Managing Your Community Building - Village Hall76 Getting Your Application to the Top of the Pile 77 More about Managing Your Finances 77 Relate the Books of Account to the Budget

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ManagingYour Community

Building

A practical handbook

for people running buildings

in local communities

Peter Hudson

Third Edition

edited by Jacki Reason

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British Library Cataloguing-in-Publication DataA catalogue record for this book is available fromthe British Library.

ISBN 0 900787 75 9

This book is designed to be photocopied for use intraining, and no special permission is required forsuch limited reproduction, as long as the source isacknowledged. Complete or systematic or large-scale reproduction or inclusion of extracts inpublications for sale may be done only with writtenpermission from the publishers.

Published by Community Matters8/9 Upper Street, London N1 0PQTelephone 020 7226 0189

Community Matters is registered as a charity as theNational Federation of Community Organisations.

© 2000 Community Matters andPeter Hudson

Designed by Andrew Haig & AssociatesIllustrated by Geoffrey HaddonTypeset by IntertypePrinted by Albert Gait Limited

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Foreword

This highly successful book, first published in 1993,is now in its third edition. The fact that this has beennecessary shows that it has satisfied a need. Manybooks are published that are written for professionalsbut the uniqueness of this book is that it is especiallyuseful and has been designed for the lay person aswell as the professional. Whilst many volunteershave the skills and knowledge necessary to managetheir community buildings successfully this is a goodbook which both they and others new to all therequirements of the multitude of laws and regula-tions can turn to for the information they need.

Laws and regulations are constantly changing andfor many people the legislation is complex and diffi-cult to understand. This book aims to take the com-plexity out of the information necessary for the suc-cessful management of a community building andthe activities which take place in it and make iteasily understood. We have recently seen changesto:• Employment Law and Regulations• Data Protection Act• Disability Discrimination ActThe cautionary tales are useful examples of thingsthat can go wrong, not because people want to breakthe law, but through lack of knowledge. Althoughpublications exist which supply the information,they are written in such a way that it requires knowl-edge of legal terminology to understand them. Thisbook avoids this problem and is written in a waywhich is free of jargon.

In my work both as a professional and a volunteerI have found it invaluable. I would recommend thatall members of a management committee and thoseinvolved in the running of the community buildingfamiliarise themselves with its contents.

Dora MapleCommunity Consultant

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Acknowledgements

In this third edition of Managing Your CommunityBuilding, our aim has been to retain the accessibledesign and approach of the first two editions, whileupdating and adding to the contents.

We continue to be grateful to the original au-thor, Peter Hudson, and the editorial group, chairedby Barrie Thompson, which supported him, and tothe design team of Andrew Haig and Geoff Haddon.

We are tremendously indebted to Jacki Reason,who skilfully and efficiently edited the second edi-tion, and has now done justice to the third edition,incorporating changes both large and small, whileadding new areas which have taken effect since1998. In that work she has been ably assisted byVeronica Karrinton and Diana Hopkins.

We acknowledge the support of Dora Maple,who has been a constant source of support, and forwriting the foreword to this edition. Finally we ac-knowledge our readers, whose enthusiasm for thebook has encouraged us to proceed with this thirdedition, and who we hope will appreciate it as muchas its predecessors.

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3 Staffing – voluntary andpaid

30 Introduction30 Differences Between Employees and

Voluntary Workers31 A Note About Formal and Informal31 Employees’ and Employers’ Rights

and Responsibilities31 Employment Law32 Part Time Workers32 National Minimum Wage32 Working Time Regulations33 Rights of All Employees35 Voluntary Workers35 Volunteers and State Benefits35 National Insurance36 How Volunteering can Affect Benefit36 Volunteers and Expenses37 A Cautionary Tale37 Volunteers and Equal Opportunities38 Volunteers and Health and Safety38 Volunteers and Recruitment and other

Employment Practices38 Paid Employees38 The Need for Good Employment

Practices for Everyone38 Equal Opportunities Employment

39 Developing an Equal OpportunitiesPolicy

39 Key Elements of an Equal OpportunitiesPolicy

40 Training in Equal Opportunities PolicyEmployment Practices

40 Recruiting Workers40 The Recruitment Panel40 Clear Information for Applicants41 Job Description41 Person Specification41 Application Form42 Rehabilitation of Offenders42 Advertising42 Administering the Recruitment Process43 No Informal Interviews43 Shortlisting43 Interviewing43 Keeping Records

ForewordAcknowledgements

1 Introduction

2 Constitutional andorganisational matters

6 Introduction6 A Cautionary Tale7 Different Kinds of Organisation7 Having a Proper Governing Instrument9 Unincorporated Associations

10 Trusts10 Incorporation or Not?11 Companies Limited by Guarantee12 Industrial and Provident Societies12 Charitable Status12 Advantages of Charitable Registration13 Registration13 Activities Incompatible with

Charitable Status14 Summary of Accounting and Other

Requirements for Registered Charities15 Obligations of Charitable Registration15 Whose Building? – Forms of Tenure for

Community Buildings15 Buying16 Leasing17 Holding a Property on Licence17 Appointing Custodian Trustees to

Hold the Property18 Model Documents for Acquisition

of Property19 Conveyance of Land for the Purposes of a

Community Centre Declaring the Trustsin a Schedule

21 Responsibilities of Trustees23 Management Agreements24 Constitutional and Organisational

Checklist25 Useful Addresses26 Further Reading

Contents

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44 Letter of Offer44 A Note on References

44 Managing Workers44 The Cost of Being a Good Employer44 Contract of Employment46 Disciplinary Procedure46 Dismissal and Employees’ Rights47 Grievance Procedure48 Very Small Organisations48 Cleaners and Caretakers48 Tax, Insurance and Other Payments49 Retirement

49 Pensions49 Occupational Pension Schemes49 Stakeholder Pensions50 Personal Pension Plans50 Group Personal Pensions

50 Support and Supervision50 Regular Supervision Sessions51 Training52 Staffing Checklist53 Useful Addresses54 Further Reading

4 Finance58 Introduction58 Clarity is the Key58 The Budget and Business Plan are at the

Heart of Managing the Centre58 The Budget59 A Cautionary Tale60 Sample Budget Number One61 Sample Budget Number Two62 Income and Expenditure Categories

Grouped under Budget Headings64 How to Generate the Numbers64 Balancing the Budget65 How to Describe Reserves65 What to Do With ‘Central Costs’66 The Programme of Activities66 Procedures for Action66 Raising Funds for the Centre67 Using Professional Fundraisers67 Sources of Income67 Local and Regional Government Grants69 Central Government Grants

71 European Funding72 The National Lottery73 Feasibility Studies73 Charitable Trusts74 Industry and Commerce74 Other Fund-Raising Activities75 Making an Application76 Making the Best Possible Application76 Getting Your Application to the Top

of the Pile77 More about Managing Your Finances77 Relate the Books of Account to the Budget78 What to Do with Your Money78 Charity Accounts and Reports78 Financial Management Checklist81 Useful Addresses83 Further Reading85 Fund-Raising Ideas

5 Insurance88 Introduction88 A Cautionary Tale89 Types of Insurance Cover89 Public Liability Insurance89 Legal Liabilities Insurance89 Buildings Insurance90 Contents Insurance90 Computer Insurance90 Plate Glass Window Insurance90 Employer’s Liability Insurance91 Road Traffic Insurance91 Fidelity Insurance91 Professional Indemnity Insurance91 Equipment Failure91 Personal Accident91 Trustee Indemnity Cover92 Other Kinds of Insurance92 Other Matters To Do With Insurance92 Disclosure92 How Much to Insure For93 Who Should Take Out the Insurance and

Who Should Be Insured93 Security Arrangements93 Where to Get Your Insurance94 How To Make A Claim94 Insurance Checklist

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95 Useful Addresses95 Further Reading

6 Rates and taxes98 Introduction98 A Cautionary Tale98 Taxes Levied by the Inland Revenue98 Corporation Tax

100 Income Tax100 Capital Gains Tax100 Stamp Duty100 Further Help100 Value Added Tax100 General101 Some Details of VAT102 One or Two Surprises102 Voluntary Registration102 What Is and What Is Not a Taxable Supply103 Fundraising – Some Concessions

for Charities103 Purchases – Some Concessions for Charities105 Fuel and Power Supplies105 Rate Relief105 Water and Sewerage Charges106 Rates and Taxes Checklist106 Useful Addresses107 Further Reading

7 Licences and other legalpermissions

110 Introduction110 A Simplified Approach110 A Cautionary Tale111 Possible Licences and Permissions111 Alcohol112 Entertainment Licences114 Copyright and Royalty Permissions115 Gaming and Lottery Licences117 Keeping a Checklist of Licence

Renewal Dates117 Other Statutory Permissions117 Health and Safety Measures117 Health and Safety at Work Act, 1994

(HSW Act)118 Management of Health and Safety

at Work Regulations, 1999

119 Fire Precautions120 In Case of Fire notice120 End of Event Checklist120 Food Hygiene Regulations121 Health and Safety Checklist122 Food Hygiene Checklist123 Trading124 Street Collections124 Planning Permission125 Building Regulations126 Minibuses127 Record Keeping127 Protection of Children128 Police Checks130 Licensing and Other Legal

Permissions Checklist130 Useful Addresses132 Further Reading

8 Heating, lighting andcleaning

136 Introduction136 A Cautionary Tale136 Design and Plan For Efficiency136 New Buildings137 Creating a Maintenance Committee and

Plan of Action137 Heating and Lighting137 Energy Consumption137 Feeling Warm Enough137 Preventing Draughts138 Preventing Heat Loss by Insulation and

Secondary Glazing138 Types of Heating System140 An Educational Opportunity140 Cleaning140 Technical Aspects of Cleaning140 A Note on Floors141 Sample Cleaning Schedule for Washroom/

Lavatory Area141 Staffing Aspects of Cleaning142 Management Aspects of Cleaning142 Cleaning Outside the Building142 Waste Disposal142 Recycling

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142 Refuse Charges143 Heating, Lighting and Cleaning Checklist144 Useful Addresses144 Further Reading

9 Furniture and equipment146 Introduction146 A Cautionary Tale146 General Considerations147 Disability Discrimination Act147 Providing Goods and Services147 Definition148 Exceptions148 Storage Space149 Renting Office Equipment149 Fire Fighting Equipment and Alarms150 Notices, Training and Fire Drills150 Security Alarms151 Equipment for Playgroups151 Kitchen Equipment152 Electrical Equipment152 Computers152 What Computers Can Do153 Finding the Right Computer153 Electronic Communication153 What You Need to Get Connected153 Consultancy and Training154 Working Conditions and Health Matters154 Data Protection155 Checklist of Furniture and Equipment for

Community Buildings156 Furniture and Equipment Checklist157 Useful Addresses157 Further Reading

10 Rules and relationships160 Introduction160 Rules Governing the Use of the Building161 General Rules Governing the Use of the

Community Centre163 Hiring Out Your Building164 Model Hiring Agreement and Standard

Conditions of Hire for a CommunityBuilding

166 Equal Opportunities166 Developing the Policy

166 Equal Opportunities Policy Documents166 Statement of Intent167 Equal Opportunities Policy Objectives167 Implementing the Policy168 Equal Opportunities Code of Conduct168 Positive Action168 Model Code of Conduct168 Standards of Behaviour and Disciplinary

Procedures169 Code of Behaviour and Disciplinary

Procedure169 Rules and Relationships Checklist170 Useful Addresses170 Further Reading

11 Reaching out172 Introduction172 Reaching Out Starts Within172 Enhancing Your Image173 A Reaching Out Action Plan173 Key Elements of the Plan174 A Word of Caution174 More Detail on Some Aspects of

the Action Plan174 Door to Door Canvassing175 Surveys Using A Questionnaire175 Basic Rules in Undertaking a Community

Survey176 Public Meetings176 Newsletters and Community Newspapers176 Talks With Existing Groups177 Developing Appropriate Publicity Policies

and Practices177 Publicity Officer and Public Relations178 Training for Reaching Out178 Reaching Out Checklist179 Useful Addresses179 Further Reading180 Publishers’ Address List183 Index

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Introduction

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WHAT IS A COMMUNITY BUILDING?All over the country there are countless numbers ofbuildings in which some kind of community activ-ity is taking place. They have all sorts of differentnames. Many of them are simply called CommunityCentres. Thousands more are called Village Halls.Then there are Settlements and other kinds of So-cial Action Centres. Clearly many churches, syna-gogues and mosques use their buildings for commu-nity activity as distinct from religious activity.

There are grand, purpose-built, architect-de-signed affairs which make most of us, understand-ably, very envious. There are ramshackle oldhouses. There are humble Nissen huts andportakabins, converted crypts and schools and evenold factories. The size, style, age, shape and suitabil-ity of the great variety of community buildings are aremarkable testimony to the community spirit, en-thusiasm, concern and ingenuity of the thousandsof people who run them, who are as varied in back-ground, interests and abilities as the buildingsthemselves.

These community buildings have an equallywide range of activities going on in them. Some aredevoted to social activities – clubs and meetingplaces for different sections of the community.Many have bars and many do not. Some are moreconcerned with social welfare and citizens’ advice.Others are educational with classes in a whole rangeof subjects. Some are cultural, encouraging and pro-moting plays and music and dancing from a range ofethnic and cultural backgrounds as rich and diverseas the people of Britain themselves. Some are singlepurpose and some have a range of activities. Somehave activities entirely run by those responsible formanaging the building, some simply rent the build-ing out to other groups to run their own activitiesand events, and some do both.

Some community buildings are managed directlyby local authorities, but the majority are to somedegree at least the responsibility of a communityassociation or other voluntary management com-mittee.

WHO IS ‘MANAGING YOURCOMMUNITY BUILDING’ FOR?This book is primarily aimed at the voluntary man-agers of community buildings. That is not to saythat your paid staff, if you have them, will not alsofind it useful. You, the managers, are the ones re-sponsible for all aspects of the building and most ofyou do not have staff.

You may have been running a community build-ing for years and have acquired lots of experience oryou may be very new to the business. In some casesyou may be so new as not even to have a communitybuilding yet – you may be trying to establish one.Whatever the case it is hoped that there is some-thing in this book for you.

A salutary lesson for me in researching this book,as one who has, in one way or another, been a man-ager of a community building for more than twentyyears, is to discover how much I did not know! Sowhether you think you know it all or know that youknow very little this book should be of value.

VOLUNTEERSThe people who run these thousands of communitybuildings, whilst of infinite diversity in terms ofbackground, education, class and culture, all have atleast one thing in common – they are volunteersand give freely of their time to help develop a senseof community and provide services of a human andfriendly nature. Some, but by no means most, em-ploy staff to carry out some of their activities. It maybe only a cleaner in many cases whilst in othersthere is a paid co-ordinator, perhaps a youth worker.In a few there are quite a lot of staff. This has manyadvantages but also brings extra responsibilities tothe voluntary managers, who employ them.

Whether you employ staff or not you as the man-agers of the building are voluntary and so are manyof the other people involved with your organisation.Never forget this but rather take active steps to bepositive about all volunteers. This book aims to helpyou identify clear roles for them, be as careful aboutrecruiting volunteers as you are about recruiting anyone else, and support them so that they feel appreci-ated and can continue to contribute to the life ofthe community building for a considerable period.

INTRODUCTION

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Volunteers are amongst the most valuable assets youhave: treat them as such. But being a volunteer doesnot mean that you are not subject to the commonwill and can do things just how you like. The laws ofthe land apply to you just as much as anyone else asdo the rules of good practice.

THE NEED FOR REGULAR TRAININGAND UPDATINGThe usual situation with regard to managers of com-munity buildings is that there is a steady turnover ofpersonnel. Indeed it could be said that this is as itshould be so that the life of the community buildingis open to the life of the community. A consequenceof this, however, is that you are constantly losingpeople with experience and gaining people withoutexperience. There is really only one sensible way tocombat this: regular training and information ses-sions for all management committee members. Aspart of this approach it is sensible to have regularplanning meetings and to develop clear and welldocumented policies on how a whole range of mat-ters are to be dealt with. Training and updatingshould be a regular item on the Management Com-mittee agenda and a specific induction informationpack for new members should be devised and keptup-to-date. More particular reference is made to thisin the main body of the book. The need for regulartraining cannot be stressed too much. I hope Manag-ing Your Community Building helps you with this.

CHARITY AND FINANCE MATTERSThe majority of organisations running communitybuildings are charitable and most charities have anobligation to register with the Charity Commission-ers (see page 13). Charity law has recently beenrevised and consolidated and is now covered by theCharities Acts, 1992 and 1993. Obligations underthe Acts are set out in chapter 2 – Constitutional andOrganisational Matters – and chapter 4 – Finance.The 1992 and 1993 Acts heightened awareness ofexisting responsibilities of charities and charity trus-tees (ie members of their management committees).

Many people concerned with community build-ings and the activities that go on in and aroundthem have no interest in how they are financed and

how the finances are managed. Their main concernis the service to the community and they are happyto let others deal with the money. This is a positionthat is becoming less and less tenable: money isscarce, good treasurers are not easy to find, and evenif you have a good treasurer the responsibility forgood financial management lies with the wholecommittee. The Charities Act, 1993 serves as atimely reminder of this. It is strongly advocated,therefore, that the handling of financial matters isnot left to the treasurer but an active approach tofinance is taken by the whole committee. Detailedbudgeting and financial monitoring will be of tre-mendous help affecting the whole of the communitybuilding. So you are especially exhorted to givespecial attention to chapter 4 – Finance.

THE SOURCES, FORMAT, STRUCTUREAND ASSUMPTIONS OF THE BOOKThe book attempts to cover all the major topicswhich have to do with running a community build-ing. It covers constitutional issues, finances, staff-ing, licences, maintenance and a host of others. Thelast chapter talks about Reaching Out from the build-ing itself in an attempt to ensure that you are con-stantly in touch with the changing needs of thepeople you serve.

Much of the book is about good practice andapplies throughout the UK (and beyond). Wherethe text relates to legislation, however, it refers toEngland and Wales. The law may vary in other partsof the UK, and you should therefore check theposition.

The book has come about as a result of Commu-nity Matters, the largest national network of multi-purpose community organisations, wanting to puttogether all its wealth of information and experi-ence about managing community buildings in onepublication. Community Matters also publishes afull range of more detailed information on many ofthe topics covered here. The most relevant ones arelisted, chapter by chapter, in the further reading sec-tions. Much of this information is contained in sin-gle topic information sheets which can be boughtfrom Community Matters at a modest charge or areavailable free to member organisations.

INTRODUCTION

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There is lots of other specialised information avail-able and this too is listed in the appropriate placethroughout the book. There is no way that it can besummarised here and you must decide which otherbooks, if any, you could benefit from. Two books do,however, stick out as being particularly useful and youcould consider getting access to them or even buyingyour own copy. The first is Voluntary But Not Amateurpublished by London Voluntary Service Council, andthe other is Croner’s Management of Voluntary Organi-sations published by Croner Publications. Publishers’addresses appear on page 180.

There is a lot of legislation that affects the run-ning of community buildings and, wherever appro-priate, the names of the laws concerned are givenin the text so that you can go to the source if youfeel you need to. Similarly there is a detailed andcomprehensive book-list at the end of each chap-ter so that you can discover more specialist infor-mation on a topic if need be. It is a basic assump-tion of the book that it is always sensible to seekfurther information and advice if you have anyremaining doubt about anything to do with yourbuilding and its management. Whilst every efforthas been made to be as comprehensive and as up-to-date as possible, the book cannot give, and doesnot claim to give the definitive answer on every-thing you need to know or give a full statement ofthe law. It can, and I hope does, give you a prettygood amount of information on the vast majorityof key areas affecting the management of yourcommunity building.

Another fundamental assumption of the book isthat there are three important principles involvedin running community buildings, that will stand you

INTRODUCTION

in good stead in just about all you have to do inconnection with the building. They can be stated assimple maxims:• aim for clarity in all you do!• use common sense at all times!• if in the slightest doubt, check it out!The trouble is, however, that common sense is notas common as it could be! Thus awful mistakes canand do happen. They are still the exception ratherthan the rule, but none of us is immune. To remindyou of the constant possibility of a major disasterhappening most chapters have, somewhere near thebeginning, a Cautionary Tale about an actual (al-though anonymous) situation where a communityorganisation caused itself serious difficulties by ei-ther doing something it should not have done or notdoing something it should have done. The caution-ary tale of all cautionary tales is that, in all cases,these problems arose through ignorance or negli-gence and never through wilful action.

At the end of each chapter there is a checklistwhich you can use as a simple guide for all the thingsyou should at least consider in connection with yourcommunity building. The checklists contain, in ef-fect, one line summaries of all the topics raised inthe chapter.

The book has a spiral binding so that it will lieflat when opened at any particular page. This makesit easy to photocopy particular pages or tables to usefor training purposes. The copyright of the book isheld jointly by the author and Community Matters.Permission is not required to use small amounts ofphotocopies for training purposes. Large scale pho-tocopying is not permitted without first consultingCommunity Matters.

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222222222222222222222222222222222222Constitutional

and organisationalmatters

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CONSTITUTIONAL & ORGANISATIONAL MATTERS

confidence in its management committee.They handed the profits over to the parishcouncil instead.

The community association was thusstarved of funds, but it still had to pay all theoverheads of running the building. Thereforethe association failed to pay its rent on timeand was evicted by the parish council. Theparish council claimed that the occupationlicence was a lease.

The community association decided to fightand a legal battle ensued involving solicitorsfrom very high authorities. After a longstruggle the community association received aruling making it the lawful tenants and soreturned to the community building. Anaction plan was agreed which, it was hoped,would restore harmony to the strife-tornvillage after seven years’ bitter and publicfighting over the issue. The wounds of yearsof terrible dissension could be healed and thecommunity building re-opened offeringimportant services to all the residents.

Just as everyone thought all was well andthe action plan implemented, the social clubdissolved itself and left the premises removingvirtually all the fixtures and fittings. Thecommunity association was left with an emptyshell and had to start everything again.

A community association which shall remainnameless saw itself in a Landlord and Tenantrelationship with its parish council. Whilst theminutes had matters recorded thus, no formallease had in fact been drawn up. On a day today basis, however, the communityassociation managed the running of thebuilding and the parish council carried outrepairs and structural alterations.

An extension to the existing building wasbuilt and used to house a bar. A social clubwas formed to run the bar. Two officers ofthe community association were also parishcouncillors and became officers of the socialclub too.

As is proper when there is a bar in acommunity building, it was managed by asocial club established for the purpose withlimited liability. An occupation licence wasdrawn up between the community associationand the social club. It was, of course, intendedthat the profits of the social club becovenanted over to the communityassociation.

The two ‘common officers’ stood downfrom the community association at the nextAGM. Not long afterwards the social clubstopped passing over money to thecommunity association, stating they had no

INTRODUCTION

A CAUTIONARY TALE

Running a community building is a serious business.To do it properly certain legal and constitutionalrequirements need to be met. This chapter givesinformation about the kind of organisation you needto set up to take responsibility for a communitybuilding. It considers the pros and cons of becomingan incorporated body (for example a company) asopposed to an unincorporated association. It dis-cusses the rules governing registered charities, and,

where applicable, the requirements of bodies to reg-ister with the Charity Commission. It also givessamples of legal agreements that you will need toenter into when you take on a community building,whether you own it yourselves or lease it from some-one else. Information is also given about the legalduties and responsibilities of charity trustees andmanagement committee members.

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There are of course many lessons to be drawn fromthe story above. By and large this book will let thecautionary tales speak for themselves, but one over-riding moral of this one must be to be sure to getexpert advice when dealing with legal, constitu-tional and organisational matters and not leavethings to chance. That goes for the kind of organisa-tion you need to establish to run your communitybuilding as much as anything else.

There are four types of structure that cover mosttypes of voluntary organisation:• unincorporated association• trust• company limited by guarantee• industrial and provident societyDepending on the objects of the organisation all ofthe above may be charitable and – apart from indus-trial and provident societies – may be required toregister with the Charity Commission (see page 13).

If you manage a community building or are pre-paring to do so then it is important to have the kindof structure that will give you maximum benefit andsafeguard you as well as possible from the kind ofproblems referred to in the cautionary tale.

Most organisations managing community build-ings are either unincorporated associations, trusts orcompanies limited by guarantee. More is said abouteach of these in the following pages.

HAVING A PROPER GOVERNINGINSTRUMENTWhatever form of organisation you eventuallychoose you will need a document setting out yourpurposes or objects, who (if anyone) is eligible formembership, how your affairs will be structured andmanaged and what will happen to your assets if youwind up the organisation. This is your governinginstrument. Depending on the kind of organisationyou are this document will be referred to differently(although ‘constitution’ is commonly used for alltypes of governing instrument):• unincorporated association – constitution• trust – trust deed• company limited by guarantee – memorandum

and articles of association

• friendly society• industrial and provident society – rulesIt is important to take great care about drawing upthe governing instrument as it will affect everythingthat goes on in the community building. If you wantto achieve charitable status (see page 13) the word-ing of the governing instrument has to be just right.It is also the document that determines the overallcharacter of the association in terms of who it’s forand who will control it.

The governing instrument has to have a numberof key elements in order to protect the organisationfrom a variety of difficulties and disputes in manag-ing itself, to enable it to register as a charity, and toensure that it is legally capable of taking onpremises. These key elements, which should be setout in separate clauses, are listed below.

NameThe name of your organisation should be the firstclause.

Area of BenefitFor most community organisations, it is sensible todefine the area of benefit, that is the geographical areain which you expect to operate. This could be a neigh-bourhood, a borough or, in a few cases, a larger area.

ObjectsHere you should state the aims and objectives of theorganisation. As well as defining what are legitimateactivities for the organisation to undertake, thisclause is crucial if you wish to register as a charity, asall your objects must be charitable (see page 13).

