for-trustees-
cc14/charities-and-investment-matters-a-guide-for-trustees
Guide to writing an Investment Policy: http://goo.gl/OEttO
IBB has also produced its own guide to investment by charities, which is available on request.
Reserves
Charities holding reserves should develop and review their reserves policy on a regular basis,
and must be able to justify it.
CC19: Charities and Reserves
https://www.gov.uk/government/publications/charities-and-reserves-cc19/charities-and-reserves
Data protection
Charities holding personal data (about employees, beneficiaries, donors etc.) will need to
ensure that they comply with data protection law.
Information Commissioner’s Office: information on data protection compliance: http://ico.org.uk
Protecting Data. Protecting People: A Guide for Charities http://goo.gl/UfuLY
Fundraising
Fundraising law and regulation is complex and different rules apply to different methods of
fundraising. The Charity Commission’s Guidance provides a good overview of the fundraising
framework.
CC20: Charities and Fundraising: https://www.gov.uk/government/publications/charities-and-fundraising-
cc20/charities-and-fundraising
Institute of Fundraising: Code of Fundraising Practice
www.institute-of-fundraising.org.uk
Contains the best practice standards for all forms of charitable fundraising
For Guidance on Professional Fundraisers and Commercial Participators,
see the Cabinet Office Guidance on Solicitation Statements:
http://goo.gl/Nz08r
Lotteries: www.gamblingcommission.gov.uk
Trading
Generally, charities cannot engage in taxable trade. These guides will help you get to grips
with primary purpose and non-primary purpose trading and when you might need a trading
subsidiary.
CC35: Trustees, trading and tax
https://www.gov.uk/government/publications/trustees-trading-and-tax-how-charities-may-lawfully-trade-
cc35/trustees-trading-and-tax-how-charities-may-lawfully-trade
CFG Guide: The tax implications of charity trading: http://goo.gl/khjAP
Charity Tax
There are many reliefs, incentives and exemptions that apply to charities and charitable
donations. Charity trustees need to understand the tax framework in which their charity
operates.
HMRC: Tax guidance for charities http://www.hmrc.gov.uk/Charities/tax/index.htm
Gift Aid: http://www.hmrc.gov.uk/Charities/gift_aid/
Charity Tax Map: a study that outlines the impact of taxation on the
charitable sector http://www.ctrg.org.uk/tax_map
You can also find information about charity business rates relief which applies to non-domestic
properties used for charitable purposes via your local council.
Charity regulators
Charity regulation is devolved in the nations and some charities operating in more than one
nation may need to be registered (and file returns) with more than one Regulator.
The Charity Commission
https://www.gov.uk/government/organisations/charity-commission
Office of the Scottish Charities Regulator (OSCR)
http://www.oscr.org.uk/
The Charity Commission for Northern Ireland
http://www.charitycommissionni.org.uk/
Fundraising Standards Board
The independent self-regulatory body for UK fundraising: www.frsb.org.uk
Sector bodies
There are many umbrella bodies in the sector which provide specialist advice to their
members. Some of them are listed here but there are many other organisations that focus on
providing specific advice to particular sectors.
ACEVO – Association of Chief Executives of Voluntary Organisations www.acevo.org.uk
NAVCA –National Association for Voluntary and Community Action www.navca.org.uk
NCVO – National Council for Voluntary Organisations http://www.ncvo.org.uk/
CTG Charity Tax Group www.ctrg.org.uk
CFG Charity Finance Group www.cfg.org.uk
ICSA (Institute of Chartered Secretaries and Administrators) https://www.icsa.org.uk/
Directory of Social Change (publishes trust funding and grants for individuals publications):
www.dsc.org.uk
Small Charities http://www.smallcharities.org.uk
Charity trustee network http://www.trusteenet.org.uk