PowersHere you describe all the powers you need (eg tohold property, to employ staff, to raise funds) inorder to achieve your objects.

MembershipThis clause defines who can and who cannot jointhe association and on what terms. It is importantto ensure that your terms of membership do notconflict with your equal opportunities policy (seechapter 10).

DIFFERENT KINDS OF ORGANISATION

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Also, if you are a registered charity, once youhave defined the limits to membership, for instanceby your area of benefit, then everyone within thoselimits should have a right to join.

Model objects have been approved by the Char-ity Commissioners for community associations andother recreational charities established primarily foridentifiable minority ethnic groups where theywould be satisfied that special need existed. A groupmay not use the word ‘black’ in its governing instru-ment, because of the Race Relations Act, but wordsreferring to race, nationality, ethnic or national ori-gins are acceptable.

SubscriptionsA clause stating who determines the amount ofsubscription payable by members.

Termination of MembershipIt is important to define who decides if someone’smembership is to be suspended or terminated and onwhat grounds. Good practice also demands thatmembers have a right to be heard by the decidingbody and also a right of appeal to an independentarbitrator.

Committee StructuresThis clause sets out how the main committee is to bemade up and gives it rights to appoint sub-commit-tees. In the case of unincorporated registered chari-ties it should also state that no person under 18 maybe a voting member of the committee, nor shouldany person who is disqualified from acting as a char-ity trustee be eligible to be elected or appointed tothe main committee. Section 72(1) of the CharitiesAct, 1993 lists disqualification causes as:• an unspent conviction for an offence involving

dishonesty or deception• an undischarged bankruptcy• an undischarged composition or arrangement

with creditors under the Insolvency Act, 1986• the removal of the person concerned from his/

her office as a charity trustee by the CharityCommission or the Court

• being subject to a disqualification order underthe Company Directors’ Disqualification Act,1986

It is an offence to act as a charity trustee whiledisqualified unless the Charity Commissioners havegiven a waiver under section 72(4) of the CharitiesAct, 1993.

Honorary OfficersMost organisations have a Chair, Vice-Chair,Treasurer and Secretary, all of whom are unpaid.This clause sets out which officers are to be electedat the Annual General Meeting (AGM), andwhether they are ex-officio the officers of the gen-eral committee (in most cases they are). It alsodetermines how vacancies are to be filled if theyarise between AGMs.

Remuneration of TrusteesThere are some circumstances where it is possible topay trustees for specific services to the association –if the work is necessary and exceptional, is not partof a trustee’s normal duties, and the payment isreasonable for the work done and competitive withwhat an outside person would charge – but this mustbe allowed for in the governing instrument.

There are two alternatives: you can include aclause stating ‘Subject to the prior written approvalof the Charity Commission, trustees can be remu-nerated …’, which would mean getting written ap-proval each time you wanted to make use of theclause, or you can include wording (included inCommunity Matters’ model constitution) thatwould allow you to make more regular use of theclause (subject to the governing instrument beingapproved by the Charity Commission).

Paid OfficersThis clause states who can appoint and dismiss staffand fix their rate of pay and terms and conditions ofemployment. To achieve charitable registration it isadvisable also to state in this clause that no paid staffmay be a member of the organisation’s main com-mittee, although they can be in attendance.

Although the model constitution allows for theremuneration of trustees for new organisations, tomake this a regular occurrence by way of employ-ment is questionable.

The Charity Commission will judge each case onits merit.

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General Meetings of the AssociationHere you prescribe how Annual General Meetingsand Extraordinary General Meetings of the organi-sation are to be called and run and what businessshall be dealt with.

Rules of Procedure at all MeetingsThis should set out how voting should take place,the quorum for the various meetings (ie how manymembers have to be present at a meeting for it to beable to conduct its business), and that records ofmeetings shall be kept.

Standing Orders and Rules for theUse of the CentreThis is simply a clause giving the general committeethe right to issue rules for managing its affairs andrunning the community building and stating thatthey shall be consistent with the governing instru-ment; the procedural rules for running the committeewill normally be in a separate document from thosegoverning the use of the building; sometimes theright to review and amend these rules is given to theAGM.

FinanceThis clause prescribes how the organisation’s fundsshall be spent, accounted for and audited. It also setsout how funds are to be invested and what signa-tures are necessary to draw on bank accounts; regis-tered charities are bound by the provisions of theCharities Act, 1993 (see page 14); companies arebound by company law.

Trust PropertyIn the case of unincorporated bodies a custodiantrustee or holding trustees must be appointed tohold property. This clause gives the organisation theauthority to do that and outlines how it shall bedone (see page 17).

DissolutionThis describes the procedure for winding up theorganisation, usually by a simple majority at a gen-eral meeting of the organisation. It also states howany remaining assets of the organisation shall bedistributed – in the case of a registered charity,subject to the approval of the Charity Commission.

Alteration to the Governing InstrumentGoverning instruments do need to be amended fromtime to time, but this can only be done in a predeter-mined manner and normally only following seriousdebate. It is usually carried out at a general meetingof the organisation and requires a two thirds major-ity. In the case of a registered charity the objects andthe dissolution clause can only be changed follow-ing written agreement by the Charity Commission.

UNINCORPORATED ASSOCIATIONSIf you are starting a new organisation, and thereforeneed a governing instrument, it is worth trying tofind a model document that will suit your purpose.This is especially the case if you will be seekingcharitable registration. The Charity Commissionproduces its own model governing instruments.They are, however, very general.

More specifically, Community Matters has hadmany years of advising groups all over the countryon setting up community organisations and writingconstitutions that satisfy the requirements of vari-ous bodies such as the Charity Commissioners andthe Inland Revenue. This experience has been putinto producing a model constitution for a commu-nity association. It may be purchased from the Lon-don office of Community Matters (address on page25). ACRE has a similar document for village halls.The main difference is that as village halls tend tobe trusts the document is a declaration of trust.ACRE has two sets of model documents – for thoseorganisations which own their building and forthose who lease it – these include a conveyance andlease document together with model hiring rulesand all the rules and regulations concerned withrunning the organisation – that bit usually referredto as the constitution.

The Community Matters’ model constitution issuitable for an unincorporated association that wishesto apply for charitable registration. You still have togo through the model constitution with a fine-toothcomb before adopting it for your organisation to en-sure that it fits your particular purposes and localcircumstances. If this process leads you to want tomake changes other than filling in the gaps then itwould be wise to discuss them with Community

10


Matters first so as not to invalidate it insofar as chari-table registration is concerned.

TRUSTSA trust is a device in English law to enable anappointed group of people to manage property and/or money for a specific purpose. The Trust Deed orDeclaration of Trust sets out how the trustees, ofwhich there must be at least two, shall manage ordispense the assets of the trust. Trusts do not have tobe charitable in intent although those concernedwith community buildings probably will be. More issaid about charities and the law on page 13.

A Declaration of Trust has to be made under sealby each of the trustees, and stamp duty of a minimalamount is payable, unless it is a charitable trust,when there is no fee. It is advisable to get the help ofa solicitor if you wish to establish a trust.

A trust is an unincorporated body. Model trustdocuments suitable for organisations managingcommunity buildings are available from ACRE (seeend of chapter). The laws governing trusts are theTrustee Act, 1925 and the Trustee InvestmentsAct, 1961. If a trust is charitable it is also subject tothe Charities Acts, 1992 and 1993.

At time of writing the Trustee Bill was goingthrough Parliament, which, if it becomes law, willabolish the Trustee Investments Act and mean thatcharities will have full investment powers.

INCORPORATION OR NOT?The Community Matters’ form of model constitu-tion is suitable for an unincorporated association. Ifadopted it will be acceptable to the Charity Com-mission for registration. It will not as such, however,permit the organisation to hold property either on aleasehold or freehold basis. That can only be donelegally by a properly established custodian or hold-ing trustees acting on behalf of the community or-ganisation, the Official Custodian for Charities (seepage 17) or an incorporated body.

An incorporated body, such as a limited com-pany or an industrial and provident society, is oneupon which the law confers a corporate and separatelegal identity. In other words the organisation itselfrather than the individual members is the body that

carries liability for its actions, that can make legalagreements, that can sue and be sued, and is respon-sible for property.

Two model memorandum and articles for a com-munity association have been approved by theCharity Commission and are available as part of anincorporation package available from CommunityTrading Services Ltd (address on page 25).

Subject to proper management, the committeemembers of an incorporated body are not held indi-vidually responsible for the actions of the organisa-tion and thus cannot lose their own personal posses-sions or money in the case of difficulty. Committeemembers will still be held liable, however, for anybreaches of trust, negligence or wrongful trading. Inother words, if they act prudently and legally, theirliability is limited, but the limited liability status isno protection against imprudent and illegal activity.

In the case of a charity an unincorporated associa-tion is quick and cheap to set up and can be wound upcheaply. Also the association’s existence does notdepend on official registration other than with theCharity Commission. Most community associationswith few or no employees, and local groups and socie-ties are set up as unincorporated associations.

Apart from not being able to hold title to prop-erty, the main disadvantage of being an unincorpo-rated association is that management committeemembers, either individually or collectively, may besued for breach of contract and may incur unlimitedpersonal liability. However, incorporation is not theonly way of overcoming these disadvantages:• property can be vested in a custodian trustee or

holding trustees or in the Official Custodian forCharities (see page 17)

• taking out trustee liability insurance can go someway to minimising the risk of personal responsi-bility of trustees (see chapter 5) – before takingout a policy a charity needs to have a power in itsgoverning document which specifically author-ises the trustees to buy such insurance; a generalpower or duty to insure the charity’s assets is notsufficient. Any change to a governing instrumentto include such a power must first be cleared withthe Charity Commission. If you don’t want to usethis power immediately it is possible to make

11


provision in the governing instrument by includ-ing the phrase ‘Subject to the prior approval ofthe Charity Commission, provide indemnity in-surance …’. You would then have to seek theCommission’s written approval if you wanted toactivate this clause at a later date

• equipping yourselves to be prudent and efficientmanagers of all the risks involved in running abuilding through regular training. This is mostimportant of all. Community Matters will bepleased to advise you and can provide training(address on page 25)

If you do decide to become an incorporated body,however, it is unwise to assume that incorporationitself is a blanket solution to the problems of per-sonal responsibility of committee members. Becom-ing a limited company is a big step and carries withit specific responsibilities of its own, as seen below.It is important to be certain that the organisation iscapable of honouring these responsibilities beforeregistering. Your finance person, for example, willbe required to prepare the accounts in accordancewith statutory guidelines (although this is also thecase with unincorporated charities). Your annual re-turns must be submitted properly and on time, other-wise fines may be incurred; and perhaps most impor-tant of all, if you act in breach of trust individualcommittee members may still be held personally liable.

Incorporation can nevertheless be of benefit, andgood practice must be to get some training in therequirements of being a limited company if youdecide to take this route. Community Trading Serv-ices will be pleased to advise you and can help withregistration and provide appropriate training (ad-dress on page 25).

There are two existing kinds of incorporatedbody appropriate for an organisation running a com-munity building: a company limited by guaranteeand an industrial and provident society. In additionPart VII of the Charities Act, 1993 provides for theincorporation of the trustees of an unincorporatedbody (conferring an independent legal personalitybut not limited liability). The trustees of any type ofregistered, exempt or excepted charity can apply fora certificate – the Charity Commissioners will con-sider each case individually. Applications are made

on form CHY 1184 and need to be submitted with anumber of accompanying documents, including acopy of the governing document. Full details aregiven in the Commission’s leaflet CC43: Incorpora-tion of Charity Trustees.

For more details of the pros and cons of incorpo-rating see Community Matters’ information sheet14 Incorporation and Community Associations.

COMPANIES LIMITED BY GUARANTEEA company limited by guarantee is an independentlegal entity established under the Companies Actswhich has members instead of shareholders. Themembers elect a board of directors (in most volun-tary organisations this will be known as the manage-ment committee) at the AGM and pledge or guar-antee a sum of money, usually no more than £5. Thispledge is the limit of individual liability on any ofthe members. Being elected from the members, thedirectors (committee members) are thus also pro-tected in terms of liability so long as they do not actin breach of trust, do not act negligently or crimi-nally, or financially mismanage the company – inparticular do not run the company when they knowthat it is likely to be wound up for insolvency(wrongful trading).

A limited company can enter into legal agree-ments and own or lease property. It also normallyfinds it easier to make other commercial and finan-cial arrangements such as borrowing money.

In return for these advantages the law requiresthat a limited company fulfils the demands of theCompanies Acts. In particular this means submit-ting accounts prepared in a specified way, in accord-ance with the Companies Act, 1985. For furtherdetails on charitable companies see page 78. A lim-ited company is also required to give other informa-tion to the Registrar of Companies about its activi-ties and directors, both annually and when anychanges are made. There is a fee for submitting theannual return; and the costs of setting up a com-pany, which will require the services of a solicitor,can be relatively high. You will also have to admin-ister your membership records and meeting proce-dures in specified ways in order to conform to theCompanies Acts.

12


A governing instrument of a company is in twoparts – the memorandum and the articles of association– which set out the objects of the company, its powersand the extent of members’ liability together with rulesfor meetings and election of directors and also for theproduction of accounts. As mentioned on page 10,model memorandum and articles for a communityassociation are available as part of an incorporationpackage from Community Trading Services Ltd.

There will be a continuing obligation on thedirectors to observe the technical requirements ofcompany law in relation to such matters as ac-counts, resolutions, annual returns, qualifications ofdirectors and liquidation.

A company limited by guarantee can also applyfor charitable registration, and must do so if itsobjects are charitable. It will then also have to makeannual returns to the Charity Commissioners andmeet other additional requirements like any otherregistered charity. Model memorandum and articlesfor charitable companies are available from theCharity Commission and the Charity Law Associa-tion (addresses on page 180).

Applications for company registration are made toCompanies House. Before applying for company reg-istration you need to check that the name you pro-pose for the association is not already in use. Youneed to send the signed memorandum and articles,details of directors (committee members), the com-pany secretary and address of the registered office (onform 10), a declaration of compliance with companylaw (on form 12), and form 30(5)(a) if your namedoes not include the word ‘limited’, together with athe registration fee (£20 in 2000/01).To repeat, makesure that you get help from a solicitor who under-stands charity law and voluntary organisations if youwant to register. Often the best of these are to befound in local law centres. National agencies includ-ing the National Council of Voluntary Organisationsand Community Matters also have access to goodlegal advice (addresses on page 25).

INDUSTRIAL AND PROVIDENTSOCIETIESAn industrial and provident society (IPS) also haslimited liability and is registered under the Indus-trial and Provident Societies Act, 1965.

An IPS has to have a minimum of three membersand carry out an industry, business or trade as well asbeing a co-operative society or acting for the benefitof the community. It is a mutual benefit society andmembership must be open to staff with all membershaving an equal say in running the society’s affairs.Members will contribute funds either as a loan or asshare capital and the rules have to place limits oninterest paid to members.

So long as the industrial and provident societyexists for the benefit of the community it may alsoqualify for charitable status as far as the InlandRevenue is concerned, but it cannot register withthe Charity Commission. This means that an IPScannot have a charity number, which may be adisadvantage when raising money. Properly auditedaccounts have to be submitted to the Registrar ofFriendly Societies. (At time of writing, the Finan-cial Services and Markets Bill was going throughparliament. When it becomes law, probably towardsthe end of 2000, responsibilities of the Registry ofFriendly Societies will transfer to the FinancialServices Authority. However, it is envisaged thatthe new legislation will not significantly change thelegal framework within with industrial and provi-dent societies operate.)

Registration can be expensive and can take sometime unless you adopt the model rules supplied bysponsoring bodies. A list of such bodies is availablefrom the Registrar (address on page 25).

To register as an industrial and provident societyyou will need to fill in Form 617, available from theRegistry of Friendly Societies, check that yourname, or one similar, is not already registered andsend your constitution with the current fee to theRegistrar. This can either be done directly orthrough a sponsoring body. Whilst the fee through asponsoring body is considerably lower there will be aseparate charge for handling your application.

Although there are some industrial and provi-dent societies running community buildings, thelarge majority of organisations seeking incorpora-tion register as companies limited by guarantee.

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CHARITABLE STATUS

An organisation is deemed charitable at law if all itsobjects or purposes are charitable. A purpose cannotbe charitable unless it is for the public benefit. Itmust be of actual benefit and must benefit the publicas a whole or a sufficient section of the public.

The four historically recognised categories of le-gally recognised charitable activity are:• the relief of poverty• the advancement of religion• the advancement of education• other purposes beneficial to the communityThe Charity Commission is conducting an ongoingreview of the Register of Charities to ensure thatdefinitions of charity are up to date with today’ssociety and now also recognises the relief of unem-ployment and urban and rural regeneration as chari-table purposes. It is likely that more purposes will berecognised as charitable as the review continues.

An organisation with objects such as those setout in Community Matters’ model constitution ischaritable and has a duty in law to apply for registra-tion to the Charity Commissioners. Indeed there isan obligation on most charities to register. The ex-ceptions are those charities meeting all the follow-ing conditions: having no permanent endowment,no interest in property, and a total annual incomefrom all sources which is less than £1,000. Otherexceptions include some voluntary schools, somesmall funds of the Scout and Guide Associationsand some charities for the advancement of religion(for further details see CC22: Registration of ReligiousCharities). Excepted charities are in most cases stillsubject to other requirements of the Charities Acts.A number of charities are exempt from registeringand cannot register voluntarily. These include in-dustrial and provident societies, grant-maintainedschools and higher education corporations.

The law governing charities is set out in theCharities Acts, 1992 and 1993. For further informa-tion see The Charities Acts 1992 and 1993, publishedby the National Council for Voluntary Organisa-tions (NCVO) and Community Matters’ Informa-tion Sheet no 23 (see page 26).

ADVANTAGES OF CHARITABLEREGISTRATIONThere are a number of advantages in registering as acharity. There are considerable tax reliefs in thespheres of income tax and corporation tax, stampduty, capital gains tax, inheritance tax, and to someextent value added tax (see chapter 6). In additiontax can be recovered on all donations to charitiesvia payroll giving and covenants, and through GiftAid. Charities also benefit from mandatory and, insome cases, discretionary business rate relief (seechapter 6). Having a charity number also helps con-siderably with fund-raising as many grant makingtrusts and local authorities only give to registeredcharities.

REGISTRATIONApplications for registration as a charity are madeon form APP1, which must be submitted with sup-porting documentation including evidence of youractivities, your governing document with proof thatit has been incorporated/executed or adopted, cop-ies of up to three years’ financial accounts if avail-able, and a completed form DEC1 – trustees’ decla-ration. Full details relating to registration (includingforms APP1 and DEC1) are given in the CharityCommission’s very useful (and free) pack Starting aCharity and Applying for Registration. The applicationform is quite lengthy and you may need assistance incompleting it: a list of useful organisations is givenin CC21 Starting and Registering a Charity. Registra-tion time has been reduced considerably and nowtakes an average of two months. If you adopt theCommunity Matters model constitution, the proc-ess may be even shorter, as the wording of the rel-evant sections has been approved by the CharityCommissioners.

ACTIVITIES INCOMPATIBLE WITHCHARITABLE STATUSThere are a number of circumstances where acharity’s management committee members (trustees)could be held to be in breach of trust, including thefollowing:

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SUMMARY OF ACCOUNTINGAND OTHER REQUIREMENTS

FOR REGISTERED CHARITIES INTHE CHARITIES ACT, 1993

Gross income or total expenditure not exceeding £10,000

• Annual accounts to be kept and submitted to the Charity

Commissioners on request

• A simplified annual return to be submitted to the Charity

Commissioners

• No audit or independent examination requirement

• Annual report to be prepared, and submitted to the Charity

Commissioners on request

• Accounts to be available to the public on request

Gross income not exceeding £100,000 (but over £10,000 gross

income or total expenditure)


Commissioners

• Annual return to be submitted to the Charity Commissioners

• Independent examination or audit to be conducted

• Annual report to be submitted to the Charity Commissioners


Gross income or total expenditure not exceeding £250,000 in

current or either of the previous two financial years (but over

£100,000 gross income)


Commissioners


• Independent examination or audit to be conducted



Registered charities with gross income or total expenditure over

£250,000 in current or either of the previous two financial

years


Commissioners


• Audit to be conducted



NB: The above only relates to unincorporated charities and not tocharitable companies accountable under the Companies Act,1985. It does not cover exempt or unregistered charities.Further guidance can be found in the Charity Commission’s book-lets CC51, CC52 and CC53 (address on page 25).

• unacceptable political activity• trading activities other than those permitted un-

der the charity law, which include: the sale ofgoods made by the charity’s beneficiaries, do-nated goods, and goods or services that form partof the organisation’s charitable work; trading an-cillary to the charity’s primary purpose (for ex-ample selling drink in a theatre bar to audiencemembers); running a charity lottery (see page116); small scale fund-raising events (see page99)

• personal gain on the part of any of the trustees(there is no problem in charity trustees of a vil-lage hall, or of some other charity which is in-tended to benefit the whole community enjoyingthe benefits of that charity as members of thecommunity)

It is notoriously difficult to define what is and whatis not unacceptable political activity as far as charitylaw is concerned. By and large, however, if it isdirectly connected with the main charitable pur-poses of the organisation and not of a party politicalnature, much political activity with a small “p” isallowable. The Charity Commissioners bookletsCC9: Political Activities and Campaigning by Charitiesand CC9a: Political Activities and Campaigning byLocal Community Charities provide guidance on theextent to which charity trustees may engage in po-litical activities. As the guidelines are derived fromgeneral principles rather than court judgments, theywill be kept under review by the Commission.

Charity law does not permit charities to carry outa trade on a substantial or regular basis simply for thepurpose of raising funds. This includes running aregular bar in a community building. If this is one ofyour activities then you will have to set up a separatenon-charitable social club or trading company torun it. This separate company will be wholly ownedby the charity and charged a rent for the bar space.Its profits can be covenanted back to the charity atthe end of the year (see chapter 7).

In most cases an employee of a charity cannot beappointed as a trustee. Exceptions are if there is aspecific authority enabling the appointment in: thecharity’s governing document; a Scheme or Order ofthe Charity Commissioners; or some statutory

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WHOSE BUILDING? – FORMS OF TENURE FORCOMMUNITY BUILDINGS

authority eg in relation to school governors. Forfurther information see the Charity Commissioners’booklet CC11 Remuneration of Charity Trustees.

OBLIGATIONS OF CHARITABLEREGISTRATIONThe members of the main, governing committee ofa charity are managing charity trustees. They haveto ensure that certain requirements of the CharitiesActs, 1992 and 1993 are fulfilled as follows:• they must act in accordance with the charitable

purposes of the organisation• they must act in concert with the other trustees• they must treat the beneficiaries of the charity

fairly, making sure that only those who are enti-tled, benefit

• they must have proposed changes to the govern-ing instrument agreed by the Charity Commis-sioners

• they must keep proper books of account and pre-pare consecutive statements of account, havethem audited or independently examined and, ifthe charity’s annual income or expenditure ex-ceeds £10,000, submit them annually to theCharity Commissioners in accordance with theaccounting framework for charities which con-sists of Part VI of the Charities Act, 1993, theCharities (Accounts and Reports) Regulations1995 and the Charities SORP

• if the charity’s annual income or expenditure

Having decided what kind of organisation you needto be, and how the legal right to hold property isachieved, you must now consider the various op-tions for holding that property. Basically there arethree legal ways:• buying the property• entering into a lease with the owner• entering into a use and occupation licence with

the owner

exceeds £10,000, they must submit an annualreport to the Charity Commissioners in accord-ance with the regulations and complete an an-nual return giving information about the trusteesand the charity

• they must follow prescribed procedures in anydisposal of land and buildings

• they must ensure that any fundraising activitycarried out by or on behalf of the charity is prop-erly undertaken and that all funds collected areproperly accounted for

• they must not make public collections without apermit from the licensing authority (the Metro-politan Police Authority in London and the localauthority elsewhere); new rules relating to publiccharitable collections are included in Part III ofthe Charities Act, 1992 – at time of writing,there was no indication on when these might beimplemented

• they must ensure the fact that the organisation isa registered charity is printed on any documentsappealing for funds (including headed paper) anda range of financial documents includingcheques, invoices and receipts; it is probably sen-sible, although not actually required, to includethe charity number at the same time; charitieswith an income of less than £10,000 per annumare exempt from this requirement.

More is said about the responsibilities of trustees onpage 22.

BUYINGThere are two ways of buying a property. You can

buy the freehold, which means you own thepremises outright; or you can buy a long leasehold,for example 99 years, which is then yours to sell on.It will of course decrease in value as the length ofthe lease decreases. The leasehold is likely also toinclude legally enforceable covenants to keep theproperty in good repair.

If you are lucky enough to have sufficient fundsthen buying your own community building, or

16


indeed building it in the first place, will give youlong term security. If you need a mortgage to raisepart of the purchase price you could well find thatany lending institution will require an individualwith some means to act as a guarantor.

It has already been pointed out above that anunincorporated body cannot hold property either asfreehold or leasehold. This can be overcome eitherby becoming a company limited by guarantee, or byvesting the property either in a custodian trustees orholding trustees, or in the Official Custodian forCharities. For details see pages 11 and 17.

Community Matters has produced a model formof conveyance and trust deed for unincorporatedbodies to use when purchasing their own premises,printed on pages 19–21. You will still need to con-sult a solicitor, and adapt the model to suit your ownlocal circumstances.

LEASINGIf you take out a lease on a building you have anexclusive right to occupy it and the lease sets out thedetails of what both landlord and tenant agree to dowith respect to the building. A lease is subject to theprovisions of the Landlord and Tenant Act, 1954.This gives security to tenants in business premises,which is usually taken to include community build-ings. In brief, this means that if the landlord servesnotice on the tenant, the tenant can apply to thecourts for a new tenancy which, unless the tenanthas defaulted in the rent or the landlord needs thepremises for his/her own use, will usually be granted.

Tenancies not subject to the terms of the Act arethose granted for less than six months where thetenant has either been in occupation for less thantwelve months, or where there is no provision forextension or renewal; and tenancies which bothparties agree shall be outside the Act. CommunityMatters recommends that landlords should not at-tempt to remove the security of tenure provisions ofthe Act, as many funders will only grant aid buildingrefurbishment or redecoration costs where the or-ganisation has adequate security of tenure.

The details of a lease are crucial and there are anumber of provisions that are essential for charita-ble community associations. Some of the most

important details are as follows:• duration: leases can be weekly, monthly, annual

or for a fixed number of years. Community Mat-ters recommends a lease with as long a term aspossible, even though this can represent a sub-stantial commitment. If for any reason you wishto vacate the building before the term of the leasehas expired you are still responsible for payingthe rent up to the end of the agreed term unlessyou can either:– assign the lease: i.e. pass it on to another per-

son – this is only possible if the lease does notexclude it; or

– surrender the lease: i.e. give it back to thelandlord, who agrees to waive the remainingterm. This is normally only possible if it iswritten into the lease in the first place. If thisis the case it will usually be with a period ofnotice – normally three or six months.

• responsibility for repairs: many leases make struc-tural repairs the responsibility of the landlordand other repairs and decoration the responsibil-ity of the tenant. Many leases also stipulate thatthe building must be handed back to the landlordin the same condition as it was at the beginningof the lease. If this is the case it is vital to have asurveyor produce a detailed schedule of condi-tion before signing the lease and have the land-lord agree, in writing, that the schedule is accu-rate. At the end of the lease this will enable youto define accurately what responsibility for rein-stating any dilapidations you may have. Withoutsuch a schedule the expenses at the end of a leasecan be enormous.

• rent levels: make sure you get the best possibledeal; this may be a nominal (or ‘peppercorn’)rent – i.e. a small amount just to show that thelease is properly made; local authorities are tend-ing to say that nominal rents are no longer possi-ble because they are required by law to get thebest possible rent in the market; however, theyare in fact still allowed to dispose of land orpremises for recreational purposes at less thanbest price and without restrictions on length oflease.

• rent reviews: long leases often include rent re-

17


views enabling the landlord to change the rent atregular intervals. If this is the case it is importantto negotiate a break clause so that if the rent israised beyond your means you can surrender thelease without any penalty.

• exclusion clauses: some landlords, including localauthorities, try to include clauses in a lease ex-cluding it from sections 24 – 28 of the Landlordand Tenant Act, 1954; this means that the or-ganisation loses its legal right to extend the leasewhen it expires. Exclusion clauses should there-fore be resisted.

• independent arbitration: conflicts could arise at anytime in connection with the terms of the leaseand it is sensible to have a clause written into itdetermining in advance how such conflicts are tobe resolved.

Community Matters has produced a specimen leaseand model declaration of trust for unincorporatedbodies to use when leasing premises and vestingcustodianship in custodian or holding trustees. Aswith the conveyance you will still need the servicesof a solicitor and the document will need to beadapted to suit your own local circumstances. Bothdocuments are available from Community Mattersand are included in Community Matters’ publica-tion Occupying Community Premises.

When negotiating a lease with a local authorityit would be worth contacting your local council forvoluntary service, rural community council or localfederal organisation to see if other organisationshave already negotiated a lease and to use that as thebasis for your own negotiations. If several organisa-tions in your area are trying to negotiate a lease itwould be sensible to try and do it collectively.

Be careful to ensure that provisions relating tothe management of your organisation and the build-ing are not included in the lease. If the authoritywishes to make conditions about building manage-ment these should be negotiated separately as amanagement agreement (see page 23).

HOLDING A PROPERTY ON LICENCEA licence is a sort of mini lease. It is a simpler formof tenure and is not subject to the Landlord andTenant Act, 1954. Nevertheless it will still set out

the obligations of both the landlord and the licen-see. A licence usually allows occupation for ashorter period than a lease, and the tenant’s respon-sibility for repairs, maintenance and decorationshould be less onerous. Protection from eviction onexpiry is not available, but by the same token sur-rendering the licence is usually much simpler.

A licence is still a legal contract, however, and socannot be held by an unincorporated body exceptvia a custodian or holding trustees.

APPOINTING CUSTODIAN OR HOLDINGTRUSTEES TO HOLD THE PROPERTYIf you decide that you would prefer to be an unincor-porated body then you must appoint a custodiantrustee, up to three holding trustees or vest yourproperty in the Official Custodian for Charities.

Appointing a Custodian TrusteeAn unincorporated organisation may appoint a cor-poration such as a bank or other corporate body toact as the custodian trustee of its investments orland. Such a body is likely to charge for its services.If a custodian trustee is appointed to hold invest-ments of a charity, land belonging to the charitywould also be invested in it.

Appointing Holding TrusteesIf you decide to appoint holding trustees you mustappoint at least three people to hold the lease orfreehold of your community building on your behalf.They may be responsible local people but it is rec-ommended they should not be members of the man-agement committee of the community organisation.This is to avoid often serious conflicts of interest.They have no role in managing the building. Theyhold the legal documents relating to the building,either the lease or the title deeds, and may alterthem or relinquish them only on the lawful instruc-tions of the managing trustees – in other words themain committee of the unincorporated body.

There should always be at least three holdingtrustees, which means that if one leaves the area ordies new trustees need to be appointed. This meansmaking a new vesting deed. This procedure can be alot of bother and, if neglected, it can incur consider-

18


able expense as well. It can be avoided by transfer-ring the custodial trusteeship of the building to theOfficial Custodian for Charities (address on page25). Unless there are onerous covenants in the leasethere will normally be no problem with this arrange-ment and, furthermore, there is no fee. The CharityCommissioners prefer this option.

Procedure for Appointing Custodian andHolding TrusteesOnce the custodian trustee or holding trustees havebeen agreed, a solicitor should draw up a convey-ance or lease, including a deed of trust, along thelines of the models that follow. This is then agreedby the committee and signed by the trustees. Itshould be stamped by the local office of the InlandRevenue. The property is now vested in thetrustee(s) for the benefit of the organisation. Chari-ties are exempt from stamp duty on conveyancesand transfers and lease duty on the annual rentalreserved on a lease.

Procedure for Vesting in the Official Custodianfor CharitiesIf you decide to take this course you must first carryout the procedure above to vest the property incustodian or holding trustees as it is not possible fora lease or conveyance initially to be vested in theOfficial Custodian. The Official Custodian will notaccept custodianship of investments.

At draft stage a copy of the trust deed and lease/conveyance should be submitted to the CharityCommissioners for approval and possible amend-ment. This is to ensure that it contains nothing thatwould prevent the Official Custodian from actingon behalf of the organisation.

When the documents have been approved andstamped the custodian or holding trustees make anapplication to the Charity Commissioners enclosingthe trust deed and lease/conveyance. Following ap-proval the local trustees drop out and the OfficialCustodian for Charities becomes the custodian trus-tee.

If you wish to transfer custodianship to the Offi-cial Custodian at a time other than on taking outthe lease or purchasing the property, the trusteessimply apply to the Charity Commission for an or-der transferring the custodian trusteeship fromthemselves to the Official Custodian.

Community Matters is available to offer adviceand assistance in all these matters. CommunityMatters’ publication Occupying Community Premisescovers all aspects of owning or renting property inmuch greater detail.

MODEL DOCUMENTS FOR ACQUISITIONOF PROPERTYCommunity Matters has prepared model forms ofconveyance and lease for community buildings foruse by unincorporated associations. The convey-ance is reproduced overleaf; the model lease is avail-able from Community Matters. Clearly it is impossi-ble for one form of words to suit every individualsituation so you must check it for variations in localcircumstances; but they are a very helpful startingpoint for you and your solicitor when buying orleasing premises.

If you are buying a building use the followingmodel:

19


CONVEYANCE OF LAND FOR THE PURPOSES OFA COMMUNITY CENTRE DECLARING THE TRUSTS

IN A SCHEDULE

THIS CONVEYANCE is made the day of

between of

in the County of (hereinafter called “the Vendor”) of the one

part and of

in the County of (hereinafter called “the Trustees”) of the other

part whereas the Vendor is seised in fee simple in possession free from encumbrances of the

hereditaments hereinafter described and has agreed to sell the same to the Trustees at the price of

£ and whereas the trustees have requested the

Vendor to convey the said hereditaments in the manner and upon the trusts hereinafter appearing

now this conveyance witnesseth that in pursuance of the said Agreement and in consideration of

the sum of £ now paid by the Trustees to the Vendor (the

receipt whereof the Vendor hereby acknowledges) the Vendor as Beneficial Owner hereby conveys

unto the Trustees all that piece or parcel of land situate at

in the County of and having a frontage to

of

or thereabouts which piece or parcel of land is with the dimensions and abuttals thereof more

particularly delineated and described in the plan drawn hereon and thereon coloured pink (together

with the building(s) erected or to be erected thereon) to hold the same unto the Trustees in fee

simple upon the trusts and subject to the powers and provisions set out in the [First] Schedule

hereto.*1

The Vendor hereby acknowledges the right of the Trustees to production of the deeds and

documents specified in the Second Schedule hereto and to delivery of copies thereof and hereby

undertakes for the safe custody thereof.

It is hereby certified that the transaction effected by this instrument is a conveyance to persons

established for charitable purposes.2

In Witness whereof the parties hereto have hereunder set their hands and seals the day and year

first above written.

______________________________________ ______________________________________

______________________________________ ______________________________________

______________________________________ ______________________________________

Note 1 If there is only one Schedule the word in the brackets should be omitted.Note 2 i.e. persons acting as trustees of a charity

20

THE FIRST SCHEDULE

1 The property hereby conveyed (hereinaftercalled “the Trust Property”) shall be held upontrust as a Community Centre for the use of aCommunity Association formed to promote thebenefit of the inhabitants of ________________

_______________________________________

and the neighbourhood (hereinafter called “thearea of benefit”) without distinction of sex or ofpolitical, religious or other opinions by theadvancement of education and the provision offacilities in the interests of social welfare forrecreation and leisure-time occupation with theobject of improving the conditions of life for thesaid inhabitants.

2 The management and control of the TrustProperty shall be vested in the GeneralCommittee of the ________________________

______________________________________

Community Association (hereinafter called “theCommittee”) and the Committee shall providethe Trustees with sufficient funds to meet allsuch expenditure in connection with the TrustProperty as the Trustees may be liable for.

3 If the Committee by a majority decides at anytime that on the grounds of expense or otherwiseit is necessary or advisable to discontinue the useof the Trust Property in whole or in part for thepurposes hereinbefore indicated, it shall call ameeting of all members of the _____________

________________________________________

_______________________________________

Community Association and of the inhabitantsof the area of benefit of the age of 18 years andupwards of which meeting not less than 21 days’notice (stating the terms of the resolution to beproposed thereat) shall be posted in aconspicuous place or places in the area of benefitand advertised in a newspaper circulating in thearea of benefit, and if such decision shall be

confirmed by a majority of those present andvoting at such meeting all or any part of theTrust Property may be let or sold with suchconsent as may be required by law. All moneysarising from such lettings or sale (aftersatisfaction of any liabilities properly payablethereout) shall be applied in the acquisition ofother premises approved by the Committee andshall be held upon the trusts for the purposesand subject to the provisions hereinbefore setforth (including this power) or as near theretoas circumstances will permit or towards suchother charitable purposes for the benefit of theinhabitants of the area of benefit as theCommittee may decide and as may be approvedby the Charity Commissioners for England andWales.

4 The number of Trustees shall be not less than_____________________________________

nor more than _________________________ *

5 A Trustee shall cease to be a Trustee if he or shesends to the Secretary for the time being of theCommittee a notice in writing of his or herintention to resign and his or her resignation isaccepted by the Committee or if he or she isadjudged bankrupt or makes a composition orarrangement with his or her creditors or if he orshe is disqualified from being elected as or beinga Trustee by reason of corrupt or illegalpractices.

6 The power of appointing a new Trustee or newTrustees of this Deed shall be vested in theCommittee.

* In the vacant spaces should be inserted the minimumand maximum numbers of trustees stated in yourconstitution. If it does not specify these, 'not less thanthree nor more than four' is recommended.

ACRE has a similar document suitable for Village Halls


21

THE SECOND SCHEDULE(Here insert particulars of Deeds included in acknowledgement.)

RESPONSIBILITIES OF TRUSTEES

The majority of organisations managing communitybuildings will be charitable and therefore need toregister with the Charity Commission. This techni-cally makes members of the general committee orother main committee managing the organisationthe ‘trustees’ of the charity (even though they willnot always be called trustees within the organisa-tion). In fact, as described above, they are morecorrectly called managing trustees and will haveappointed custodian or holding trustees to hold thebuilding on their behalf.

The duties of the custodian or holding trusteesare simply to hold the assets of the organisation and

carry out the instructions of the managing trusteesso long as they are not in breach of the trusts of thecharity.

The duties of the managing trustees are far moreonerous. Managing trustees carry the full legal re-sponsibility for the affairs of the charitable organisa-tion. If things go wrong it is the managing trusteeswho are ultimately responsible. Detailed require-ments in the administration of charities arise fromthe Charities Acts, 1992 and 1993 and charitablebodies should make themselves familiar with thedetails. The general legal responsibilities of trustees,in summary, are as follows:


22


RESPONSIBILITIES OF TRUSTEES

A Duty to be Informed• to inform themselves of the business of the organisation

and in particular:– study the constitution, memorandum and articles of

association or trust deed;– understand the purposes of the organisation, its

powers, its management structures and how moneyand other assets are looked after;

– find out what assets the organisation has and whoholds them;

– study past accounts, minutes of meetings and anyreports about the organisation;

all these activities are particularly important for newtrustees or committee members to ensure themselves thatthere have been no breaches of trust in the past, for whilstnew trustees are not responsible for past breaches, they dohave a duty to ensure that they do not continue and mayhave to cope with the results;

A Duty of Care• to carry out their duties with reasonable care; this

means acting with the same prudence and vigilancethat they would apply in managing their own affairs oras they would apply if the organisation was their ownbusiness; this duty of reasonable care must be carriedout in particular ways:– it is a positive duty requiring action on the part of

the trustees, for example to satisfy themselves of theaccuracy of the accounts or the quality of the staff; iflosses are incurred through the action of staff, thetrustees will not be free of liability if they havecarried out their duty of care in an inactive way;ignorance of salient facts is no excuse;

– there must be an awareness, on the part of trustees,of the relevant financial and legal matters to do withthe organisation; this awareness should covermatters such as their responsibilities as employers,owners of premises and investors of funds;

– trustees need not be experts on the above matters,but know enough to know when expert adviceshould be sought, and whilst the seeking and takingof such advice will not necessarily protect them froma claim that they have failed in their duties, it willshow evidence of having acted with care anddiligence;

Overall Responsibility for Assets• trustees have overall responsibility for the assets of the

organisation and in particular:– to ensure that proper accounts are kept and

submitted to the Charity Commissioners (and to theRegistrar of Companies or Registrar of FriendlySocieties where appropriate);

– to ensure that the accounts are independentlyexamined (for registered charities with gross incomeor total expenditure between £10,000 and £250,000)or professionally audited (for registered charitieswith gross income or total expenditure over£250,000);

– to be aware of different kinds of funds: permanentendowments of which only the interest may be spentwithout permission of the Charity Commissioners;general funds applicable to all the objects of theorganisation; and committed funds which can onlybe spent on the purposes for which they were given;

– to ensure that land and buildings owned by thecharity are properly insured and maintained; toreview, from time to time, the suitability of theproperty for the purposes of the organisation;

– to invest funds in a prudent manner and not to takerisks; to invest only in such a way as permitted bythe constitution or trust deed; to diversifyinvestments as far as this is appropriate; to avoidspeculation; to seek professional advice; to reviewinvestments regularly;

Personal Responsibility – despite some powers ofdelegation• trustees’ responsibility is a personal responsibility and

the trustees are jointly liable for the administration ofthe organisation; leaving the others to take thedecisions does not relieve a trustee from liability; thispersonal responsibility does not, however, preventtrustees from delegating duties for example:– they may delegate the implementation of their

decisions to staff or agents so long as the trusteesexercise proper care in making appointments andsupervising them once appointed;

– they may delegate decision making powers tocommittees and sub-committees as defined in theconstitution; if they fail adequately to monitor and

23


supervise the workings of the sub-committees theymay still be liable for losses incurred as a result ofbad management on the part of the committees towhom authority was delegated;

A Duty to Avoid Conflict of Interest• trustees have a responsibility to avoid conflicts

between their personal affairs and their duties astrustees; this means that trustees may not:– receive benefits in kind, even if otherwise they

would qualify as a beneficiary of the charity;– buy or sell property from the charity;– appoint one of their number to a paid office in

another organisation;

– receive payment, other than reasonable out ofpocket expenses;

exceptions to these restrictions are only allowable ifexpressly permitted in the constitution;

A Duty to Act in the Best Interests of the Organisation• in carrying out their responsibilities trustees have an

overriding responsibility to act in the best interests ofthe organisation and to protect its good name. Thusthey should not permit any activities which wouldbring the organisation into disrepute. This also meansthat even if they are appointed to be trustees by thelocal authority or another body, their actions astrustees must be in the interests of the charity and notin the interests of their appointing body.

Many community organisation committee membersare unaware of the full extent of their responsibili-ties and liabilities as charity trustees and very feworganisations arrange any information or trainingsessions for them. This is definitely not good prac-tice and it is recommended that regular trainingsessions for committee members are held. Thesesessions should cover all aspects of the responsibili-ties as outlined above. They need to be regular, asthe turnover of committee members can be high.

Induction training for new trustees or committeemembers is crucial. It is all too common for newtrustees to be expected to know all about the organi-sation and their responsibilities with virtually nopreparation or information. One good way of tack-ling this is to devote all or part of the first meeting ofthe management committee after the AGM to aninformal induction session, which enables everyoneto re-examine why the organisation exists, what it

does, how it works and what the committee’s re-sponsibilities are. At the very least an informationpack should be prepared for all new committeemembers. It should contain copies of the followingdocuments:• the organisation’s governing instrument• standing orders (if any)• the lease or licence agreement• accounts for the last three years• annual reports for the last five years• any major policy documents• minutes of the management committee for the

past year• specimen job descriptions and contracts of em-

ployment (if any)• Managing Your Community Building!Community Matters is happy to discuss training fortrustees.

MANAGEMENT AGREEMENTS

Many community buildings are leased from localauthorities who may also give a grant towards therunning costs, pay some of the expenses directlyand/or provide help in kind. It is increasingly com-mon for the local authority to draw up a manage-

ment agreement, designed to clarify the respectiveobligations of the authority and the association. Forexample, the authority may cover staffing, runningcosts, rates, repairs and maintenance, training andsupport, in exchange for the association providing

24

CONSTITUTIONAL AND ORGANISATIONAL CHECKLIST

Has your organisation checked that:• you have the most suitable type of organisational structure for your needs• your committee members know their responsibilities• you organise trustees/directors/committee members’ training• your constitution is adequate and up to date, and has enough detail• the objects of your organisation are exclusively charitable – if so have you registered with the Charity

Commissioners (you are required by law to register if you have charitable objects)• you have trustee liability insurance cover (there needs to be the power in your governing document to authorise

the purchase of such insurance)• you are aware of the requirements of the Charities Acts, 1992 and 1993• you have the right legal agreements on your building; if the answer is ‘yes’ when did you last check?• if you have a bar or other significant trading activity they are separated off from the main organisation (see

chapter 7 for further information)• you have vested the building in custodian trustees; and you have considered vesting it with the Official Custodian

for Charities• in the case of a management agreement – it is separate from your main lease or licence; and you have negotiated

the right agreement for your building


services that meet local needs and follow good prac-tice in democratic management, equal opportuni-ties, planning, financial management and monitor-ing. The agreement is in addition to the lease,which will give the association the right to occupythe building and provide security of tenure.

Such detailed management agreements, whichare set out in a document to be signed by representa-tives of the local authority and of the communityorganisation, tend to be more prevalent in areaswhere the local authority has a clear policy of sup-porting community associations and has developedpartnerships for providing services to meet commu-nity needs.

There are two general points to note: the associa-tion’s management committee members are usuallyelected annually, and so the agreement will needreviewing annually, particularly in relation to signa-tories; and the agreement should not include anyconditions that would compromise charity law orrestrict the association’s autonomy or charitable ob-jects.

As long as you discuss each clause of a manage-ment agreement in detail and negotiate changesthat you think are necessary, management agree-ments can be a useful aid in managing the building.Most local authorities manage to keep abreast ofgood practice and the management agreement is ameans of helping you, the management committee,to do the same. Indeed it can become the occasionof useful training for committee members.

It is important, however, to be sure that all thethings normally in a management agreement are notput into the lease. That simply complicates things asthe lease is a legal document under the Landlordand Tenant Act, 1954. If the two documents arelinked or indeed one and the same, you could losethe right to occupy the building simply by fallingdown on your cleaning and caretaking arrange-ments! They may cross-refer but it is important toensure that the continuance of one is not dependenton the continuance of the other.

For more information about management agree-ments – including those where there is no lease – seeOccupying Community Premises.

25


Woodfield HouseTangierTauntonSomerset TA1 1BL(Responsible for national, localand overseas charities based inparts of Wales, southern andsouth western counties)

☎ (for all offices)0870 333 0123

[email protected]

web sitewww.charity-commission.gov.uk

Community Trading ServicesLtd (CTS)8/9 Upper StreetLondon N1 0PQ

☎ 020 7226 0189e-mailcommunitymatters.org.uk

web sitewww.communitymatters.org.uk

Community Matters8/9 Upper StreetLondon N1 0PQ

☎ 020 7226 [email protected]

web sitecommunitymatters.org.uk

USEFUL ADDRESSES

ACRE(Action with Communities inRural England)Somerford CourtSomerford RoadCirencesterGloucestershireGL7 1TW

☎ 01285 653477e-mail [email protected] sitewww.acreciro.demon.co. uk

Charities Aid FoundationKings HillWest MallingKent ME19 4TA

☎ 01732 520000

Charity CommissionHarmsworth House13-15 Bouverie StreetLondon EC4Y 8DP

☎ 0171 210 4556(Responsible for national, localand overseas charities based inLondon and South East Englandincluding East Anglia)

2nd Floor20 Kings ParadeQueens DockLiverpool L3 4DQ(Responsible for national, localand overseas charities based inthe Midlands, parts of Wales andthe north of England)

Companies HouseCrown WayMaindyCardiff CF4 3UZ

☎ 029 20 388588web sitewww.companieshouse.gov.uk

National Council for VoluntaryOrganisations (NCVO)Regent’s Wharf8 All Saints StreetLondon N1 9RL

☎ 020 7713 6161

☎ (helpline) 0800 798 798e-mail [email protected] site www.ncvo-vol.org.uk

Official Custodian for CharitiesCharity Support DivisionHarmsworth house13-15 Bouverie StreetLondon EC4Y 8DP

☎ 0870 333 0123e-mailfeedback@charity-

commission.gov.ukweb sitewww.charity-commission.gov.uk

Registry of Friendly SocietiesVictoria House30 KingswayLondon WC2B 6ES

☎ 020 7663 5025

26


FURTHER READING

Annual and Other GeneralMeetings –Information Sheet 68published by CommunityMatters

Are We Doing it Right? – anOrganisational Health Checkfor Management Committees ofCommunity Buildingspublished by CommunityMatters

Charitable Status and Registra-tion – Information Sheet 82published by CommunityMatters

Charities Acts 1992 and 1993– Information Sheet 23published by CommunityMatters

Committees and CommitteeProcedure – InformationSheet 18published by CommunityMatters

Community AssociationTrustees – InformationSheet 70published by CommunityMatters

Community OrganisationSubcommittees – InformationSheet 13published by CommunityMatters

Company Handbook andRegister for Voluntary SectorCompanies Limited byGuaranteepublished by Sinclair Taylor andMartin, available from SandyAdirondack

The Company Right or Wrong?– the Pros and Cons ofIncorporation for Charities andother Voluntary Organisationspublished by the NationalCouncil for VoluntaryOrganisations

Croner’s Management ofVoluntary Organisationspublished by CronerPublications

Getting on Board: Strategiesfor Finding and SupportingTrusteespublished by the NationalCouncil for VoluntaryOrganisations

The Good Trustee Guidepublished by the NationalCouncil for VoluntaryOrganisations

Incorporation and CommunityAssociations – InformationSheet 14published by CommunityMatters

Model Constitution for aCharitable UnincorporatedAssociation – GD3published by The CharityCommission

Model Constitution for aCommunity Associationsupplied with information sheet6a (for newly forming associa-tions) or 6b (for establishedassociations wishing to updatetheir constitution)published by CommunityMatters

Model Declaration of Trust fora Charitable Trust – GD2published by The CharityCommission

Model Documents for VillageHallsModel A – Freehold PropertyModel B – Leasehold Propertypublished by Action withCommunities in Rural England(ACRE)

Model Memorandum andArticles of Association for aCharitable Company – GD1published by The CharityCommission

Model Trust Deed andConveyance for CommunityCentres – Information Sheet 8published by CommunityMatters

Model Trust Deedpublished by the Charity LawAssociation

New Companies – CHN1published by Companies Regis-tration Office

Officers of the CommunityAssociation and Their Duties –Information Sheet 65published by CommunityMatters

27


One Stop Company Secretarypublished by ICSA publishing

Political Activities and Cam-paigning by Local CommunityCharities – CC9apublished by The CharityCommission

Political Activities by Charities– CC9published by The CharityCommission

Remuneration of CharityTrustees – CC11published by The CharityCommission

Responsibilities of CharityTrustees – CC3published by The CharityCommission

Responsibilities of CharityTrustees: A Summary – CC3(a)published by The CharityCommission

Setting Up a CommunityAssociation – InformationSheet 9published by CommunityMatters

Starting and Registering aCharity – CC21published by The CharityCommission

The Trustee Organiserpublished by the Directory ofSocial Change

Users on Board: BeneficiariesWho Become Trustees – CC24published by The CharityCommission

Voluntary But Not Amateurpublished by London VoluntaryService Council

The Voluntary Sector LegalHandbookPublished by the Directory ofSocial Change

Volunteers on ManagementCommitteespublished by The NationalCentre for Volunteering

All Acts of Parliament referred toin the text can be purchased fromthe Stationery Office.

Publishers’ addresses can befound on page 180.

28

29

33333333333333333333333333333333Staffing – voluntary

and paid

30

STAFFING – VOLUNTARY AND PAID

This chapter is about the people who work in or foryour community building, whether paid or unpaid.It is important to treat all your workers in a reason-able, humane and supportive manner. In this waythey will enjoy their work and get more from it andin so doing they will undoubtedly give more, so thecommunity building and all that goes on in it willalso gain.

Quite often people on management committeesof community buildings who ‘employ’ people,whether as paid staff or as volunteers, have a prettyantiquated view of how they should be treated. Ittends to vary between two extremes – either veryauthoritarian or very casual. Difficulties that inevi-tably arise are often dealt with summarily, or theyare studiously avoided. Neither of these approachesis satisfactory and both lead to serious problems withbad feeling abounding. There is often much back-biting and then, after a particular problem has re-ceded, the whole issue simplistically written off as apersonality clash.

This book takes the view that personality clashesneed hardly occur. They can be prevented by clearprocedures for all aspects of ‘people management’,an open and straightforward approach to problemsand a supportive attitude to all who work for thecommunity building. These measures will maximiseenjoyment and efficiency and minimise the difficul-ties that can so often be destructive.

Once again it is clarity that will stand you ingood stead in this sphere. Be clear about everything:what the worker is to do; what the terms are; whosupervises/supports the worker; what to do if thereare grievances; what the national insurance positionis; the kind of person to do each specific job. If youare clear and open about all these things (and haveproof of that clarity by having the important thingswritten down) – and, after all this, people still can-not do their work properly or get on with otherworkers, only then are you entitled to think you mayhave a real personality clash on your hands.

You may not like the term workers but it is usedto avoid the difficulty of thinking that all “workers”are paid which is what usually happens when the

term employees is used. In this chapter employeemeans someone who is paid a wage or salary to do ajob as opposed to volunteer or voluntary worker who isnot.

DIFFERENCES BETWEEN EMPLOYEESAND VOLUNTARY WORKERSThere are, of course, several other differences be-tween employees and voluntary workers, not onlythe fact of payment of a wage. For example the lawdemands that employees are treated in very specificways in certain matters. You may be surprised tolearn, however, that many aspects of what is some-times referred to as employment law apply equally tovoluntary workers just as to paid employees.

The assertion that it is good practice to treat allyour workers in a reasonable, humane and support-ive manner is in no way intended, however, to implythat the differences do not exist. Thus separate sec-tions follow for employees and for voluntary work-ers.

That does not quite deal with the matter. Therestill remains the difficult question: ‘are there differ-ences between one kind of volunteer and another?’In small community organisations running all man-ner of community buildings the vast majority ofvolunteers just sort of materialise. They are notformally recruited or indeed considered formally inany way. They turn up, they lend a hand and getmore or less involved depending on time availableand their ability to get on with other people. Someorganisations have a different kind of volunteer whoquite often is recruited formally and is supported bya range of more or less formal systems and proce-dures. It is this last category that most people willmore readily recognise as voluntary workers.

Much of what follows in the section on voluntaryworkers might be thought only to apply to this moreformal category of volunteers. Whilst there will al-ways be some volunteers whose relationship withthe community organisation is very informal – andthat is quite proper – it is the contention of thisbook that people in that category are or should befar fewer than is currently the case. It is important,

INTRODUCTION

31


EMPLOYEES’ AND EMPLOYERS’ RIGHTS ANDRESPONSIBILITIES

therefore, that every organisation with voluntaryworkers of any kind considers all that follows andactively tries to improve the procedures and ap-proach to all its workers.

A NOTE ABOUT FORMAL ANDINFORMALThere is much confusion about formality and infor-mality in the human relations aspects of voluntaryorganisations and, for that matter, within other or-ganisations that employ people. There is a view thatto be informal is better, more friendly, more humane

and therefore more productive. Depending on defi-nitions this book takes the opposite view – thatformal relations at work are more productive and infact more comfortable for workers, both voluntaryand paid. The definition is crucial, however. Thisbook takes formal to mean open, clear, organisedand well structured. It does not mean authoritarian,stiff, bossy or any of those other nasty qualities thatmany seem to mean by it. If your procedures fordealing with the people who work for your commu-nity building are formal in the positive sense every-one will benefit.

Employment Law is a term meaning a collection ofActs of Parliament and Regulations defining rightsand responsibilities of employers and employees.Some of this legislation is covered in other chapters,some has already been referred to in this chapter.There is quite a lot more and it will now be summa-rised.

A word of warning: the detail that is possible toinclude here might not be enough for any particularsituation that may arise in managing people withinyour community building. It is very important thatyou check the detail of any Act if you think, forwhatever reason, that you may not be getting some-thing right. You can either read the Acts them-selves, although there are a lot; or you can readabout their provisions in longer summaries that oth-ers have written. The most comprehensive place tolook is Reference Book for Employers published byCroner Publications. This is one of several guidesthat Croner’s produce. They are very comprehen-sive and you can also subscribe to an updating serv-ice. The only drawback is that they are very expen-sive. The Reference Book currently costs over £500.If you cannot afford to buy one perhaps your localcouncil for voluntary service, rural communitycouncil or local federal organisation has one you canrefer to. If not perhaps you can convince them tobuy one so that all the voluntary bodies in your areacan benefit.

EMPLOYMENT LAWTaking on employees, especially if you have notemployed anyone before, can seem a daunting pros-pect. If your organisation is unincorporated themanagement committee members will be the em-ployers and so they need to be aware of the basis ofemployment law and potential problem areas.

This chapter gives a basic introduction to someof the legislation and good practice involved inrecruiting and employing paid staff and volunteers.Community Matters’ information sheets 53-59cover some aspects in greater detail. Other sourcesof further information are given on page 53.

The main Acts of Parliament and Regulationsthat determine how employees should be treatedand therefore the employer’s responsibilities are asfollows:• Asylum and Immigration Act, 1996• Disability Discrimination Act, 1995• Disabled Persons (Employment) Acts, 1944 and

1958• Equal Pay Act, 1970• Employment Relations Act, 1999• Employment Rights Act, 1996• Health and Safety at Work Act, 1974• Human Rights Act, 1998• Maternity and Parental Leave etc Regulations,

1999

32


PART TIME WORKERSPeople who work part time (and this includes casualand freelance workers, but not anyone who is genu-inely self-employed) now have the general right notto be treated less favourably than a full-time workerin relation to the terms of their contract. For example,part time workers should generally have the right:• to the same basic rate of pay as workers doing the

same or comparable jobs on a full time basisunder the same type of contract, unless a differ-ent rate can be justified on objective grounds(e.g. profit-related pay)

• to receive the same hourly overtime rate, oncethey have worked more than normal full timehours

• to the same entitlements (pro rata) as full timecolleagues to contractual sick pay and maternitypay provisions, contractual annual leave andother leave, access to occupational pensions, andaccess to other benefits – unless such treatmentcan be shown to be objectively justified

• not to be treated less favourably in selection forredundancy simply because they are working parttime, unless this can be justified on objectivegrounds

• not to be excluded from training because theywork part-time

• to access career break schemes

NATIONAL MINIMUM WAGEUnder the National Minimum Wage Act, 1998 em-ployers have to have minimum hourly rates. At timeof writing these were:• £3.70 for workers aged 22 or above• £3.20 for workers aged 22 or above who:

• are within the first six months of starting workwith the employer

• have not previously been employed either bythat employer or by an associated employer,and

• have agreed to take part in accredited trainingon at least 26 days between the start of theiremployment or, if later, the day they enteredthe agreement, and the end of the six monthperiod referred to above

• £3.20 for 18-21 year olds and new workers whoare being trained.

There is no set rate for 16 or 17 year olds.For further information see Community Matters’

information sheet 58: National Minimum Wage.

WORKING TIME REGULATIONSThe Working Time Regulations 1998:• set a working time limit (including overtime) of

48 hours a week (calculated as an average over a17-week period)

• require employers to take all reasonable steps, inkeeping with the need to protect workers’ healthand safety, to ensure this limit is not exceeded

• specify requirements for daily and weekly restperiods and rest breaks at work

• grant a statutory right to paid leave• give specific protection for night workers, includ-

ing health and safety assessments• give enforcement powers to the Health and

Safety Executive and establish specific criminaloffences and remedies for failure to comply.

• National Minimum Wage Act, 1998• Part-time Workers (Prevention of Less Favour-

able Treatment) Regulations, 2000• Protection from Harassment Act, 1997• Public Interest Disclosure Act, 1998• Race Relations Act, 1976• Rehabilitation of Offenders Act, 1974• Sex Discrimination Acts, 1975 and 1986• Sex Discrimination (Gender Reassignment)

Regulations, 1998• Social Security Act, 1989• Working Time Regulations, 1998Both Acts and Regulations are available from theStationery Office (address on page 182).

Always remember that good practice in employ-ment does not just mean fulfilling the law and nomore. In some cases the law is out of date, in othersthere is no law, but it is in your interest and that ofyour employees to treat them well whether the lawrequires it or not. For example the special needs ofpeople with disabilities far exceed the measures laiddown in law. As a good employer you will want toabide by good practice and not just the letter of thelaw.

33

RIGHTS OF ALL EMPLOYEES

FROM THE FIRST DAY OFEMPLOYMENT• to an itemised pay statement• not to have unauthorised deductions made

from wages• to equal pay for work of equal value• not to be discriminated against on grounds

of race• not to be discriminated against on grounds

of sex or marital status• not to be discriminated against because of

past, current or future actions in relationto gender reassignment

• not to be discriminated against on groundsof disability (except where differenttreatment is justified), when employed by anorganisation with 15 or more workers

• not to be discriminated against because theyqualify for the national minimum wage, orbecause they have sought to enforce theirright to do so

• to work in a healthy and safe environment• to have an independent trade union

recognised by the employer if that is thewish of the majority of the workforce (inorganisations with 20 or more employees)

• to join and take part in the activities of atrade union

• not to be discriminated at work or whenapplying for a job as a result of an employerusing a “blacklist” of trade union members

• not to join a trade union• to reasonable time off with pay to carry out

duties and undergo training as an official of arecognised trade union

• to reasonable time off (which need not bepaid) for other trade union members foractivities of a recognised trade union

• not to be dismissed during the first eightweeks of lawfully organised industrial action

• to reasonable time off with pay to performfunctions as a safety representative (inorganisations with five or more staff)

• not to be victimised or unfairly dismissed ongrounds of activities as a safetyrepresentative, for making a complaintabout a health and safety matter or fortaking steps to protect themselves orleaving a place where they reasonablybelieve they are in danger

• not to be unfairly dismissed for activitiesrelating to being a representative forconsultation about redundancy or businesstransfer

• not to be victimised or dismissed after“blowing the whistle” on any illegal ordangerous activities carried out by theiremployer

• not to be victimised or unfairly dismissedbecause an employee has required theemployer to comply with statutoryobligations

• not be dismissed in breach of the contractof employment

• not be dismissed for any reason connectedwith racial group or sex

• not be unfairly dismissed for participating inan election of an employee representative

• to rest breaks, maximum working hours perweek and health checks

• to reasonable time off (which need not bepaid) for public activities

• to reasonable time off (which need not bepaid) to deal with unexpected or suddenemergencies relating to dependants (thisincludes any spouse, parent, child or moredistant relative who is dependent on theemployee)

• for employees aged 16 or 17 who have notachieved a certain educational or trainingstandard, to reasonable time off with pay tostudy or train for a relevant qualificationwhich will help them achieve that standard(and certain employees aged 18 have theright to complete training already begun)


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• to be accompanied by a fellow worker ortrade union official during disciplinary orgrievance proceedings

• to statutory sick pay after having been offsick for four days in a row, if they are payingNational Insurance contributions and if on acontract for three months or more

• to compensation for illness or injury causedby work

All female employees as also entitled to• paid time off for ante-natal care• 18 weeks’ maternity leave (even if the

woman was pregnant when she started thejob)

• the right to return to the same job on thesame pay and conditions after 18 weeks’maternity leave

• not to be unfairly dismissed for any reasonconnected with their pregnancy

• the right to a written statement of thereasons for dismissal if she is dismissed atany time while she is pregnant or afterchildbirth where her 18 week maternityleave period ends

AFTER ONE CALENDAR MONTH• one weeks notice of dismissal• pay during medical suspension• wages if laid off• a statement of terms of employment

particulars (within two months of startedwork)

AFTER 13 WEEKS• paid annual holiday (the qualifying period is

being challenged in the European Court ofJustice)

AFTER 6 MONTHS• 18 weeks’ statutory maternity pay, if the

women is earning more than the nationalinsurance lower earnings limit

AFTER ONE YEAR• not to be unfairly dismissed (note that for

some unfair dismissals, there is no qualifyingperiod – see above)

• to be given written reasons for dismissalwithin 14 days of the request

• additional maternity leave, comprising 11weeks before the expected week ofchildbirth and 28 weeks after the week ofbirth

• to take up to 13 weeks’ unpaid parentalleave to care for each child born after 15December 1999 during the child’s first fiveyears or, in the case of a disabled child, untilthe child’s 18th birthday. Similar rights existfor adopted children

AFTER TWO YEARS• to redundancy payment, reasonable time off

work to look for work or training if undernotice of redundancy

Because the 48 hour rule applies over a 17-weekperiod, it is unlikely to be a problem for most com-munity organisations.

The maximum working week can be excluded byagreement between the employer and its employees.

The Regulations apply to casual, part-time andagency workers as well as full-time employees.

For further information see Community Matters’factsheet 59: Working Time Regulations, 1998.


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VOLUNTARY WORKERS

Many community organisations rely on volunteersand before you take on the role of an employer, firstconsider the value your organisation places on yourvolunteers.

Do you ever have volunteering on the manage-ment committee agenda? Has the committee everlooked at ways of recruiting volunteers? How does theorganisation show it values the work of volunteers?Do you ever consult volunteers about the organisa-tion’s policy and future direction? Do you acknowl-edge volunteers’ work in your annual report?

If you have a policy of recruiting, training andvaluing volunteers you might not have to enter theminefield of employment legislation.

VOLUNTEERS AND STATE BENEFITSThe days are gone when the vast majority of volun-tary workers were drawn from those members ofsociety who had sufficient finances for a comfortablelife but time on their hands to offer a bit back to thecommunity. Such people did, and many still do,provide invaluable help as voluntary workers. How-ever, changing social values together with a vastlydifferent economic climate, have led to many vol-unteers being drawn from different groupings of peo-ple. Many volunteers receive social security ben-efits, and it is very important to ensure that theirvoluntary work with you takes account of the finan-cial and legal matters that this can give rise to.

Unless matters are handled carefully volunteersmay lose their entitlement to benefits. By and largethis occurs, not because of new legislation, butrather because a local office decides to tighten up onits implementation of existing legislation.

Job Centre staff have considerable discretion inapplying regulations. You should encourage volun-teers and potential volunteers to inform the JobCentre about their volunteering and explain howvolunteering can help them get paid work. It ishelpful to give volunteers a letter to present to theJob Centre stating:• the type of payment the volunteer receives (in-

cluding any payment in kind, such as mealvouchers)

• that you have discussed methods of seeking workwith the volunteer and that he or she can becontacted on a particular number and that youwill pass on messages

• that you understand the volunteer may have togive up volunteering at 48 hours’ notice

• that volunteering will help the volunteer to getpaid work through, for example, developing skillsand confidence and having a source of a refer-ence for job applications

If you are not a charity then you should not encour-age volunteers to do work within their own mainarea of occupation.

Watch out for the notional earnings rule whichmeans that the Benefits Agency will assume thatsomeone is earning money even when this is not thecase; if this does happen to one of your voluntaryworkers you can argue against it so long as your aims arecharitable or the work carried out is for someone whoseincome is on or about the level of income support;

The main rules concerning volunteering andbenefits are given on page 36.

NATIONAL INSURANCEMost people aged between 16 and state pension agemust pay contributions to the National Insurance(NI) scheme. NI contributions (NICs) are only paidon earnings above a certain amount.

NICs go towards the basic retirement pensionand some types (classes) of contribution also helppeople qualify for certain social security benefits, forexample contribution-based Jobseeker’s Allowance(JSA). If people do not build up credits for 9/10 oftheir working life their retirement pension will beaffected. Other benefits may also be affected by non-payment of national insurance.

Each week that someone qualifies for JSA theywill be treated as if they had paid their NI contribu-tion. It is also possible for someone to be treated ashaving paid an NI contribution even if they do notget JSA.

You should encourage volunteers to discuss theirNI contribution record with their EmploymentService Adviser at the Job Centre.

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Jobseeker’s Allowance (JSA)JSA will not usually be affected as long as it isreasonable for the organisation not to pay thevolunteer and he or she:• can be available for work or to attend an inter-

view at 48 hours’ notice• is actively seeking work as agreed with the

Employment Service Adviser• does not receive any pay other than for genu-

ine expensesThere is no limit to the number of hours anyonecan volunteer while receiving JSA, as long as theabove conditions are met.

Incapacity Benefit and Severe DisablementAllowance• someone can do as much voluntary work as

they wish without entitlement to benefit be-ing affected, provided that the work is forsomeone other than a close relative and theonly payments received are for expenses rea-sonably incurred in the connection with the

work. However, the volunteer should informtheir local benefit agency before they startvoluntary work for confirmation that they areallowed to do the work.

Invalid Care Allowance• volunteers must remain able to care for the

disabled person for at least 35 hours a week

State Retirement Pension• not affected in any way by volunteering

Industrial Injuries Disablement Benefit• not affected in any way by volunteering

Widows’ Benefits• not affected in any way by volunteering

Income Support• not affected by volunteering

Disability Living Allowance• not affected in any way by volunteering

HOW VOLUNTEERING CAN AFFECT BENEFIT

It is possible to pay contributions voluntarily tomake up for contributions not paid or not credited.

For further information about NICs contact yourlocal Inland Revenue (NI contributions) office(numbers will be in the phone book).

VOLUNTEERS AND EXPENSESIt is good practice to pay voluntary workers anyexpenses they incur in the course of working for you.There are several reasons, the main one being that itenables people who otherwise could not afford it togive you their time on a voluntary basis.

It is again important that clear rules and proce-dures are established for the type and amounts ofexpenses, how claims are to be made and when theexpenses will be paid.

There is a range of expenses that a volunteer canclaim without affecting their entitlement to benefit

or the amount of benefit they receive. These in-clude:• travel to and from the place of volunteering• travel while volunteering• meals taken while volunteering• post and phone costs• care of dependants while volunteering• the cost of protective clothing

Expenses should be paid against actual expendi-ture incurred and not as a lump sum or an hono-rarium. In this way volunteers’ benefit or tax posi-tion will not be affected. If expenses are not dealtwith in this way the volunteer’s status could switchfrom that of volunteer to part time employee, inwhich case travel to work expenses immediatelybecome taxable and benefits entitlement may beaffected. Honoraria may also put you in the positionof having to take on PAYE duties for the volunteer

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The committee of a particular and, for thesepurposes, nameless community building whichis not huge but has a good level of communityactivity was presented with a bill by the InlandRevenue, out of the blue as far as they wereconcerned, for £16,000. This was for PAYE andNational Insurance contributions going backover six years. As you might imagine, thecommittee was horrified, particularly as itthought it had done nothing wrong.

The situation was this. Every bingo caller andevery doorman and every other casualemployee had been given cash in hand for theirservices. In any one instance this had notamounted to very large sums of money: atenner here and there, maybe twenty poundsoccasionally. It all went through the books. Noone believed that anything wrong or underhandwas going on. If the recipients had a taxdifficulty it was between them and the InlandRevenue. After all no one “earned” enoughfrom the community building to qualify to paytax or National Insurance. These were not infact thought of as part time workers at all butrather good hearted volunteers who were“given a drink”.

As is their right the PAYE audit team camein to do a spot audit. They took a differentview. The recipients of the “drinks” were parttime workers and tax and National Insurancewere due unless the organisation could proveotherwise. The proper way to do that was to

fill in a P46 for each worker. This is the formyou have to send to the tax office for everyworker who does not give you a P45 at thebeginning of their employment with you. TheP45 is a statement of earnings and deductionsgiven by your employer when you stopworking for them. Upon receipt of the P46 theInland Revenue will issue a tax code which tellsthe employer how much tax, if any, to deduct.Tax on the part time workers’ income is yourresponsibility to collect and if you do not itbecomes your responsibility to pay it fromyour own funds at the emergency rate. This iswhat happened to the Community Building inthis example and a bill for £16,000 waspresented.

If you think that £16,000 is a lot of moneyfor such a situation then of course you’d beright. You’d be wrong if you thought that suchhorrifyingly large back-dated bills cannothappen. This, as every other “cautionary tale”,is a true story. What happened is that the auditteam took all sorts of other payments intoaccount as well, such as legitimate expenses ofvoluntary workers, legitimate in every wayexcept how they were accounted for or indeedwhether they were accounted for properly atall. If you do not have precise records andreceipts for every item of expenditure then itcan, perhaps quite inaccurately, be deemed aspayment of wages to part time workers. A verylarge bill can then accrue.

A CAUTIONARY TALE

concerned. The National Centre for Volunteering (ad-dress on page 53) has a free form, agreed with theDepartment of Social Security, to enable people onbenefits to record their out of pocket expenses.

Finally, although it may at first seem a little odd,it is wise to encourage all volunteers to accept pay-ment of expenses even if they do not want them.Not to do this can make less well off volunteers feelawkward and furthermore you never get an accuratepicture of the cost of your work. As for the better off,

they can always give their expenses to some goodcause if they wish – including returning them toyour organisation!

VOLUNTEERS AND EQUALOPPORTUNITIESThe main legislation covering equal opportunitiesis: the Sex Discrimination Act, 1986; the Equal PayAct, 1970; the Race Relations Act, 1976; Sex Dis-crimination (Gender Reassignment) Regulations,

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1998; the Disabled Persons (Employment) Acts,1944 and 1986 and the Disability DiscriminationAct, 1995.

These Acts are applicable to both paid and vol-untary workers and maintain that in all employmentmatters the needs of all sections of the communityare taken into account and that opportunities forpaid or voluntary work are open to all regardless ofrace, sex or disability. Although not covered bylegislation, opportunities should also be open to allregardless of special needs, religious beliefs, sexualorientation, class, age and HIV status. In otherwords equal opportunities applies as much to volun-tary workers as it does to paid employees.

More details of good practice in equal opportuni-ties are given later in this chapter.

VOLUNTEERS AND HEALTH ANDSAFETYUnder health and safety legislation an organisa-tion’s management committee has a responsibilityto ensure “so far as reasonably practicable” that peo-ple who are not employees but who might be affectedby the organisation’s activities are not exposed tohealth or safety risks. This includes voluntary workers

and committee members.So as well as actually having a health and safety

policy (compulsory if you have five or more employ-ees, but good practice, however many employeesyou have) you must make sure that you give everyvolunteer the opportunity of reading it and get themto sign that they agree to abide by it.

For more detailed information about health andsafety matters see chapter 7.

VOLUNTEERS AND RECRUITMENT ANDOTHER EMPLOYMENT PRACTICESThe next section will describe the recruitment, sup-port and grievance procedures that law and goodpractice demand that you follow with regard to paidstaff. It is good practice, wherever possible, to applythe same standards to voluntary workers in thesematters. Of course, as mentioned above, you willneed to consider the situation of informal and for-mal volunteers and apply common sense to the situ-ation; but you are urged for everyone’s sake to err onthe side of the formal. Voluntary workers have aright to good employment practices just as much aspaid staff. Do not use the question of informality toavoid your responsibilities to volunteers.

PAID EMPLOYEES

THE NEED FOR GOOD EMPLOYMENTPRACTICES FOR EVERYONEMany people reading this book will belong to acommunity building that has very few, if any, paidemployees. In these circumstances it is very tempt-ing to think that detailed procedures for staff re-cruitment, management and support are unneces-sary. The same can go for equal opportunities:“that’s for bigger organisations”, you might think.

Whilst such temptations are recognised and un-derstood, there are in fact important reasons whyyou should resist them and apply the standards ofgood practice, whether you have one member ofstaff or ten. They will help you find the best personfor the job; they will prevent you from inadvertentlydiscriminating against people from certain sectionsof society; they will help your staff feel more

confident and supported in their work and conse-quently they will be more productive. Decent em-ployment practices will help you discover difficul-ties, such as poor or inadequate work, more quicklyand enable you to take steps to put things right.

Furthermore, as the cautionary tale in this chap-ter has indicated, proper attention to the detail ofgood employment practices can prevent serious fi-nancial and legal difficulties.

EQUAL OPPORTUNITIES EMPLOYMENTIt is possible to talk too little about equal opportuni-ties and it is possible to talk too much about it.Talking about it is much easier than doing it. Goodpractice in employment from just about any point ofview will ensure that the principles of equal oppor-tunity are followed. Equal opportunities employ-

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ment practice is not separate from general employ-ment practice. Thus what follows will not con-stantly refer to equal opportunities. Equal opportu-nities underlies everything that follows: it is simplygood practice and applies all the time.

In essence equal opportunities employmentmeans that you go about all aspects of staffing in away that ensures no one is treated less favourably onthe grounds of race, sex, disability and special needs,religious beliefs, sexual orientation, gender reassign-ment, HIV status, class and age.

With certain exceptions discrimination of anykind is outlawed. A practice sometimes known aspositive discrimination is therefore usually againstthe law. This practice is supposed to discriminate infavour of groups who are often discriminated againstin our society. The exceptions are largely in thespheres of women and people from minority ethniccommunities. They are very tightly defined and byand large are where it would be inappropriate toemploy someone else for a particular job. If you feelthat a particular job of yours might qualify in thisrespect the best thing to do is to contact the EqualOpportunities Commission or the Commission forRacial Equality (for addresses see page 180) to getspecific advice and to avoid, with nothing but goodintentions, inadvertently breaking the law.

Positive action, however, is perfectly legal andsimply means that steps are taken throughout yourorganisation to ensure that discrimination againstanyone is eradicated. What is said on equal opportu-nities, both here and in chapter 11 – Reaching Out,constitutes what is generally known as positive ac-tion.

If challenged most people involved with commu-nity buildings would claim that they are not preju-diced against any groups on any of the groundsmentioned above. Most of us do not knowinglydiscriminate. Most discrimination is unintentionaland therefore much harder to defeat.

Developing an Equal Opportunities PolicyIt is important that there is an equal opportunitiespolicy for your organisation: only then will you havethe means of knowing exactly how well you aredoing in achieving the goal of acting fairly to all

sections of the community.You might think that the easiest way to get an

equal opportunities policy is to follow the very goodexample of those organisations which have writtenone already: simply adopt theirs. Whilst there isalways much to be learned from pioneers in the fieldand the collected experience of others tackling simi-lar problems, there are particular pitfalls in simplycopying their work, especially in the sphere of equalopportunities. This because it is one thing to adoptan equal opportunities policy in your head but quiteanother to implement it in the heart of the organisa-tion.

Look at what others have done by all means, butthen initiate a process in your organisation so thateveryone can contribute to developing your ownpolicy. This will not be an easy process becausethese things run very deep and excite passions andprejudices that most people prefer to leave wellalone; but it is leaving them alone that leads toproblems and injustices. Letting sleeping dogs lie iscertainly inappropriate here!

Easy or not, the very process itself will be valu-able because it will increase awareness by everyoneinvolved, both of each other’s views and of theissues. Equally important it will ensure that theskills, knowledge and experience of all will be drawnupon; and finally it will mean that you have a policythat is tailor-made for your situation.

Key Elements of an Equal Opportunities PolicyAn equal opportunities policy normally consists oftwo elements. The Statement of Intent sets outbroadly why you are adopting an equal opportunitiespolicy and what you intend to do. The Code ofPractice (which should be very practical) describesin more detail the actions and procedures you needto undertake to implement the statement of intent.It is common to include a third element within thecode of practice – a Code of Conduct. This is astatement that makes it clear that all people will betreated equally and properly, and can be displayedand circulated within your organisation.

Although your policy will be uniquely yoursthere are a number of important elements that itshould cover so that you can ensure that:

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• posts are advertised to encourage applicationsfrom all sections of the community

• all job applicants are treated fairly• all workers are treated equally• everyone’s training needs are recognised• the needs of people with disabilities are addressed• there are procedures to cover all these elements• procedures are developed to monitor the progress

of the policy’s implementation and to enable it tobe adapted and updated whenever appropriate.

When engaging in the process of developing anequal opportunities policy you will need a lot moreinformation than it is possible to give here. At theend of the chapter you will find a list of more de-tailed literature on the subject.

Although this chapter is about staffing rememberthat your equal opportunities policy must considerall aspects of your community building’s operation –not just your workers. You should therefore developpolicies, practices and monitoring procedures thatensure you do not discriminate against users andpotential users and that your policy covers yourcommittees so that they reflect all sections of thecommunity. (See chapter 11 – Reaching Out)

Community Matters’ information sheet 19 EqualOpportunities covers the content, development andimplementation of an equal opportunities policy.

Training in Equal Opportunities EmploymentPracticesQuite understandably equal opportunities employ-ment can be bewildering at first and it is thereforeimportant to provide support and training for thoseinvolved in it. There are many people and organisa-tions who specialise in this kind of training, includ-ing Community Matters. If you can afford to havetraining courses run in this way do so. Some localauthorities and some voluntary organisations pro-vide such services free or at low cost. However yougo about it do try and equip the people involved inrecruitment and other staffing matters by providingtraining in equal opportunities.

RECRUITING WORKERSOnce you have decided to employ paid workers it isimportant to follow correct procedures of recruit-ment, induction and conditions of employment.

The Recruitment PanelCommunity buildings are run by committees andimportant decisions are the responsibility of themain committee, even if it has delegated a certainmatter to a sub-committee. Staffing decisions arecertainly important decisions. Having said that it isvery unwise to have a recruitment panel of any morethan five people as it will be too intimidating for thecandidates. Try to avoid an even number as it can bevery awkward if it comes to a vote.

If you don’t have all the necessary skills withinyour management committee you could ask some-one from outside the organisation to join the panel– possibly from the local authority, or another vol-untary organisation.

If you have a building manager or warden thenyou should involve her/him in the selection of stafftoo; but avoid involving people who are leaving inrecruiting their successor: they do not have to workwith the person recruited, and your committee maywish to change the way the job is done.

Be sure to get a balance of people from differentsections of the community particularly ensuring bal-ance of sex and race. Community Matters providestraining on employing and managing staff, recruitingand retaining volunteers, and equal opportunities.

Clear Information for ApplicantsYou are more likely to recruit the right person if yougive potential applicants a good range of informa-tion about the job and the organisation. This shouldinclude a job description, a person specification, adescription of the community building, its history,activities, management structure and future plans.Using an application form rather than asking forCVs ensures that information on each candidate isgiven in categories relating to the job descriptionand person specification and so candidates can becompared fairly. It also enables personal informa-tion to be removed for monitoring purposes prior toshort-listing.

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The application package should also include theapplication form (see below) and details relating tothe job, including:• salary• holiday entitlement• probationary period (if any)• pension arrangements (if any)• summary of other terms and conditions

Job DescriptionTo state the obvious, before you can begin yoursearch for the right person for the job you need toknow exactly what the job entails. This meansdrawing up a detailed job description. The mainelements of the job description should be as follows:• job title• summary statement of the main purpose of the

job• person to whom the worker is responsible• people who are responsible to the worker con-

cerned• the main duties and responsibilities of the job• other duties as may be requiredA good job description saves time in the selectionprocess because people will be able to decidewhether the job is suitable for them. It is also helpfulin the interviewing process.

A contract of employment exists as soon as some-one accepts the offer of a job, and it is binding onboth sides; the job description forms part of thecontract and therefore cannot be changed withoutagreement from both parties.

Job descriptions should be reviewed regularly andbe the basis of an annual staff appraisal.

Person SpecificationA person specification will help you select the bestperson for the job. It details the qualifications, expe-rience, skills and abilities require. These should bedivided into what is essential and what is desirableand relate specifically to the duties of the post as setout in the job description.

Great care should be given to the preparation of aperson specification so that you do not inadvert-ently exclude people from the running, by settingthe standard too high. Equally you must not make

the requirements so general that it becomes unhelp-ful in the selection process.

You should include a statement detailing adapta-tions that could be made available to people withdisabilities. Part II of the Disability DiscriminationAct, 1995 gives disabled people rights in terms ofrecruitment as well as employment. Although thisonly applies to organisations with 15 or more em-ployees it would be good practice to ensure that yourrecruitment and employment arrangements do notdiscriminate against disabled people.

Application FormUsing an standard application form makes it fareasier to compare applications without bias. A formshould ask for:• name of applicant• address, telephone number(s), e-mail address

(ask whether it is ok to contact someone at work)• education and training relevant to the post• details of current or more recent employment

(including main duties, salary and dates of join-ing and leaving)

• details of past employment• other relevant experience – both paid and volun-

tary• names and addresses of referees (ask whether

they may be contacted before interview, and ifthe candidate wishes to be informed before ref-erees are contacted)

• details of whether the applicant requires a workpermit or is otherwise subject to immigrationcontrol

• if the post falls outside the remit of the Rehabili-tation of Offenders Act (see below) the formshould ask whether the applicant has any convic-tions, and should include the statement “Thispost is exempt under the Rehabilitation of Of-fenders Act 1974 and you are required to revealall convictions, even those that are spent”

The form needs to be well designed, with enoughspace for applicants to give full answers. Make itclear that answers should be addressed to the personspecification, and state whether it is permissible tocontinue on separate sheets if necessary.

Application forms should include a separate form

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for monitoring the responses from people from mi-nority ethnic communities and from disabled peo-ple. This form could also include personal questionssuch as age and sex, as these have no bearing on anapplicant’s ability to do a job.

Make it clear that completion of the form isvoluntary and that non-completion will not affect acandidate’s chances of success.

Rehabilitation of OffendersThe Rehabilitation of Offenders Act, 1974 meansthat, except in certain circumstances, people havethe right not to disclose any criminal convictionsthey may have had if they are “spent”. Dependingon the offence and the sentence and the time thathas elapsed since the date of sentencing a sentenceis considered spent. Certain professions and occupa-tions in the social service sphere, whether statutoryor voluntary, are exempt from the provisions of thisAct. These include jobs where the worker will comeinto contact with children and young people up toage 18, people over 65, those with mental illnessand people with serious disabilities. If you are in anydoubt check with the Home Office to see whetheryour jobs are exempt. If this is the case you will needto state this on the application form and ask fordetails (see above). You can still appoint peoplewith criminal convictions but you will have had anopportunity to take them knowingly into account.

AdvertisingTo make sure that as wide a range of people aspossible hear about your job you must advertisewidely. Use papers and places (including the localJob Centre) that will be seen by people from asbroad a spectrum of society as possible. Advertisingis expensive so you simply will not be able to coverall special interest journals every time. There areways of advertising that do not require expensive adsin newspapers, however, such as notice boards ofcommunity centres, other voluntary organisations,the mailing list of local federal organisations, coun-cils for voluntary service and rural community coun-cils. So run off extra copies of your advertisementand use these networks.

The advertisement is the first place where poten-

tial applicants will learn anything about the job andyour organisation. First impressions count. So makesure you cover all the important factors and do it ina clear and legible way.

In a summary form you should draw up the adver-tisement from the following elements:• name and address of organisation• job title• outline of the job• outline of the person specification• salary• whether full or part-time, and number of hours• whether it is suitable for job-sharing• whether permanent or temporary (and if tempo-

rary the length of the contract)• whether certain sections of the community are

particularly welcome to apply and if so underwhich legislation

• closing date for applications• phone number/address/e-mail address for further

information: a named contact is very helpful(you may want to ask people to send in a selfaddressed envelope)

• your status as an equal opportunities employer• any acknowledgement required by your funder(s)• date of interviewNo one involved in short-listing or interviewingshould gain information about applicants other thanfrom the application form or at the interview itself.This means that no member of the recruitment panelshould deal with enquiries and applications.

Administering the Recruitment ProcessWhoever you designate for the task of ensuring thatthe recruitment process runs smoothly will have anumber of things to do:• prepare (after full discussion and decision by the

recruitment panel) the job application packagesand send them to potential applicants

• receive completed applications, letting no oneelse see them before short-listing

• remove personal information from applicationforms for equal opportunities monitoring pur-poses and allocate a number to each form forshort-listing purposes

• invite short-listed applicants to interview giving

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information about date, time, place, travellingexpenses, and a request for the candidates toconfirm their attendance

• request references• give details of any pre-interview information

visit to the community building• handle post-interview correspondence

No Informal InterviewsAny visit to the building prior to the interview itselfmust be entirely to give candidates informationabout the place and the job. It must not form part ofthe selection process and therefore no one who willbe involved in the short-listing or interviewingshould take any part in a pre-interview visit.

ShortlistingShortlisting reduces the number of applicants forinterview to a manageable size. Its purpose is todecide which applicants meet the criteria given inthe person specification.

Each member of the panel should consider theapplications using an agreed scoring system (for ex-ample 0= doesn’t fulfil the criterion, 1 = partiallymet, 2 = fully met). Put essential factors first then, ifnecessary, consider desirable factors.

The panel should discuss the applications, bear-ing in mind the scores relating to essential factors,and draw up a shortlist. If there is a large number ofpeople on the shortlist – say, more than 6 – youshould then consider the desirable qualities.

However, if a large number meet both essentialand desirable factors, you will need to interviewthem all.

Contact the shortlisted candidates, giving themthe date, time and venue. It is also useful to tellcandidates who will be on the panel, the likelylength of interview, whether it will involve anyother procedures, such as a written test or presenta-tion, and whether there will be a second stage ofinterviews.

If you contact candidates by phone, you shouldfollow this up with a letter. Ask candidates to con-firm their attendance in writing.

InterviewingGood and successful interviewing requires attentionto a range of factors. Preparation is vital so that athorough and uniform set of questions can be ar-rived at that are designed to glean informationabout the candidates’ qualities and experience relat-ing to the requirements set out in the job descrip-tion and person specification. The same questionsshould be put to all candidates.

It is important that the interview is run in astructured but not stiff way in order to do all that ispossible to overcome the inevitable nervousness ofthe candidates. So be welcoming. The chair shouldintroduce all the panel members, say they will bemaking notes, say how much time is being allocatedfor the interview and that there will be an opportu-nity at the end for the candidate to ask questions.

Tell people when they will be informed of thedecision.

Discussion of the candidates should not takeplace until all the interviews are over. Members ofthe panel should take notes on each candidate andthese should as far as possible be done in a previouslyagreed format relating to the job description and theperson specification (using a form similar to thatused for shortlisting – see above).

The chair of the interview should ensure thateveryone has a full opportunity to say what theythink about each candidate without interruption.Then a full discussion can take place before a deci-sion is made on the grounds of suitability to do thejob. At the end of the interview session the panel’snotes should be gathered in and stored in a secureplace. This is in case someone appeals against yourdecision on the grounds of unfair treatment.

Keeping RecordsAn applicant who feels discriminated against ongrounds of race, sex or disability, or who has beenrefused employment on the grounds of membershipor non-membership of a trade union has up to threemonths to complain to an employment tribunal.You should therefore keep shortlisting and inter-view forms for a minimum of three months. As thetribunal can grant an extension it would be wise –and good practice – to keep them for a year.

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Letter of OfferYou may wish to contact the successful candidate byphone. If you do then be sure to follow the call witha letter straight away.

The letter of offer of a job forms part of thecontract of employment and should include the fol-lowing:• starting date and time• starting salary• job title• any conditions relating to the offer of employ-

ment (for example, a satisfactory medical, receiptof satisfactory references)

• a request for copies of qualification certificates,P45 or any other documentation you may require

• a request for a written acceptanceYou should also enclose a copy of the job descriptionand terms and conditions of employment and referto them in the letter.

Once the post is accepted you can inform theunsuccessful candidates in writing, earlier for thoseyou would not appoint even if the number onecandidate turned you down. You might be temptedto give specific reasons for the rejection. Whilst it isimportant to know your mind on this if challengedit is sensible not to say very much at all at thisjuncture other than an appointment has been madeand to thank them for coming.

A Note on ReferencesNearly all organisations ask for the name of two ormore people to act as referees for a candidate for ajob. Referees, who must know the candidate well, orknow his/her work well, will be asked to write areference about the suitability of a candidate to aparticular post. There are different views about thevalue of references: their objectivity is often suspectand an unfair “old boys’ network” can colour de-scriptions of a candidate’s abilities; telephone refer-ences are open to all sorts of abuse as there is norecord of what has been said.

So do not over-rely on references. To minimisesome of the problems make sure you:• give referees clear guidelines about the informa-

tion required (copies of job descriptions and per-son specification)

• wherever possible, ask for a current or recentemployer to be one of the referees

• where applicable seek information about convic-tions, informing the referee that the particularpost is exempt from the provisions of the Reha-bilitation of Offenders Act, 1974 on “spent” con-victions

• always ask for written references

MANAGING WORKERSRemember that whilst virtually all of what followsapplies to paid employees and only some of it tovoluntary workers, it is good practice to apply asmuch of it as possible to your volunteers, suitablyadapted where appropriate.

Another reminder about legal requirements andgood practice: good practice often goes beyond theminimum of the law and in some matters is notcovered by the law at all. Good practice has to dowith treating people fairly, humanely and in a sup-portive manner so that they will enjoy their work,be fulfilled and do the best possible job they can.Good practice is also about enabling the employerto ensure that work is being carried out efficientlyand effectively on behalf of the community buildingmanagement committee and the users of its services.

The Cost of Being a Good EmployerAlthough this is a delicate issue it is important totake account of cost. Many organisations simply willnot be able to afford all that good practice suggests.Whilst no one must use lack of funds to excuse badpractice there is no point in committing your or-ganisation beyond its means; that in itself is badpractice.

Contract of EmploymentA contract of employment exists as soon as someoneaccepts the offer of a job and, by so doing, provesthat he or she accepts the terms and conditionsoffered by the employer. Both employer and em-ployee are bound by the terms offered and accepted.Often the contract is verbally agreed and not writ-ten down. Anyone who is employed for more thanone month is entitled to a written statement ofemployment particulars within two months of

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taking up employment. This will not necessarilycover every aspect of the contract, but can provideimportant evidence of the main terms and conditions.

Main elements of the Statement of EmploymentParticularsA statement of employment particulars must con-tain the following:• name of employer• name of employee• job title or a brief job description• starting date of employment and whether previ-

ous service with the same employer or a previousemployer counts for the purposes of continuousemployment

• rate of pay including any overtime or bonuses• pay period and method of payment• hours of work• holiday entitlement, holiday pay and entitle-

ment to accrued holiday entitlement on leavingthe job

• entitlement to sick leave, including any entitle-ment to sick pay

• pensions and pensions schemes (if any)• whether there is in force a contracting out certifi-

cate with the employment contracted out of theState Earnings Related Pension Scheme(SERPS)

• notice period entitlement for both the employerand employee

• where a job is not permanent, the period forwhich the employment is expected to continue,or, if it is for a fixed term, the date when it is toend

• either the place of work or, if the employee isrequired or allowed to work in more than onelocation, an indication of this and of the employ-er’s address

• details of any relevant collective agreementswhich directly affect the terms and conditions ofthe employee’s employment and, if the employeris not a party to them, the persons by whom theywere made (a collective agreement is an agreementbetween one or more employers and one or moreunion covering: terms and conditions of employmentor physical conditions of employment; recruitment or

non-recruitment or termination or suspension ofstaff; the duties of one or more staff; allocation ofwork to teams or staff; matters of discipline; member-ship or non-membership of trade unions; facilities forofficials of trade unions; procedures for negotiation orconsultation)

• name or job title of the person to whom theemployee should go with a grievance

• grievance procedure or details of where the pro-cedure can be obtained (if 20 or more employees)

• for organisations with 20 or more employees,disciplinary procedures or details of how they canbe obtained

The contract may also include details of:• maternity and parental leave• dependants leave• compassionate leave• public duties• union duties• redundancy notice and pay• religious holidays• subsistence and travel arrangements• child care arrangements• flexitime arrangements• equal opportunities proceduresSome of the details under certain heads, for exampleequal opportunities procedures, grievance proce-dures and disciplinary procedures, can be containedin separate documents and referred to by specificname and date in the statement of employmentparticulars.

How to Determine the Detail of the Contract ofEmploymentBehind virtually every clause of the contract will lieimportant decisions based upon research and discus-sion: What amount of leave should be given? Whatis statutory sick pay? Should we be more generous inour own sick pay arrangements? Whilst we knowthat flexitime working arrangements can help par-ents organise childcare, can we organise it in such away so as not adversely to affect the services weprovide? What should be the details of our discipli-nary and grievance procedure?

These and many more questions need to be ex-plored and practical policies and procedures need to

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be developed in answer to each of them. The an-swers must suit the particular needs of your commu-nity building.

Detailed information about legal requirementsand what other similar organisations do will behelpful. In addition to Croner’s Guide (see page 54)there are many good publications on just aboutevery aspect of staff management. Particularly help-ful are Voluntary But Not Amateur, published byLondon Voluntary Service Council and EmployingPeople, published by ACAS (addresses on page 53).Voluntary But Not Amateur contains a model con-tract of employment which you might find useful.Do remember, though, that if you use a model it isimportant to customise it for your specific needs andpolicies, and to check that you can afford the termsoffered – for example the model may offer moregenerous maternity payment, or redundancy pay. Ifyou employ just a cleaner and caretaker, for exam-ple, you will want something much simpler al-though all the essential points still have to be cov-ered. Use the model as a starting point, therefore,rather than copying it slavishly.

Disciplinary ProcedureA disciplinary procedure is important in fosteringgood relations with your staff, not because it impliesthat you are going to have to discipline them all thetime, but rather on those occasions when you dothey know exactly what to expect and how it will bedone. Again, clarity is the key. It is also importantfor you as an employer to protect yourself fromfalling foul of employment law, particularly if thedifficult situation arises of the need to dismiss some-one. If you have not “managed” the process well anemployment tribunal will more readily support aclaim of unfair dismissal against you resulting inreinstatement of the worker concerned, compensa-tion or both.

ACAS has a code of practice called Code ofPractice on Disciplinary Practice and Procedures, avail-able from ACAS reader, of from ACAS’s web site(see address list on page 53). Use it when drawing upyour disciplinary procedure. It is very helpful.

The disciplinary procedure will depend on thestructure and size of your organisation for some of its

details. The essentials remain the same for any or-ganisation and should be contained in a writtenpolicy document. Complaints about a worker’s workor behaviour should be made promptly and clearlyin a series of stages ranging from an informal talk toa formal oral warning, a first written warning and afinal written warning. At each stage the worker’sviews must be fairly listened to and a note taken andput on file. The time periods between each stageshould be clear and not dragged out. Workers shouldbe allowed to have a union representative or friendpresent.

Time for improvement must be given at eachstage and when that time has elapsed a review ofprogress should be made. There should be a right toappeal against disciplinary action and a written pro-cedure for this, which again should be speedy.

Except in cases of gross misconduct the full pro-cedure must be gone through before dismissal.

Gross misconduct normally includes serious bul-lying or harassment, sexual harassment, racial abuse,assault, serious infringement of health and safetyrules and theft or fraud. If gross misconduct is sus-pected the worker concerned should be suspendedon full pay while an enquiry into the facts takesplace. If the enquiry finds against the worker thendismissal may follow instantly without goingthrough the full disciplinary procedure.

Many people take the view that it is avoiding theearly informal verbal stage of a disciplinary proce-dure that causes most trouble. Workers feel under-standably aggrieved if the first they hear that theirwork is considered unsatisfactory is in the form of aformal warning. It is then much more difficult torestore good working relations.

Dismissal and Employees’ RightsIf you decide to dismiss, for any reason except grossmisconduct, an employee who has worked continu-ously for you for one calendar month then he or shehas certain rights:• to a minimum period of notice:

– not less than a week if the period of employ-ment is less than two years

– not less than a week for each year of continu-ous service if the period of employment is

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between two and twelve years– not less than twelve weeks if the period of

employment is 12 years or more• to pay during notice, regardless of whether work

is available• to normal sickness conditions and pay during the

period of notice• to normal holiday entitlement and pay during

the period of notice; if any outstanding holidayentitlement remains at the end of the period ofnotice, payment in lieu must be made

• to a written statement of reasons for dismissal (ifemployed for one year or more – see page 34)

RedundancyIf there is no work available in the foreseeable futurefor a member of staff then she or he may be dis-missed as redundant. The main cause of this involuntary organisations is lack of funds. Employeeswith two years or more continuous service who aremade redundant are entitled to all the measuresreferred to above and have certain additional rights:• to a tax-free statutory redundancy payment at

the rate of:– half a week’s pay (up to a maximum – £230 in

2000/01) for each complete year of employ-ment between the ages of 18 and 21

– one week’s pay for each complete year of em-ployment between the ages of 22 and 40

– one and a half weeks’ pay for each completeyear of employment between the ages of 41and 65 (or the organisation’s agreed retire-ment age if this is lower), up to a maximum of20 number of years

– it is the employer who has to make thesepayments

• employees do not have to pay income tax onredundancy payments which they receive in ac-cordance with the Act

• to written particulars of redundancy paymentshowing how it has been calculated

Unfair DismissalEmployees who have worked continuously for oneyear or more have a right not to be unfairly dis-missed, and to compensation and/or their job back if

they can prove unfair dismissal to an employmenttribunal. As managers, the best way to avoid unfairdismissal is to act in accordance with the proceduresand practices set out above. In other words have aproper contract and disciplinary procedure andabide by them.

A particular case to guard against in times ofreducing grants is “constructive dismissal”. If, forexample, a grant covering a salary is reduced but notcut out altogether, you cannot, as the employer,unilaterally cut the hours of a member of staff: to doso would be a change of contract which must beagreed by both parties – the employer and the em-ployee. If you fail to do this, the employee is likely towin a case of “constructive” and, therefore, unfairdismissal at an employment tribunal.

There are many important aspects of employ-ment law concerning unfair dismissal and redun-dancy. If you have any doubt whatsoever it isadvisable to consult Croner’s Reference Book forEmployers. (See further reading on page 54.)

Grievance ProcedureA grievance procedure is valuable in management/worker relations for exactly the same reasons as adisciplinary procedure: it lets everyone know, inadvance, where they stand. On this occasion it ap-plies to situations when a worker is unhappy aboutthe way he/she is treated within the communitybuilding management structure.

Once again there should be a series of stageswhich will vary depending on the structure and sizeof the organisation. The worker should raise theissue first with his/her immediate staff superior. Ifthe matter is not promptly resolved in this way itcan next be taken to the staff head of the organisa-tion or if there is not one then to one of the officersof the committee. The next stage will be a specialmeeting of the management committee. If theworker is still not satisfied he or she can take theissue to ACAS.

There should be no more than a week betweeneach stage and written records should be keptat each stage. The procedure should be set out inwriting.

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Very Small OrganisationsIt is important to stress that much of what has beendescribed above ought to be considered and actedupon regardless of how many workers your commu-nity building may have.

Many people reading this book will be involvedwith community buildings that have very few staff,if any. There are hundreds of community buildingswho may have a cleaner for a few hours a day andmaybe a part-time caretaker but no other staff. Doesall this really apply to you too?

It has already been said that it is important toadopt as much good practice as is practical andpossible for your organisation. While you may notneed thick policy and procedure documents on allthe items referred to it will be important to havecommittee discussions on them that are clearly re-corded. You must do this to fulfil the law whereverappropriate, to deal fairly with the paid and volun-tary workers you have, and to avoid getting intoserious financial difficulties that you never thoughtwere possible.

Cleaners and CaretakersThe importance of cleaners and caretakers cannotbe exaggerated, whether they are your only staff orare part of a larger staff team.

The cleanliness and appearance of the commu-nity building sets the scene for everything that goeson in it. A well supported cleaner, just like any othermember of staff, is a more effective cleaner; and thesame is true of the caretaker. Yet often they becomethe butt of everyone else’s feelings.

There are several reasons for this, many of themmore fitting in a book on the psychology of workand staff relations. Whatever the deeper reasons,however, it often boils down to the fact that clean-ers and caretakers are all too often taken for granted.They rarely receive regular support and supervisionand often feel that they have an impossible job: anhour a day to clean that lot.

In addition, their duties are also sometimes takenfor granted rather than being clearly stated. Draw-ing up a detailed job description for your cleaner andyour caretaker is crucial, as are regular supervisionsessions. These may be only a ten minute talk once a

week with a committee member but they are stillvaluable. Allocate someone from the committee totake on this responsibility and make sure the meet-ings are regular. Like anyone else, cleaners and care-takers need an opportunity to be listened to, tomoan about this, to suggest that and to be takenseriously. They also need to feel valued for whatthey do and told when what they do is not up toscratch.

All workers need someone with whom they canregularly discuss their work. Make sure that a con-tact person is allocated to everyone. This is dealtwith further under Support and Supervision.

Tax, Insurance and Other PaymentsIt is very important to give attention to detail onthis subject; you could otherwise cause problems foryourselves as employers and for your workers,whether voluntary or paid.

As an employer you have the responsibility ofdeducting tax and national insurance from your em-ployees’ wages and paying it over to the InlandRevenue. Some of your workers may not have to paytax or insurance because they fall below the annu-ally set lower earnings limits but you still have toinform the Inland Revenue about your actions,whether staff are permanent, full-time, part-time orcasual.

Many organisations omit doing this for part-timeworkers in particular. This can lead to considerabledifficulties – remember the Cautionary Tale earlierin this chapter! – so make sure you fill in a P46 for allyour part-time paid workers.

The detail of what you have to do changes fromyear to year so it is not possible to give useful infor-mation here. If you employ anyone at all and pay-ment is made for work done be sure to contact yourlocal tax office and they will give you precise infor-mation about what you have to do together with allthe necessary stationery.

If you want detailed information over and abovewhat the Inland Revenue supplies automaticallythen the Reference Book for Employers by CronerPublications will tell you all you need to know.

You will also want to pay out-of-pocket expensesto your workers. Unless you go about it in the right

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way this could also affect their tax position. Thebasic rule is that you must pay expenses actuallyincurred upon receipt of detailed claims. If you givelump sums, honoraria, or pay more than is actuallyincurred the recipient will almost certainly be liablefor tax on some of it. In the case of voluntary work-ers you could inadvertently change their status tothat of part-time employee, which would affect theirtax position significantly and also decrease the kindof expenses you can pay, for example reimbursingcosts of travelling from home to the communitybuilding.

If you pay an allowance to a volunteer for usingtheir car in the course of the voluntary work, youshould pay it on the actual miles travelled and at theAA rate. After a certain number of miles (currently4,000 per year), however, the allowance becomestaxable unless you reduce the rate to a lower sum.Ask the Inspector of Taxes for details.

The Inland Revenue considers an honorarium tobe a taxable payment. It is also important to notethat, under charity law, except in exceptional cir-cumstances (see the Charity Commission’s bookletCC11 Remuneration of Charity Trustees) trusteescannot be paid, so the payment of an honorarium toa trustee or management committee member of acharity is not permitted anyway.

RetirementMen and women must have equal retirement ages,even though currently women are eligible for stateretirement pension at 60. Between 2010 and 2020the state pension age for women will gradually riseto 65, so the state retirement age for women bornafter April 1955 is 65.

PENSIONSNational insurance (NI) contributions provide em-ployees with a basic pension and the additionalState Earnings Related Pension Scheme (SERPS)when they reach retirement age. However, the statescheme does not give a pension on earnings abovethe national insurance upper earnings limit, a lumpsum on retirement or a benefit other than a pensionfor a widow. Many people, therefore, choose tomake additional provision for their pension.

Occupational Pension SchemesThere are two types of occupational pensionschemes. In a final salary scheme the benefit re-ceived relates to an employee’s pensionable earn-ings (the salary from which pension contributionsare deducted) near to retirement or on leaving serv-ice and on pensionable service (the length of timecontributions have been made to the scheme). It isunlikely that a small community organisation wouldhave the resources to operate such a scheme.

A money purchase scheme is directly related tothe amount of money paid in, the investment re-turns achieved and the rate at which the accumu-lated fund can be exchanged for a pension at retire-ment.

Under either scheme it is possible for both em-ployer and employee to contribute. The maximumthe employee can contribute and claim tax relief onis 15% of earnings; for the employer it is a sumrelated to salary. The Inland Revenue also limits thelump sum and pension benefits that can be receivedfrom an occupational scheme.

Stakeholder PensionsStakeholder pensions will provide access to a lowcost pension arrangement to employers who havepreviously been unable to offer their staff pensionprovision. They are not intended to replace goodoccupational schemes, but will make better pensionprovision available to more people. At time of writ-ing the regulations governing such schemes werestill in draft, but the following dates had beenagreed:• April 2001 – individuals will be able to start

contributing to stakeholder schemes, althoughnot via their employers

• October 2001 – any employer with five or moreemployees who does not offer any other type ofpension scheme will have to offer membership ofa stakeholder scheme to all employees who:– earn over the National Insurance lower earn-

ings limits– have been in your employment for three

monthsEmployees will be able to choose whether they wishto join the scheme.

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Employers who offer a group personal pension(GPP) scheme (see below) will be able to continuewith the GPP without having to provide access tostakeholder pensions as long as all employees areeligible to join the GPP and the employer contrib-utes at least 3% of the employee’s pay to the scheme.

It is difficult to get unbiased advice about pen-sion schemes. Many voluntary organisations belongto The Pensions Trust, which administers a numberof pension schemes especially designed for volun-tary groups, including multi-employer schemes.Voluntary sector workers and employers are repre-sented in equal number on the Trust’s Board ofTrustees.

Organisations funded by local authorities may beable to become admitted bodies to the Local Gov-ernment Superannuation Scheme. This enables or-

ganisations to provide their employees with occupa-tional pensions without having to set up their ownscheme.

Personal Pension PlansIf an employer doesn’t provide an occupational pen-sion scheme, or an employee chooses not to join anemployer’s scheme, the employee can take out apersonal pension plan.

An employer may or may not contribute to apersonal pension plan.

Group Personal PensionsSome employers organise personal pensions for theiremployees, to which the employer may or may notcontribute. The advantage of this for the employeeis that charges may be lower.


If you manage your workers properly, along the linessuggested in this chapter, they will already feel sup-ported. Good management, supervision and train-ing are the best forms of support you can give. Sup-port also refers to something more intangible but noless important. It means creating an environment inwhich people know that they are valued and caredfor. It is a matter for individual style and personality.In many cases it will simply be contact, whether bydropping in on people at work, or going for a drink.

Whatever you choose to do in addition to theformal aspects of people management describedabove, remember the well tried but none the lessvaluable maxim that your workers are your mostvaluable resource.

So far this chapter has concentrated on the legal,technical and procedural aspects of having staff,whether paid or voluntary. These are crucial andwill all contribute to the feeling of being supportedthat is so vital to enable staff to do a good job and tofeel happy in their work; but there is more to bedone in the sphere of support and supervision that iscertainly not a legal requirement. Do it any way: itdoes not have to cost you lots of money and will payhuge dividends in the quality of service workers give

to the community.This additional work is every bit as important as

fulfilling the legal requirements in helping your staffto feel good and perform well. The words that areoften used in this connection are support, trainingand supervision. All build together to create a work-ing environment in which staff feel cared for andbetter equipped to do the job. Some people say thatthe qualities of such an environment and the meansby which it is achieved are intangible. Withoutdenying the crucial contribution of individual per-sonalities to the process of creating a good workingenvironment, the view is taken here that there aremany tangible things that can be done, regardless ofpersonality.

REGULAR SUPERVISION SESSIONSAll workers, whether paid or voluntary, should havea regular opportunity to discuss their work, to re-ceive support and praise for what they are doing andto be helped to sort out any difficulties they may befacing. Sometimes these sessions can include re-quests by the supervisor to do particular things, andinstructions on how to do them. Information andadvice are also key elements of good supervision.

SUPPORT AND SUPERVISION

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It is normal for supervision to be given by theperson immediately senior in the organisation butthat should not mean that supervision simply be-comes a session to tell the supervisee what to do. Asindicated above requests and instructions are cer-tainly a part of it but not the most important part.The most important part is to listen. The vast ma-jority of workers are helped to become better work-ers if they can share their hopes and difficulties withsomeone sympathetic and encouraging and whomakes no real comment until she/he has heard thewhole “story”.

The organisation itself must decide how often tohave supervision sessions. Anything less thanmonthly supervision, however, will probably not bevery effective. It is very important that the sessionsare regular so that they are seen as a normal part ofwork and not something that only happens whenthings go wrong. It is much easier to cope whenthings do go wrong if there is an established tradi-tion of regular supervision; and less will go wrongany way.

Once a year, at least, the overall performance ofworkers should be reviewed. This is often referred toas an annual appraisal. Work is assessed in relationto the job description of the worker concerned andany specific goals that may have been set during theyear, or indeed at the last appraisal meeting. Itshould be an opportunity for both the employer andthe worker to comment on performance and to con-sider areas where improvements may be desirable.New goals should be set. Training requirementsshould be discussed and suitable courses researched.

There are one or two circumstances when it isnot possible or desirable for the supervisor to be theworker’s immediate senior in the staffing hierarchy.One is quite simply that there is no one senior. Insuch cases, it is sensible either to allocate a commit-tee member to supervise workers or to buy in what isknown as non-managerial supervision – i.e. to payfor an experienced supervisor from another organi-sation to do the job. One of the factors that mustinfluence your decision is the fine line that can andshould be drawn between supervision and manage-ment. A committee member who is not experiencedin supervision might find it difficult to draw that

line and be tempted to slip over too much into theinstruction mode, which could cause difficulties,which in turn could lead to difficulties with othercommittee members.

Having a non-managerial supervisor does notmean, however, that no one has the responsibilityfor managing the worker concerned. The responsi-bility for managing the senior worker of an organisa-tion usually lies with the chair of the managementcommittee. If necessary, training should be providedfor this role.

Once again this book takes the view that supervi-sion like many other aspects of good management,should be formal; but once again this means regular,open, clear and well-structured, and not stiff andauthoritarian.

TRAININGI have touched upon the value of training in equalopportunities employment practices. Training in allsorts of other aspects of the organisation’s work foryour paid employees and voluntary workers is alsoimportant. It is tempting to say nothing about train-ing as so many readers will think that it simplycannot be afforded. Whilst that is understandable itis a view to be resisted. Even if you cannot affordvery much training do consider the training needs ofall your workers, including committee members,and draw up a training programme. It is important toconsult with everyone about the precise contents ofthe programme so that specific needs and wishes canbe taken account of.

The next step is to cost the programme in itsdifferent parts and in total. If you write this pro-gramme up like any other fund-raising documentyou may have a good chance of finding funds forsome or all of it. Training is an interest of some trustfunds, particularly for small community groups.

It is also useful to remember that if you sendsomeone on a training course he or she can be askedto hold a “seminar” for colleagues back in the com-munity building so that the benefits of the trainingcan be shared by more of your workers. You can alsouse the “in-house” skills of your workers to trainothers. There are courses available to enhance theskills of workers so that they can themselves offer


52

training services as part of their normal work.It is important to remember training for teams of

staff as well as individuals. This will almost certainlybe done “in-house” and tailor-made to your ownrequirements. You can either organise it yourself orget someone from another local organisation tocarry it out for you – perhaps as a reciprocal arrange-ment.

There are people and organisations who will giveyou help in considering the training needs of yourworkers. Try your local council for voluntary serviceor rural community council. At a national levelCommunity Matters and its subsidiary CommunityTrading Services are very ready to advise on thesematters. There is an increasing number of freelancetrainers: perhaps you can get some voluntary workfrom one.


STAFFING CHECKLIST

Has your organisation developed clear andopen procedures for all aspects of “peoplemanagement” in particular:• checked workers’ rights and employers’

responsibilities• understood the need for good practice as

opposed to just the legal minimum• applied the same principles to voluntary

workers as to paid employees whereverappropriate

• developed good relations with the localbenefits agency

• informed volunteers on benefit of howvolunteering might affect their benefit

• made clear and precise arrangements forpayment of expenses against actualexpenditure rather than as lump sums or“honoraria”

• formulated an equal opportunities policy andprocedures for its implementation andmonitoring

• produced a detailed job description for eachpost

• produced a person specification for eachpost

• produced an application form which takesinto account your equal opportunities policyand that can easily be adapted to anyparticular post

• provided information and training forinterviewers

• applied the principles of equal opportunitiesstrictly at each stage of recruitment

• developed a proper contract of employment• given proper support, help and information

for all workers, including cleaning andcaretaking staff

• provided a contact person for each worker• prepared a disciplinary procedure• prepared a grievance procedure• been absolutely meticulous about PAYE and

National Insurance rules and regulations• created a supervision system for all workers• developed a training programme for all

workers

The National Centre for Volunteering runs aseries of courses for people employing volunteers,including some for potential trainers. Some of thecourses are very reasonably priced indeed (addresson page 53).

The Directory of Social Change and LondonVoluntary Service Council also run courses suitablefor many aspects of voluntary organisations’ work(addresses on page 53).

Other sources of suitable training are The Na-tional Council for Voluntary Organisations(NCVO), ACRE (Action with Communities inRural England) (addresses on page 53) and, in somecases, your local authority.

53


USEFUL ADDRESSES

Arbitration and ConciliationService (ACAS)Brandon House180 Borough High StreetLondon SE1 1LWThis is the address for the HeadOffice. There are also 7 regionaloffices.web site www.acas.org.uk

☎ Public enquiry points

Birmingham 0121 456 5856Bristol 0117 956 9500Cardiff 029 2076 1126Fleet 01252 811868Glasgow 0141 204 2677Leeds 0113 243 1371Liverpool 0151 427 8881London 020 7396 5100Manchester 0161 833 8585Newcastle upon Tyne0191 261 2191Nottingham 0115 969 3355


☎ 01285 653477e-mail [email protected] sitewww.acreciro.demon.co.uk

Commission for Racial EqualityElliot House10-12 Allington StreetLondon SW1E 5EH

☎ 020 7828 7022e-mail [email protected] site www.cre.gov.uk

Equal OpportunitiesCommissionOverseas HouseQuay StreetManchester M3 3HN

☎ 0161 833 9244e-mail [email protected] site www.eoc.org.uk

London Voluntary ServiceCouncil356 Holloway RoadLondon N7 6PA

☎ 020 7700 8107e-mail [email protected] site www.lvsc.org.uk

National Association ofVolunteer BureauxNew Oxford House16 Waterloo StreetBirmingham B2 5UG

☎ 0121 633 4555e-mail [email protected]

National Council for VoluntaryOrganisationsRegent’ s Wharf8 All Saints StreetLondon N1 9RL

☎ 020 7713 6161(helpline) 0800 798 798e-mail [email protected] site www.ncvo-vol.org.uk

The National Centre forVolunteeringRegent’s Wharf8 All Saints StreetLondon N1 9RL

☎ 020 7520 8900e-mail [email protected] sitewww.volunteering.org.uk


☎ 020 7226 0189e-mail [email protected] sitewww.communitymatters.org.uk


☎ 020 7226 [email protected] sitewww.communitymatters.org.uk

Department for Education andEmploymentSanctuary BuildingsGreat Smith StreetLondon SW1P 3BT

☎ 020 7925 5000e-mail [email protected] site www.dfee.gov.uk

Department of Social SecurityRichmond House79 WhitehallLondon SW1A 2NS

☎ 020 7210 3000e-mail [email protected] site www.dss.gov.uk

Directory of Social Change24 Stephenson WayLondon NW1 2DP

☎ 020 7209 0902e-mail [email protected] site www.dsc.org.uk

54


FURTHER READING

Individual Rights of Employees– Information Sheet 56published by CommunityMatters

Just About Managing?published by London VoluntaryService Council

The Law at Work – for thelaypersonpublished by Labour ResearchDepartment

Managing Employees –Information Sheet 55published by CommunityMatters

National Minimum Wage –Information Sheet 58published by CommunityMatters

Recruitment – InformationSheet 53published by CommunityMatters

Recruitment and Inductionpublished by the Arbitration andConciliation Service (ACAS)

Reference Book for Employerspublished by CronerPublications

Rehabilitation of Offenders Act,1974published by the NationalAssociation for the Care andResettlement of Offenders(NACRO)

Contract of Employment –Information Sheet 54published by CommunityMatters

Disability Equality inVolunteeringpublished by the NationalCentre for Volunteering

Employing People: a Handbookfor Small Firmspublished by the Arbitration andConciliation Service (ACAS)

Employment Handbookpublished by the Arbitration andConciliation Service (ACAS)

Emphasize the Positivepublished by CommunityMatters

Equal Opportunities inVoluntary Organisations:reading list no 2published by the NationalCouncil for VoluntaryOrganisations

The Good Employment Guidefor the Voluntary Sectorpublished by the NationalCouncil for VoluntaryOrganisations

The Good Practice Guide:For Everyone Working WithVolunteerspublished by the NationalCentre for Volunteering

Guidelines for Policies on theEmployment of Disabled People– Employment Factsheet 1published by RADAR

A Guide to the SexDiscrimination Act 1975published by the Department forEducation and Employment

Voluntary and Part-TimeWorkers (FB26)published by the Department ofSocial Security


Volunteer Drivers and Tax(IR122)published by the InlandRevenue, available from TheNational Centre forVolunteering

Volunteers’ Expenses and Taxpublished by The NationalCentre for Volunteering

Volunteers and Welfare Ben-efits – guidance notespublished by The NationalCentre for Volunteering

55


Working Time Regulations –Information Sheet 59published by CommunityMatters

COMMISSION FOR RACIALEQUALITY PUBLICATIONS

Code of Practice: For TheElimination Of Racial Dis-crimination And The Promo-tion Of Equal Opportunity InEmployment

Equal Opportunities is YourBusiness – A Good PracticeGuide On Race, Sex AndDisability For Small Firms

Job Advertisements and theRace Relations Act: A Guide toSection 5 for Advertisers andPublishers (free leaflet)

Positive Action and EqualOpportunity in Employment

Racial Discrimination: A Guideto the Race Relations Act 1976(free leaflet)

Racial Equality and the Asy-lum and Immigration Act 1996– a guide for employers oncompliance with the RaceRelations Act 1966

EQUAL OPPORTUNITIESCOMMISSIONPUBLICATIONS

Code of Practice on Equal Pay

Code of Practice on Sex Dis-crimination

Equal Opportunities is YourBusiness Too

Guidelines for Equal Opportu-nities Employers

A Short Guide to the SexDiscrimination and Equal PayActs


56

57

Finance

4444444444444444444444444444444

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BUSINESS = BUDGET + ACTIVITIES + PROCEDURESPLAN PROGRAMME FOR ACTION

CLARITY IS THE KEYIt has been maintained earlier in this book thatthere are two general principles governing thewhole process of managing community buildings:common sense and clarity. These principles are par-ticularly important in the area of finance. Aim tohave maximum clarity in all your financial mattersand you won’t go far wrong.

Although money and accounting for it can oftenappear to be complex and indeed anything but clearit is always possible to reduce it to simple and clearforms of expression: numbers are like that.

The common sense aspects of managing the fi-nances of the Centre are simply to remember thatmanaging a community building is not much differ-ent from managing a household budget except thatthe amounts are often bigger and you have to beaccountable to more people and institutions.

THE BUDGET AND BUSINESS PLAN AREAT THE HEART OF MANAGING THECENTREIf you have a well thought out annual budget foryour Centre, a clearly defined programme of activi-ties , together with clearly set out and agreed proce-dures for handling both the budget and the activitiesthen you have a business plan and this business planwill be your key aid in managing every aspect of theCentre.

This chapter describes the essential elements of agood budget and business plan and then developssome of the other aspects of financial managementthat flow from these key policy documents. These ofcourse include raising the money in the first place.

The budget is your single most useful managementtool for running the Centre. It is a statement of whatyou expect to spend and what money you expect tocome in for the following twelve months. It can beas simple or as complex as the situation demands butevery committee responsible for a community build-ing should have a budget and whether simple orcomplex it must be clear.

The budget will probably be prepared by theTreasurer, but she/he will need help from others atsome point and certainly from the main committee,to whom the draft budget should be presented.

It is easier to prepare your budget after you havean agreed activities programme as it is then clearwhat you are budgeting for. More is said about this

on page 66.In preparing the budget it is important to differ-

entiate between capital (once off) and revenue (on-going) expenditure. Every community buildingcommittee will have its own local differences as tohow best to set out its budget and what items andwhat amount of detail to include. The examplesthat follow, therefore, are given as a guide only. Thefirst one is for a Centre that has one or two ‘sections’in addition to the general use of the main hall and afairly substantial turnover. The second is from aCentre that has a thriving lettings policy but nosections. A careful examination of both might be ofvalue to you and your Centre. Adapt them to suityour own needs.

THE BUDGET

INTRODUCTION

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FINANCE

A CAUTIONARY TALE

Before continuing with the business plan andbudget, however, let me tell you how onecommunity organisation who really shouldhave known better did not exercise itscommon sense; and the effect that this had.This is a true story but names have beenchanged to spare red faces and libel suits.

Newtown Community Centre provided anumber of services to the community in SouthLondon. They received several different grantsto cover various aspects of their programmeincluding running costs, staffing and equipmentand repairs. Each grant was only to be used forthe purposes given and money from onepocket could not really be spent on another.Overall, at the beginning of the year, theorganisation was pretty contented with itselfas it had more or less enough money to meetmost of its important needs. The overallplanned expenditure for the year was some£40,000.

The centre had a good committee withsome very well qualified and experiencedprofessionals numbered amongst its members.The treasurer was very competent and keptthe books immaculately, entering up everyitem of income and expenditure as it occurredand balancing off every month. The books andthe bank account always balanced and there

was a healthy balance in the bank.So what went wrong? At each meeting of

the committee there was a financial report andthe worthy members noted with pride thatthere was always money in the bank and thatthe book-keeping was up to date. It was notuntil well over half way through the year thatthe committee decided to look at expenditureand income against budget. At this point theydiscovered that they had over-spentsignificantly in some categories whilst havingunder-spent in others.

The trouble was that the conditions of thegrant did not allow them to do this, to robfrom Peter to pay Paul or to ‘vire’ as theaccountants call it. So, although they hadmoney in the bank, they were in fact £8,000over-spent, or would be by the end of theyear, on two of their central activities. Theyhad but four months to raise the money orconsider making one of their staff redundant.

There are probably several morals to thisstory but the central one has to be that goodbook-keeping is not enough. You mustcompare your income and expenditure againstyour budget at regular intervals so that youhave time to make adjustments as you goalong thereby minimising the risk of thepotential disaster as in Newtown.

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SAMPLE BUDGET NUMBER ONE

Central Youth Senior Advice Generalcosts club citizens centre activ’s Other Total

INCOME £ £ £ £ £ £ £

Public authority grants 15000 18000 14500 47500Charitable grants and

donations 2500 3000 5500Lettings 13500 13500Affiliation fees 950 950Bar income 14000 14000Sales income 0Interest etc 350 350Fundraising activities 1500 500 700 2700Sundry income 2900 2900Special fundraising 7000 7000Transfer from reserves 0

17900 22000 3500 15200 28450 7350 94400

EXPENDITURE

Salaries and wages 19400 16700 4000 14500 0 54600Cleaning and caretaking 300 800 500 500 1900 4000Direct project expenditure 800 1000 900 1100 0 3800Rent and rates 375 1000 625 625 2375 5000Heat, light and power 265 700 435 435 1665 3500Repairs and maintenance 195 520 325 325 1235 2600Insurance 115 300 185 235 715 1550Telephone and post 730 660 130 1065 65 2650Travel costs 300 1200 1200 300 0 3000Printing and stationery 500 100 50 100 0 750Advertising and publicity 700 500 0 500 800 2500Training expenses 900 300 1550 300 0 1650Interest and loan charges 0 0 0 0 0 0Audit and professional fees 400 400 400 400 400 2000Sundry expenditure 1800 0 0 0 0 1800Building fund 0 0 0 0 0 0Contingency 5000 0 0 0 0 5000Share of net central cost –13880 2776 1388 2776 6940 0Capital expenditure 0 0 0 0 0 0

17900 26956 10288 23161 16095 0 94400

Surplus/(deficit) 0 – 4956 – 6788 – 7961 12355 7350 0

FINANCE

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INCOME £

Public authority grants 2390Charitable grants and

donations 0Lettings 20325Affiliation fees 390Bar rent 0Sales income 1090Interest 0Fundraising activities 2280Sundry income 1310Special fundraising 0Transfer from reserve 0

27785

EXPENDITURE £

Salaries and wages 7150Cleaning and caretaking 5000Direct project expenditure 0Rent and rates 500Heat, light and power 2075Repairs and maintenance 2280Insurance 500Telephone and post 410Travel costs 0Printing and stationery 310Advertising and publicity 0Training expenses 0Interest and loan charges 35Audit and professional fees 0Sundry expenditure 495Building fund 5000Contingency 0Share of net central costs 0Capital expenditure 0

23755

Surplus/(deficit) 4030

SAMPLE BUDGET NUMBER TWO

FINANCE

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INCOME AND EXPENDITURECATEGORIES GROUPED UNDERBUDGET HEADINGS(together with some explanatory suggestions)

INCOME

Public Authority Grants• Local authorities• Central government• Quangos• Europe

Charitable Grants and Donations• Charitable trusts• Industry and commerce• Individuals• National Lottery Charities Board• Other Lottery distributors

Lettings• Charges for room/hall hire

Affiliation Fees• Individuals• Groups

Bar RentThe bar should not be part of your organisation butseparated off as a different entity (see Chapter 5).Thus the income from the bar will not be the ‘tak-ings’ but any fees that the bar organisation hasagreed to pay the community organisation as part ofa licence agreement. This normally takes the formof a monthly licence fee for the use of the space andan annual covenant of the bar profits.• Monthly licence fee• Annual covenant (strictly speaking, the annual

covenant from the bar is a donation)

Interest etc• Bank accounts• Building society accounts• Investment income (shares etc.)

Fund-raising ActivitiesThe list is endless: (see page 85). This budgetarycategory in general should be used for income of afairly guaranteed nature from events and activitiesthat are relatively tried and tested within the

Centre. A separate page/column should be kept foreach activity.• Activity ‘a’• Activity ‘b’• etc.

Sundry IncomeThis category should be used for anything that doesnot readily fit under any other income heading, forexample• Hire of equipment• Photocopier charges• Contributions for use of phone• Income from recycled paper• Income from games machines

Special Fund-raisingThis category should be reserved for fund-raising, ofany kind, of a special nature undertaken in addition toregular fund-raising. Perhaps this will be to fund aspecific new venture or, more likely, a budgeted deficit.• Activity ‘a’• Activity ‘b’• etc.

Transfer from ReservesThis category can be used for two purposes:• Bringing in money given and put by for a special

purpose that is going to be carried out in thecurrent year

• Bringing in money that has been saved for a rainyday in order to balance the budget; but make surethat it really is a rainy day!

EXPENDITURE

Salaries and Wages• Salaries of all but cleaning and caretaking staff• Wages• National Insurance contributions• Casual work payments• Pension contributions

Cleaning and Caretaking• Wages• National Insurance contributions• Cleaning materials• Cleaning equipment• Laundry costs

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Direct Project ExpenditureThis category should be used to make an allowancefor any expenditure to carry out its approved pur-poses that can be authorised by a particular sectionitself. A separate page/column should be allowed foreach section.• Youth club• Senior citizens• etc.

Rent and Rates• Rent payments for building(s)• Rates• Water charges• Refuse disposal charges

Heat, Light and Power• Electricity charges• Gas charges• Gas bottles• Heating appliances

Repairs and Maintenance• Repair Bills• Tools• Fire prevention costs• Plant hire

Insurance• Insurance charges:

– public liability– buildings– equipment– employer’s liability– other

Telephone and Post• Telephone bills• Stamps• Courier charges

Travel Costs• Outings• Fares reimbursement (for both staff and volun-

teers)• Petrol costs• Vehicle maintenance• Road traffic insurance• Vehicle hire

• Road fund licence• MOT charge

Printing and Stationery• Paper• Office materials etc.• Letterhead and other printing• Annual report• Photocopying charges

Advertising and Publicity• Advertisements for staff• Other advertisements• General publicity expenditure:

– exhibition costs– photography– poster production costs– newsletter

Training Expenses• Training courses• Conference fees• Supervision fees

Audit and Professional Fees• Audit fees• Solicitor’s fees• Architect’s fees

Sundry ExpenditureA place to put anything that does not neatly fitunder any other expenditure category such as• Coffee, milk, biscuits etc.• Affiliation fees• Licence fees• Bank charges• Loan chargesIf loan charges are a significant sum then theyshould be itemised separately, either as a category oftheir own or under capital expenditure.

Building FundA place to note any transfer of surplus funds tocommitted reserves for improving the building. Inmany years, if you can afford to do it, this might onlybe a book entry.• Transfer to building fund

Capital Expenditure• Building costs (major planned works, not

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ordinary repairs)• Large equipment purchase• Vehicle purchase

DepreciationDepreciation often confuses people. As an account-ing device, which is basically what depreciation is,you may not have to take it into account at all. Atits most simple depreciation means taking accountof the estimated loss of value of a capital asset (car,piece of machinery etc.) due to the wear and tear inthe current year, and is used mainly for tax purposes.As you will almost certainly not be liable for tax youmay choose to ignore depreciation altogether: beadvised by your auditor.

Some people choose to use the term depreciation(wrongly but perhaps usefully) as a way of puttingmoney aside into a special fund for replacing capitalequipment. Of course you can only do this if youmake a surplus on your accounts. If this is the casethen perhaps the more proper way of establishingthis kind of a fund is to show it very clearly as atransfer to an equipment fund exactly the same asthe building fund.

ContingencyAn allowance for bad budgeting. Thus it is an itemin the budget only, not the account books. How-ever, be careful about including this in budgets youpresent to funders, as they may decide to reduce yourgrant if it looks as if you have some money in hand.

HOW TO GENERATE THE NUMBERSThe samples are given mainly for the layout and thecategories but to make them look realistic actualnumbers have been used. These numbers are real toone organisation only. It is absolutely crucial thatthe numbers that go into your budget reflect themost accurate assessment of real income and realexpenditure for YOUR organisation. The more ac-curate they are the more valuable is the budget inhelping you to manage your building.

So how do you generate the most ‘real’ numbersfor your Centre? There is no simple magic formula.It takes careful hard work going through each itemindividually, checking correspondence with fundersfor amounts of grant and donation income, looking

at last year’s income from lettings, sales, raffles andanything else that provided you with funds. Thenyou have to estimate whether the amounts are likelyto be the same as last year or more or less. Thisdetailed work has to be repeated with every categoryof both income and expenditure. You will need toexamine old gas bills, phone bills, repair bills and soon. In fact you will have to look at all your bills andalso your receipts book and all correspondence to dowith income.

Don’t forget to make an appropriate allowancefor inflation on the expenditure side of the budget.

It’s probably best in the first place to build up thebudget, category by category in the way described,for the overall income and expenditure for the Cen-tre. In the first example above this is the right handcolumn.

Many community buildings have separate sec-tions or projects or sub-committees running thevarious activities that make up the bulk of the Cen-tre’s programme. It is often useful to have a separatebudget for each section. Now that you have theoverall figures (the right hand column) you can sub-divide it between the different sections or projects,allocating your best estimate of each category ofincome and expenditure appropriate to each activ-ity.

In all of this work it is useful to keep accurate anddetailed notes of how you arrived at the individualfigures for each category. If nothing else this willmake the task easier next year and will also provideevidence, if needed, for the various sections andother interests if they feel they have been allocatedtoo much of the heating bill or whatever it is they’renot happy with – and there’s always something!

BALANCING THE BUDGETIn these days of cuts in grants and general financialdifficulties all round there’s a high chance thatwhen you’ve finished the first draft of the budgetthere will be a difference between the projectedincome and the projected expenditure, and unlessyour Centre is very lucky indeed this difference willbe a negative one, in other words you are planningto spend more than you are estimating will be raised.You do not have a balanced budget.

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This is where the Treasurer will certainly needhelp from the rest of the committee to see whethersavings can be made – category by category – andwhether with special effort more money can beraised. The line called special fund-raising in thesample budgets is where income of this sort is en-tered. You will have noticed that the first organisa-tion used this line, that is it had a budgeted deficit.The second did not: it was in the fortunate positionof having a projected surplus.

Some centres are also in the fortunate position ofhaving built up a reserve over the years. Now is thetime to consider whether you can afford to allocatesome of that reserve to making ends meet for theyear ahead. Each organisation will have differentfactors to bear in mind in making this decision andonly you know what they are for yours; but theprinciple of common sense clearly states that moneycan only be spent once and therefore a decision toallocate reserves to current expenditure should notbe taken lightly.

You also need to remember that if you do spendthe reserves, problems such as loss of income frominterest as well as cash flow difficulties will occur. Acash flow problem is simply that there is no moneyin your account to pay the bills even if you are owedmoney. Thus, in order to survive you have to borrowif you can. Borrowing costs money too so you havean extra item of expenditure. It could be the begin-ning of a very slippery slope indeed. More organisa-tions go out of existence because of cash flow diffi-culties than for any other single reason. Your pre-cious reserve could prevent this.

HOW TO DESCRIBE RESERVESThere are several kinds of reserves and it is veryimportant to think carefully how you describe themin your accounts. For registered charities it is a legalrequirement to show different types of charitablefunds separately.

General reserves, also known as unrestricted fundsare funds belonging to the charity that can be spentas the trustees wish in furtherance of the charity’sobjects.

Committed reserves or designated funds are part ofthe general reserve (or unrestricted funds) that are

earmarked for a particular purpose. The designationhas an administrative purpose only, and does notlegally restrict the trustees’ discretion on how thefunds may be spent. For example, if funds have beendesignated for new computer equipment which isthen donated, the trustees could decide to spend themoney on something else, for example a piano.

Restricted funds are funds which have to be spentin a specific way. This could include a local author-ity grant for a particular project (for example run-ning a playgroup or buying a minibus) or the resultof a fundraising appeal for a specific purpose (forexample, if funds have been raised for a new roofthey cannot then be spent on furniture).

It is important to be clear in your accounts aboutreserves because local authorities may think youhave no need for a grant if you are showing largeamounts of general reserves.

The wise rule must be to have as much of yourunrestricted reserves as possible designated.

WHAT TO DO WITH ‘CENTRAL COSTS’Some organisations that run community buildingsare fortunate enough to have staff. These mightinclude cleaners, a caretaker, youth leaders andeven a community worker or centre manager insome cases. It is clear where some of the costs ofhaving these staff should be allocated within thebudget. Thus the cost of the youth worker goes inthe youth work column along with an allocation oftheir share of other expenditure, the luncheonclub organiser in the senior citizens column and soon.

Some costs are not so easy to allocate, as the staff(for example the community worker or centre man-ager) and their on-costs are used for the benefit ofthe whole centre, but you need to put them some-where.

One useful way to allocate these ‘central costs’ isto put them all into a column marked ‘central costs’and then take them out again, after deducting anyspecific central costs grants. You can then re-allo-cate them to the various different sections accordingto the amount of time you think each section ben-efits from central services. This is useful because itgives a realistic overall costing for each section and

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gives a clearer picture for fund-raising purposes. Inthe first sample budget this is done in the last line onthe expenditure side: Share of net central costs.

It will by now be clear that much of the budgetpreparation work cannot be done without havingsome idea of what is going to happen in the Centrefor the year ahead. In order to produce accurate

estimates of income and expenditure, say forlettings, you have to know the number and type oflettings there will be during the year. It is sensible tomake these estimates in a detailed and planned wayand to do it for every activity that currently takesplace in the Centre.

THE PROGRAMME OF ACTIVITIES

There may well be hopes and plans to develop newactivities or to increase the frequency of existingones: all these should be quantified and responsibil-ity allocated for getting on with the necessary work.It is sensible to do this exercise section by sectionand to have it all written down with as much detailas possible including dates, times and charges.

As with the budget, it may be best to ask one

person or a small group to co-ordinate the job ofpreparing a draft programme of activities. This draftshould then be submitted to the general committeefor discussion, amendment and final approval. Thisshould be done before the Treasurer prepares thebudget so she or he has all the necessary informationto work from.

PROCEDURES FOR ACTION

Now you have a budget and a programme of activi-ties, all you need to turn them into a business plan isa clearly set out and agreed set of procedures to putthe plans into action: who will do what and when?Once again there is no magic way to produce thisfinal document. The best way to do it is to take theprogramme of activities and go through it step bystep, section by section and decide what actionneeds to be taken in order to turn the hopes intoreality.

Thus if the programme called for increasing thelettings, someone or some group of people need tobe put in charge of marketing the Centre, of adver-tising the facilities and encouraging new groups to

hire rooms. If the budget called for an increase inincome from special events someone needs to takeresponsibility for seeing that they are planned.Again as much detail and clarity as possible willhelp people to know what they are supposed to bedoing and assist them in making a better job of theirallotted tasks. It would be particularly helpful tohave a clear calendar of events.

Once the business plan has been approved by thecommittee it is important that everyone has a copyof the complete document. It can then become thecentral reference for action and monitoring progressthroughout the year.

RAISING FUNDS FOR THE CENTRE

Now you have the business plan you can use it as thecentral focus for managing just about every otheraspect of the Centre as well as the financial ones.The list of categories in the budget can serve as a

reminder for deliberation and action on all sorts ofthings in the life of the Centre. Checking throughthe list of income and expenditure items you will bereminded, for example, of lettings or insurance or

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maintenance. Does anything need to be done aboutthese items? If so when and by whom? Check theprogramme and action sections of your businessplan. It might be a good idea to review progress ofthe plan in this way at each or every other meetingof the general committee.

Logically and indeed chronologically you willhave to have done lots of other work on the financesbefore you can write a budget and the rest of thebusiness plan. I started the chapter on finance out oflogical sequence because of the tremendous value ofthe budget and business plan. Now is the time to goback and look at the other aspects of finance. Thefirst must clearly be to do with raising it in the firstplace: if you don’t have any money there’s nothingto manage and budget for!

USING PROFESSIONAL FUNDRAISERSYou may decide you want to carry out some majorfundraising and feel that employing professionalfundraisers would be helpful. Before doing so makesure that they will reflect the image you want toportray and be absolutely clear about their fee –often a percentage of funds raised.

Use by charities of a fundraising consultant orcompany is regulated by Part II of the Charities Act,1992 and the Charitable Institutions (Fundraising)Regulations, 1994. The regulations apply tofundraisers whose pay (excluding expenses)exceeds£5/day, £500/year or £500 for a particularfundraising venture. The main regulations are givenbelow; for further information see Charities andFundraising (CC 20), published by the CharityCommission.• There must be a written agreement (in a pre-

scribed form) between the charity and fundraiser.• Potential donors must be told who will benefit

from their donation and how proceeds will bedistributed, including what proportion thefundraiser will receive.

• Anyone giving £50 or more using a credit ordebit card in response to a broadcast appeal or byany method in response to a telephone appeal isentitled to a refund if it is requested within sevendays. The fundraiser must inform donors of thisright.

SOURCES OF INCOMEThe following list of possible sources of income foryour Centre is not exhaustive but it does includemost of the more common ones. Brief information isgiven about each source, as well as reference to anylegislation relating to statutory grants and somehints on how to make your application more likelyto be successful.

There is of course no guarantee of success even ifyou write the ‘perfect’ application but, to state theobvious, there is a guarantee that you will not besuccessful if you do not ask. I say this to encourageyou to apply for virtually everything. Even if anapplication takes a long time to put together andeven if the bureaucratic paths seem unbearably tor-tuous and even if you are not successful at the end ofit you still will have learned something in the proc-ess that will undoubtedly be helpful for anotherapplication.

One kind of funding that is worth serious consid-eration when it comes to finding extra money to runyour Centre is project funding. This simply meansconsidering setting up some new project, such as awomen’s employment advisory service, a new work-shop for disabled people or whatever else you thinkwould provide a valuable contribution to meetingthe needs of a particular section of the communityeven if it is not the main work of the Centre. Apartfrom the obvious benefits to the relevant section ofthe community there should also be a financial con-tribution to the day to day work of the Centre viaoverheads and ‘central costs’. In these difficult fi-nancial times there is often money available forspecial projects even if mainstream funding is beingsqueezed.

Of course you will have to check with the asso-ciation’s governing instrument that any new activi-ties or projects are within your terms of reference.

LOCAL AND REGIONAL GOVERNMENTGRANTSIt is possible to obtain grants for both capital andrevenue expenditure from your local or regionalauthority (county, metropolitan borough council,shire district, unitary authority or regional assem-bly). There is often a bewildering variety of routes

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into local authority funding. In some authoritiesgrants are made by a number of committees, forexample social services, education or communityaffairs; others have one overall grants committee.Some authorities have a grants or voluntary sectorliaison officer. If you are not familiar with your localauthority’s methods, contact your local council forvoluntary service, rural community council or otherdevelopment agency for information and advice.Community Matters and Action with Communitiesin Rural England (ACRE) will also be willing tohelp (addresses on page 81).

Below is a résumé of the most common avenuesinto local authority funding.

Capital grants – building, extending orrenovating the community centreMoney for the provision of the community centre inthe first instance is possible under a number of dif-ferent pieces of legislation:• The 1944 Education Act. This empowers educa-

tion authorities to provide community centres. Asmall number of counties allocate grants fromtheir Libraries and Recreation/Recreation andLeisure budget. The availability and amount ofgrant aid varies from authority to authority; somegive no grant at all. Enquiries about funding un-der this legislation should be made to the ruralcommunity council in shire counties and, else-where, to the education department of your localauthority.

• The Housing Acts. These enable housing au-thorities to provide tenants’ halls or communitybuildings in those areas which consist predomi-nantly of council houses. Talk to the local hous-ing manager for more information about thissource of funds.

• The Local Government (Miscellaneous Provi-sions) Act 1976. Section 19 of this act givespermissive powers to all local authorities, amongother things, to undertake the provision of com-munity centres and village halls.

Conditions of grant aid. If you are considering capitalgrant applications then there are a few fairly stand-ard conditions that most local authorities apply:• a minimum of 25% of the cost of the scheme will

normally have to be found from non-statutorysources;

• you should make no commitment about the pro-posed building before grant aid has been ap-proved whether this is by way of purchase orcontract. This can sometimes be waived by get-ting prior consent in writing from the grant-aiding authority;

• where a charity has the power in its trust deed,the trustees can now mortgage the charity’sbuilding if they own it (for example to pay forextensions or development) without the priorconsent of the Charity Commission, providedthe regulations of Section 38 of the CharitiesAct, 1993 are complied with. However, it’s al-ways worth thinking twice before funding any-thing through loans: how are you going to paythe loan back? Unsecured loans are legal, butonly borrow what you are sure you can pay backfrom anticipated income;

• community buildings have to be properly consti-tuted organisations. A suitably worded trust deedmust be prepared and approved by the CharityCommission and/or the Inland Revenue. Modeldocuments are available from Community Mat-ters; for village halls the relevant body is ACRE;when the trust deed is being prepared you willneed the assistance of a qualified solicitor;

• before giving a grant the local authority will wantto be sure that the community organisation isproperly managed; this means that you have aproper constitution with representation from alllocal groups likely to have an interest in thecommunity building and that there are properdemocratic elections, records of proceedings andproper books of account; model constitutionsthat have stood the test of many successful appli-cations are available from Community Mattersand ACRE; (for addresses see page 81);

• the organisation should have a reasonable secu-rity of tenure on the proposed property; just whatis deemed reasonable varies from area to area:many authorities ask for 28 years but organisa-tions have received grants with only a 7 yearlease;

• some county councils will only give a grant to

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voluntary building projects which are also prom-ised a contribution from their own district orborough council.

Revenue grants – running the communitybuildingIn many ways it is revenue funding, that is fundingfor the day to day running costs of the Centre,which is the most crucial part of the fund-raisingprogramme. Some local authorities can be an im-portant source of income in this sphere. As withcapital funding there are several routes into localauthority revenue funding.

Once again it is the Local Government (Miscel-laneous Provisions) Act 1976 Section 19 that givesall local authorities, including parish, town andWelsh community councils as well as county, dis-trict and borough councils, the powers to give grantsto local organisations to run community centres.Education authorities are similarly empowered un-der the 1944 Education Act to assist organisationsresponsible for the running and maintaining of com-munity centres, and with their educational and sen-ior youth work. The National Assembly for Walesalso has grant-giving powers – for further detailscontact the Assembly (address on page 82).

Local arrangements vary. The administrative ar-rangements for these grants vary considerably fromarea to area and it is as well to make sure you knowthe precise ones for your authority well before thetime to apply: ask the Town Clerk’s Department oryour local council for voluntary service or rural com-munity council for information.

It may be the Social Services Department, theLeisure Department or the Libraries and AmenitiesDepartment or simply the Town Clerk’s Depart-ment that administers grants; some authorities havea Community Affairs Department. You must findout the specifics for your local authority and thenenlist help: try and find another organisation thathas already been through the mill.

It’s not necessarily universal but most authoritieswant applications quite early in advance of the fi-nancial year (April to March) for which the grantwill apply so that it can slot into the often long anddifficult budgeting process that local authorities

have to go through. This usually means Septemberor October of the preceding year.

I say more about applications a little further on,but in general the more information you give to alocal authority and the better presented it is thebetter the chance you have of getting some money.They will probably want to see your last year’s an-nual report and accounts with specific details of youractivities and membership.

Conditions of grant aid. Very often local authori-ties attach conditions to a grant and these should bestudied very carefully before you accept the grant.Usually they require nothing but what ‘good prac-tice’ demands. Here, then, is an opportunity tocheck whether your practice is in fact as good as youthink!

You should get a copy of the authority’s standard‘Conditions of Grant Aid’ document and studying itbefore you make your application. It could help youslant your application in appropriate ways and showyou where you could improve your practice. It mightbe worth considering applying to trusts or the localauthority for a grant to help you train to get up tostandard.

Metropolitan Boroughs Grants SchemesFollowing the demise of the Greater London Coun-cil and the other metropolitan county councils spe-cial grants schemes were established in some areas toreplace the grant making functions to voluntaryorganisations. These are controlled by all the bor-oughs of the metropolitan area and make grants to awide range of organisations in a wide range of activ-ity areas. To qualify your organisation has to servemore than one borough. There are grants schemesin Greater London, Greater Manchester and WestYorkshire (for addresses see pages 82 and 83).

CENTRAL GOVERNMENT GRANTS

Single Regeneration Budget (SRB)The SRB provides funding to support regenerationinitiatives in England carried out by local partner-ships. Its aim is to improve the quality of life of localpeople in areas of need, including addressing thedisadvantage experienced by members of minority

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ethnic communities. It funds schemes which workwith and add value to other programmes and initia-tives, and which build on good practice and givevalue for money.

The number of successful voluntary-sector ledbids has increased significantly since the earlyrounds. It is likely that the next round – SRB7 – willwork to a similar timetable to SRB6, with bids beinginvited at the beginning of 2001.

SRB is now administered by the regional devel-opment agencies (RDAs). For further details con-tact your local RDA (addresses on pages 82-83).

English PartnershipsEnglish Partnerships is the national regenerationagency for England. Its Community InvestmentFund provides capital grants for community-basedprojects which involve capital work to provide orsignificantly improve land and buildings. Priority isgiven to enterprise and social/recreational initia-tives “of significant benefit to people”. Revenuefunding is not available. Although it is able to oper-ate throughout the country, priority is given to Eu-ropean Objective 1 and 2 areas (1 – Northern Ire-land, Merseyside and the Highlands and Islands; 2 –those areas where the unemployment rate is higherthan the EU average, which have a higher percent-age of industrial unemployment than the EU aver-age and a decline in this employment category),areas that have suffered the loss of traditional indus-tries, particularly the coalfield closure areas, areasthat are the subject of existing regeneration strate-gies and initiatives, other inner city areas, and ruralareas of severe economic need, chiefly EuropeanObjective 5b (mainly areas in Scotland, Wales,northern, eastern and south west England).

The Fund is now administered by the regionaldevelopment agencies (RDAs), who agree theirown detailed criteria. For further information con-tact your local RDA (addresses on pages 82-83).

Department of Health (DoH)Grants are available under the Opportunities for Vol-unteering Scheme for projects involving volunteers inhealth and social care. A particular focus of thescheme is to provide opportunities for unemployed

people to volunteer. Rolling programmes operate inWales (the Volunteering in Wales Fund) and Scot-land (the Unemployed Voluntary Action Fund) –addresses on page 83.

The Home OfficeThe Active Community Unit (ACU) of the HomeOffice is currently piloting the Community Re-source Fund, which enables small groups to apply forgrants of up to £500. The Fund is managed by theCommunity Development Foundation and Com-munity Foundation Network (formerly the Associa-tion of Community Trusts and Foundations). If theproject proves successful the ACU intends to ex-tend the pilot funding for a further two years. Forfurther information contact the Community Foun-dation Network (address on page 81).

QuangosCentral government provides some voluntary sectorfunding through quangos – quasi-autonomous-non-governmental-organisations.

The Countryside AgencyThe Countryside Agency was formed from themerger of the Countryside Commission and the Ru-ral Development Commission. It works to conserveand enhance the beauty of the countryside, promotesocial equity and economic opportunity for peoplewho live there, and help people enjoy it.

The Agency gives grants to help extend the useof village halls or to maintain or improve theirservices. It can also contribute towards the cost ofproviding a new hall where there is no existingcommunity building or the current hall is beyondrepair. Help may also be given towards the cost ofincreasing energy efficiency and providing accessand facilities for disabled people. Grants will coverup to 25% of costs, normally to a maximum of£10,000. Grants are not normally available formainstream activities, maintenance or repairs. Pro-posed services should not duplicate existing facili-ties and the hall should be freehold or on a leasewith a minimum of 21 years to run.

The Countryside Agency also operates a loanfund for village halls, administered through ACRE

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and the rural community councils (RCCs), whichcan provide loans towards the cost of capital im-provements such as extensions or rebuilding costs.The maximum loan is normally £20,000 (althoughlarger amounts may be available).

The Agency also gives a number of other grants –for example to support its work in encouraging localpride and in providing better information about thecountryside. At time of writing it was reviewing itspriorities and planning a new strategy.

Details of all the grant schemes are availablefrom the Countryside Agency’s regional offices; fordetails of the loan fund contact ACRE (addresses onpage 81).

English HeritageEnglish Heritage (EH) will consider grants towardsmajor urgent repairs to grade I or II* listed buildingsto prevent the loss of important historic landscapefeatures under its Historic buildings, monuments,parks and gardens grant scheme. Current prioritiesinclude projects involving grade I or II* propertieswhich can demonstrate significant social and eco-nomic regeneration benefits. Grade II listed build-ings in London may also qualify for repair grantsunder the London Grant Scheme. For details con-tact your nearest English Heritage Regional Office(details from English Heritage London Region –address on page 81).

The Sports CouncilsThe Sports Councils (in England, Wales, Scotlandand Northern Ireland) run funding programmeswhich include capital grants for building projectsand for purchasing major items of equipment. De-tails vary, so contact the appropriate Council fordetails (addresses on pages 83). They also adminis-ter the Lottery Sports Funds (see ‘National Lottery’,below).

EUROPEAN FUNDINGThe European Union (EU) was established to en-sure that Europe’s industry was efficient enough tocompete on the world stage. Most of Europe’s vastrange of constantly changing programmes are there-fore about industry or employment. If your organisa-

tion is actively involved with training, or creatingjobs, you may want to explore the possibilities ofEuropean funding. However, gaining access to EUfunding is complicated and slow – the money canarrive long after you’ve spent it – and you may needinternational partners for some schemes.

The main source of European funding for volun-tary organisations is the European Social Fund(ESF); its aim is to improve employment opportuni-ties by providing financial support for vocationaltraining and job creation. Particular emphasis isplaced on helping long-term unemployed people,young job seekers, people excluded from the jobmarket, and the promotion of equal opportunity. Ithas also funded volunteering programmes. ESFfunding can only cover running costs and cannotexceed 50% of a project’s total expenditure apartfrom activities under Objective 1 (which currentlycovers projects in Northern Ireland, the Highlandsand Islands and Merseyside), for which the limit is75%. Grants are usually made for one year at a time(and, as previously mentioned, are usually paidlate).

Unless you are a large organisation, with consid-erable resources, it is usually better to seek Europeanfunding in association with a supportive local part-ner. Most local authorities have European liaisonofficers, as does the National Council for VoluntaryOrganisations (address on page xxx), and many col-leges of further education and training and enter-prise councils are very active on European matters.If you are very clear about what you want to do,especially if it concerns training or employment,write to them asking if they think there is a relevantEuropean scheme. Your Member of the EuropeanParliament (MEP) may also be able to help. Youmay, however, find there is a UK grant programmewhich offers you a better chance of success.

The European Commission (address on page 82)produces a range of leaflets and booklets on itssources of financial support, including Funding fromthe European Union. NCVO’s book Grants fromEurope is also very useful.

For further information contact the UK Pressand Information Officer of the European Commis-sion (address on page 82).

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THE NATIONAL LOTTERYThe National Lottery has become a major source offunding for the voluntary sector. Set up in 1994, 28pof every £1 ticket purchased must be spent on ‘goodcauses’ – covering Arts, Heritage, Sports, The Mil-lennium, New Opportunities (covering health, edu-cation and the environment) and Charities – dis-tributed by six funding bodies. The MillenniumCommission will cease at the end of 2000. Commu-nity and voluntary organisations can apply to any orall of the distributing bodies as long as they meet thefunding criteria. Brief details of criteria and processare given below; full details of each board are givenin ACRE’s information sheet no 19: National Lottery(address on page 81).

National Lottery Charities Board (NLCB)The NLCB can make both revenue and capitalgrants to charitable, benevolent and philanthropicorganisations. It is currently running two maingrants programmes – ‘Community Involvement’and ‘Poverty and Disadvantage’. The programmesare continuous: there are no closing dates for appli-cations, so organisations can apply at times to suittheir needs. However, it takes up to five months toprocess an application – it is advisable to contactyour local NLCB office to establish the decision-making schedules. The NLCB also runs the ‘SmallGrants Scheme’ in Wales and Northern Ireland,which awards grants of between £500 and £5,000 tosmall local groups, as well as specialist grants pro-grammes, which run to fixed timetables. For furtherinformation contact the National Lottery CharitiesBoard (address on page 82).

Arts CouncilsLottery funds are available for capital projects suchas constructing new buildings, improving old build-ings, making buildings accessible, buying equipmentand carrying out feasibility studies. Individual artscouncils have their own priorities, but projects mustbe of benefit to the community in general.

In England small-scale capital grants – between£5,000 and £100,000 – are managed by the RegionalArts Boards (addresses on page 81). The large-scalecapital programme is managed by the Arts Council.

At time of writing details of the new capital pro-gramme (CP2) were not yet available. For furtherinformation contact the Arts Council of England.

The Arts Council of Wales manages capitalgrants on a rolling programme. Grants are for aminimum of £2,000 and require partnership funding– at least 10% for projects under £100,000; 25% forlarger projects.

Applications to the Scottish Arts Council Lot-tery Fund must be for a minimum of £2,000, andrequire a minimum of 25% partnership funding.There is a rolling programme for applications under£100,000 and a timetable for larger grants.

The Arts Council of Northern Ireland gives capitalawards of between £2,000 and £2,000,000, requiringpartnership funding of between 25% and 50%.

All areas also operate a smaller grants programme– usually called Awards for All – for applications ofbetween £500 and £5,000. Priority is normally givento organisations whose income is below £15,000.

Addresses for all Arts Councils are given on page81.

Sports CouncilsLottery Sports Funds, distributed by the five sportscouncils, provide funding for capital projects such asconstruction, upgrading and buying land to providenew and improved sporting facilities, and revenuefunding which will help develop excellence at allsports.

Equipment may be eligible if it is a necessary partof a capital project being supported by Lottery fund-ing, or is an item with a lifespan of at least five years,based at a permanent site. Partnership funding isrequired – 30% in Wales, 35% in England (10% inpriority areas), 25% in Scotland, 30% in NorthernIreland. Applications should be for a minimum of£5,000 and can be submitted at any time. For furtherinformation contact your regional sports council(addresses on pages 83).

The sports councils also participate in theAwards for All scheme, which gives grants of be-tween £500 and £5,000. For details contact yourregional sports council.

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Heritage Lottery FundVoluntary organisations involved in preservingbuildings or land or important objects or collectionscan apply to the Heritage Lottery Fund for capitalprojects which will improve the public’s access andenjoyment of the UK’s local, regional or nationalheritage. This includes buying, repairing, conserv-ing or restoring property, improving buildings andnew building work. The total cost of the project(which should last for up to three years) must nor-mally be over £5,000 and under £100,000, and somepartnership funding is required. For further informa-tion contact the Heritage Lottery Fund (address onpage 82).

New Opportunities FundThe New Opportunities Fund (NOF) distributesgrants for health, education and environmentprojects.

The Out of School Hours Childcare Programmefunds the provision of good quality, affordable andaccessible out of school hours childcare in a range ofsettings that may involve the public, private andvoluntary sectors.

The Green Spaces and Sustainable Communitiesprogramme will support projects designed to helpurban and rural communities understand, improveor care for their natural and living environment,focusing on disadvantage.

For further information contact NOF (address onpage 82).

FEASIBILITY STUDIESIt is important to give careful thought to the plan-ning stages of a new community building to ensurethat the project is viable. Time spent on planning aproject can lead to considerable savings later.

It is possible to get Arts Lottery funding for feasi-bility studies for arts projects. Further information isavailable from the regional arts boards (addresses onpage 81).

Under its main grants programmes (see above)the National Lottery Charities Board can fund feasi-bility studies for building work costing £30,000 ormore. For further information contact NLCB (ad-dress on page 82).

CHARITABLE TRUSTSA traditional source of funds for voluntary organisa-tions of all kinds is the charitable trust. There arethousands of them in the UK. A philanthropist willhave put a sum of money ‘in trust’ and said more orless how the income from the invested sum is to bedispensed. A small group of trustees have the duty,nearly always on a voluntary basis, to decide whichof the hundreds of applications they receive eachyear are to receive a grant. There are national trustsand local trusts and each has its own particular set ofguidelines as to what it can give, to whom and forwhat purposes.

Which Trust?The vast majority of grant-making charitable trustsare listed in The Directory of Grant Making Trustspublished by the Directory of Social Change(DSC)/Charities Aid Foundation. The Directorynow comes in three volumes (current – 1999-2000 –cost £89.95) and on the Grantseeker CD ROM(£58.69 for the 2000 edition). If you are going to gointo fund-raising from this source in a big way thenit may be worth paying this amount. You may, how-ever, find the Directory of Smaller Grant MakingTrusts or one of DSC’s four guides to local trusts(details on page 84) more suitable (and more afford-able). The main directory (and other fundraisingresources) may be available at the public library oryour local council for voluntary service or rural com-munity council.

The Directory of Social Change also publishes anumber of other fund-raising guides (for list see page84).

There are also thousands of local trusts through-out the country that are not mentioned in the direc-tories. These are well worth researching. Whilsttheir terms of reference are often restricted theycould well be restricted to precisely the activity thatyou need funds for. The local council or the councilfor voluntary service should have a list.

Another useful source of information about trustsis the computer database Funder Finder. You answera number of questions about your project, for exam-ple the area of benefit, cost, type of beneficiary, andthe program will point you to the most appropriate

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trusts by giving references to the major relevantpublications (for example the Directory of GrantMaking Trusts and A Guide to the Major Trusts). Asthe database costs a minimum of £150 + VAT, it isprobably only worth buying a copy if you are likelyto carry out a significant amount of fundraising.However, it is available for use in some councils forvoluntary services and other larger organisations(including LVSC’s library – address on page 82).Funder Finder will be able to tell you if there is acopy available for public use near to you (address onpage 82).

There are two trusts which are particularly usefulfor community associations.

The Foundation for Sport and the Arts is anindependent trust funded from the football pools.The Foundation offers grants to organisations, in-cluding small local community groups, to enablethem to undertake or develop sport and arts activi-ties. Limited funding is also available for short termrevenue funding (three years maximum). For furtherinformation contact the Foundation (address onpage 82).

The Carnegie UK Trust Village Hall GrantProgramme. This Trust currently offers grants tothe management committees of charitable villagehalls in the UK to help them undertake projectswhich will enable new activities to take place in thehall. It will, however, be changing its policies inMarch 2001, so you will need to check whetherfunding for village halls is still available. For furtherinformation send an A5 sae to the Trust (address onpage 81).

INDUSTRY AND COMMERCEAnother lucrative source of income for voluntaryactivities in general is the local and national busi-ness community. Some companies devote a propor-tion of their pre-tax profits to charitable giving. Afew are just philanthropic. Most, quite understand-ably, have an eye to publicity and creating a goodimage of the company that will enhance their sales.Thus donors in this category will often want a men-tion in your annual report or other literature. Solong as you can satisfy yourself that you are notcompromising the organisation in taking a particu-

lar firm’s money then it is well worth putting someeffort into this kind of fund-raising.

It is important to find out who you should writeto within the company. Large companies often havecommunity affairs departments, staffed by peoplewhose job it is to consider donation applications.

If you are not sure I think it is best in the firstinstance to write to the Managing Director of thecompany with a simple and direct letter statingbriefly and clearly what you are seeking funds forand finishing up with something like: ‘… if ours isthe type of work that you are interested in support-ing I will be delighted to give you more details of ourplans and of how I think we could be of help to yourcompany in return.’

The Directory of Social Change has a number ofhelpful publications in this field – the Guide to UKCompany Giving, The CD-ROM Company GivingGuide, Finding Company Sponsors and CorporateFundraising.

More detailed advice on how to make an applica-tion follows on page 75.

Becoming a Registered CharityMany trusts as well as some companies will only giveto organisations that are registered with the CharityCommission. If your organisation is not already reg-istered, it would be worth examining what would beinvolved in establishing it as a charity. More is saidabout charity registration in chapter 2.

OTHER FUND-RAISING ACTIVITIESMuch of the Centre’s income will come from yourown activities. You will have noted, perhaps withenvy, that the organisation whose budget providedthe second sample budget earlier in this chapterraised 85% of its income from lettings, sales andother fund-raising activities. It can only haveachieved this by careful and effective marketing ofthe Centre and the services it provides.

Marketing the CentreVoluntary organisations have not generally givenenough attention to marketing themselves. A shortbook like this cannot go into great detail on thissubject but it can give you every encouragement to

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take a serious and organised look at how you letpeople know what you have to offer.

PostersThis serious look will, of course, include things likeposters in the right place. Care must be taken toensure that the posters are clear and legible and giveall the right information: it’s amazing how manypeople forget to include their telephone number.Have you thought of trying to recruit someone as avolunteer who is a graphic designer or who is inadvertising to be your publicity officer? Have youeven thought of having a publicity officer at all?

Publicity leafletsAnother idea worth thinking about is producingregular leaflets that go to all the local organisationstelling them what you are doing and adding on whatfacilities you have available for them. Perhaps youthink that you cannot afford the printing costs.Printing does cost money, it is true, but it can bewell worth it if it brings in extra lettings and there-fore extra revenue for your Centre. Have youthought of asking a local printer to sponsor a regularpublicity leaflet for the Centre? The printer’s namewould of course be on it bringing publicity andpossible new business to the printing firm. If youmanaged to achieve this you could distribute theleaflet door to door round the centre as well.

A helpful and efficient serviceEqually important in your Centre marketing strat-egy will be making sure that people are well receivedand that the Centre is a nice welcoming andfriendly place to be. The caretaker or volunteers on

duty must be briefed and trained in friendly andhelpful approaches; access arrangements must besimple and efficient; and the facilities must be cleanand pleasant and provide what your users want.

People seem not to mind paying for services aslong as they are good. So think about offering yourphotocopier to users at a slight profit to yourselves.The same could apply to using the phone or fax. I’msure there are many other things that you couldimprove in your particular Centre if you put yourmind to it. The main thing is to create an environ-ment that people like being in and to let peopleknow that it exists. It’s common sense but so manypeople forget!

Two useful books on this subject are Getting YourMessage Across, published by Community Matters,and The DIY Guide to PR for Charities and The DIYGuide to Marketing, published by the Directory ofSocial Change (addresses on page 81).

Fund-Raising EventsThere are simply hundreds of things you can do, ifyou have the will, the energy and the people, to raiseadditional funds for your Centre. The remarkablething is that most of them can be great fun andcreate a greater sense of community as well – just aslong as you do not bite off more than you can chewand have a clear plan of campaign. It’s also impor-tant to check that all legal requirements are fulfilledwhen organising special events (see chapter 5).

This is not a book primarily about fund-raising soI will simply point you to a list of possible activities(page 85) and also to ‘Further Reading’ on pages 83-84.

MAKING AN APPLICATION

There are two vital things about applications forfunds regardless of whether they are to governmentbodies, charitable trusts or commercial and indus-trial firms. The first is to do all you can to makeyours the best possible application: clear, concise,

intelligent, informative, smart, professional-lookingand above all realistic. The second is to do all youcan to make sure that your application gets lookedat favourably, that it gets from the bottom to the topof the pile.

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MAKING THE BEST POSSIBLEAPPLICATION

Finding Out About the Funding BodyBefore you put pen to paper it is important to findout as much as possible about the body to which youare applying: what does it give money for? Whatparticular angle(s) is it looking for? How much doesit normally give? What requirements, additional tothe purpose of the grant falling within their objec-tives for giving, does it have? For example serving aparticular geographical area, a particular groupingwithin society, or whether the applicant organisa-tion gives sufficient attention to equal opportuni-ties.

Clear, Concise and Positive ApplicationsArmed with this information you can then write anapplication that is slanted to fit the particular re-quirements of the funding body. Slanting meanswriting your project up in the best possible light forthe particular organisation. It does not mean dis-torting the facts.

So now you are ready to write the application.Bear the following points in mind:• give a clear introductory summary statement of

what the application is for• give a brief history of your organisation with the

accent on aims and objectives, achievements,success and responsible management

• give a bit more detail about the project for whichyou are seeking funds: who will it help? how? howmany? over what time scale? if you think it appro-priate give a few simple statistics to show theneed that your proposal is aiming to meet; if theproject has been running already give results

• state clearly how much the proposal will cost;give as much detail as possible but keep it simple;if necessary refer to a more detailed budget in anappendix

• state how much you have raised from your ownand other sources towards the cost of the projectso far; if possible try and show that the donationcurrently sought will finally make implementa-tion possible

• check what other information the funding body

requires such as constitution, charity number,trust deed, list of officers, equal opportunitiesstatistics, annual report and accounts; refer tothem in the text or in a covering letter but alwaysinclude them as appendices so that they do notinterrupt the flow of the main body of your appli-cation.

Layout and Style as Important as ContentIt does not end there. I personally think, althoughmany funders might not admit it (but many will!),that the layout and presentation of your applicationis every bit as important as the content. If the funderprovides an application form make several copies ofthe form before completing it. Some funders nowprovide their forms on disk, and some applicationforms (including the NLCB’s and NOF’s) can bedownloaded from the Web.

Make sure, therefore, that the application is easyto read and that it flows logically and consistently.Use short sentences.

Have quite short paragraphs too!Have almost as much space on the page as there

is print: it is much easier to read. Use bold headings.And never start a sentence with and or but or splitan infinitive. You will be amazed how many peopleare sticklers about correct grammar.

The Covering LetterFinally it is often much better to present your appli-cation as a separate document and not as one longletter. Send it to the funder with a covering letterwhich, in effect, should be a very concise summaryof the application along with the actual request forfunds and an offer to give more information if re-quired. An invitation to visit the Centre is wise aswell. Try and make the letter as personal as possibleand try to keep it to one side of A4 in length if youcan and certainly no more than two.

GETTING YOUR APPLICATION TO THETOP OF THE PILEOnce you have written and dispatched the bestpossible application with the succinct covering let-ter you still have work to do to try to ensure thatyour application is singled out for receiving a grant.

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Whether the application is to a public authority, acharitable trust or a commercial enterprise thechances are that it will be one of dozens if nothundreds. You need, therefore, to do all in yourpower to get yours from the bottom to the top of thepile. This usually means ‘lobbying’.

In the case of local authority grants it will cer-tainly include contacting the ward councillor(s) forthe area of your Centre. It’s best to do this both inwriting, with a copy of the application, and in per-son. You could also find out who is on the commit-tee that will make the decision. Do you know any ofthem? Does anyone you know have any contacts?The same goes for trustees of charitable trusts orboard members of companies. If there is any possiblelink with any decision maker, use it. Try and speakto them. Listen carefully to what they have to say,noting their pet fields and issues and, if you sendthem a copy of the application, stress those petissues in the covering letter.

It’s also important to consider the staff involvedin the grant giving organisation. All local authoritycommittees will be ‘serviced’ by an officer of thecouncil and many trusts also have a paid secretary.Whatever they say about the limits of their influ-ence their views are nearly always significant in the

final decision even if they do not have a formal vote.Again, listen very carefully to what they say and thelanguage they couch it in and try and use thatlanguage, subtly, in follow-up letters and letters tothe decision makers themselves.

There’s also the press. It can often be helpful toget some local coverage for your Centre or project.In addition getting several of the Centre’s users towrite to the committee chair can be of benefit.

In short do anything that is legal and decent toget your work or new project heard so long as it isnot counter-productive – and only you can be thejudge of that.

Help with your applicationFunder Finder (see page 73) has developed a freesoftware package – Apply Yourselves – to help withwriting a funding application. You can use the soft-ware to draft a letter or funding proposal, and as youwrite you get guidance about what you should in-clude. You can then print the letter out or export itto a word processing program. The disk is availablefor 50p (to cover postage) from Funder Finder (ad-dress on page 82) or can be downloaded from theirweb site www.funderfinder.org.uk

MORE ABOUT MANAGING YOUR FINANCES

This is not a book about detailed book-keeping oraccounting. There are details of specialists books onthat subject at the end of the chapter. I would like,however, to make one or two further general pointsabout financial management that flow from theoverall approach to budgeting and planning takenearlier.

RELATE THE BOOKS OF ACCOUNT TOTHE BUDGETMany organisations have a good budget but theyfind it difficult to use as a helpful management toolbecause it does not harmonise with their cash bookand receipts book. Thus it is not a particularly easytask to produce monthly or quarterly accountsagainst budget so that the committee can check how

things are going and make timely adjustments ifnecessary.

So it’s important that the book-keeper (usuallythe treasurer) sets up the books of account using thesame headings as have been used in the budget.Whilst this is not difficult it is not quite as easy as itseems as there are normally more items of bothincome and expenditure than there are headings inthe budget. The larger list of items have to begrouped under the exact headings used in thebudget. I have done this for the headings in thesample budgets used in this chapter (see pages 60-61). Once again your Centre may well have othercategories. That doesn’t matter: the important thingis to group them under the budget headings and todo it within your account books.

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FINANCIAL MANAGEMENTCHECKLIST

Has your organisation carried out the following financetasks this year:• prepared a budget• set down a detailed activities programme• agreed procedures for action• tried all possible sources of income• developed a Centre Marketing Strategy• planned a full list of fund-raising events• ensured that your budget headings and account

books are consistent• ensured that you have the best banking deal

WHAT TO DO WITH YOUR MONEYFor some reason that is hard to identify many com-munity organisations seem to proliferate bank ac-counts. Maybe it’s the tin-on-the-mantelshelf ap-proach: one tin for rent money, one for the gas bill,one for school dinners and so on. Whatever thereason it’s not good practice when it comes to man-aging the finances of a community building.

Unless there are overwhelming reasons to havemore, keep your money in just two accounts: a cur-rent account and a savings account. You have bettercontrol. You pay fewer charges. You earn more in-terest. If you have to have more accounts (some-times, but not very often, funders require you toopen a separate account for a new project), then besure that the signatories for all accounts are thesame. Remember that it is the treasurer, through thegeneral committee, who is responsible for all finan-cial matters and he/she needs control over spending.

Since the Financial Services Act there has beena significant increase in the number of places thatcan look after your money for you. It is wise to shoparound amongst banks and building societies to findthe one that can give you the best service in terms ofcosts, interest and managing the accounts. Don’taccept that your bank is necessarily doing all it canfor you. Enquire about what others have to offer andif they can offer a better service ask for a better dealat your own bank. Remember that you are an attrac-tive proposition to them.

CHARITY ACCOUNTS AND REPORTSPart VI of the Charities Act, 1993 and Part VI of theAct and the Charities (Accounts and Reports)Regulations, 1995 govern accounting, reporting andauditing rules for unincorporated charities. De-scribed below are some of the main points relatingto accounting and reporting. Further information isavailable from the Charity Commission’s account-ing helpline (see page 81).

The Regulations prescribe• audit or independent examination of accounts• the form the accounts must take

Audit/Independent ExaminationUnincorporated charitiesRequirements vary according to the size of the char-ity. At time of writing charities whose income orexpenditure is over £250,000 in the current year oreither of the two previous financial years must havea professional audit. Below that level charities mayhave an independent examination by “an independ-ent person who is reasonably believed by the trus-tees to have the requisite ability and practical expe-rience to carry out a competent examination of theaccounts’. Detailed guidance is given in the CharityCommission’s leaflet The Carrying Out of an Inde-pendent Examination. Very small charities with nei-ther income nor expenditure over £10,000 do notneed to have either an audit or an independentexamination.

However, your governing document – or funder –may require your accounts to be audited. It is possi-ble to change your governing document to bring itinto line with the Regulations (the Charity Com-mission can advise about this) but remember tocheck your funder(s)’ requirements.

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Charitable companiesAll companies’ accounting is regulated by the Com-panies Acts:• charitable companies whose turnover is

£250,000 or above must have an audit by aregistered auditor

• charitable companies whose gross income is lessthan £250,000 but above £90,000 may have acompilation report (a mini audit prepared by anaccountant)

• charitable companies whose turnover is £90,000or less are not required to have an audit or compi-lation report; however, 10% of the membershipmay request an audit even if the company quali-fies for exemption.

Accounts PreparationIn addition to the Charities (Accounts and Reports)Regulations, the Statement of Recommended Prac-tice Accounting by Charities (the Charities SORP),published by the Charity Commission, sets out theprinciples and practices which should be followedby those preparing a charity’s accounts and annualreport. Although not mandatory, the Charity Com-mission expects charities’ annual accounts and re-ports to comply fully with the SORP. The CharityCommission publishes two free guides to SORP forsmaller charities: Accounting for the Smaller Charity(CC54) and Accruals Accounting for the SmallerCharity (CC55).

At time of writing the Charities SORP was underreview, and some proposed changes could have im-plications for some accounting regulations. It islikely that the revised SORP will be published inautumn 2000.

The Regulations are based on two importantconcepts:• the division of the charity’s funds into unre-

stricted, designated (if desired) and restricted(see page 65 for further details)

• the subdivision of income and expenditure into“functional classifications”, organised into a“Statement of Financial Activities” (SOFA).Only charities whose income is above £100,000have to prepare their accounts using a SOFA.

SOFAExpenditure must be classified by function ratherthan by type. For example, equipment for a play-group would appear on the SOFA as “Playgroupequipment” rather than “Equipment”. Expenditureshould be shown under the headings:• direct charitable expenditure (ie relating directly

to the objects of the charity; hopefully coveringmost of the expenditure)

• “other”, including:management and administration (eg trustees’meetings, audit fees, legal fees)fundraising and publicity (comprising only thecosts incurred by a charity “in inducing others tomake voluntary contributions to it”); these costsmust be shown separately, they cannot be allo-cated to projectsAll income (referred to as “incoming resources”

in the SORP) must go through the SOFA. It mustbe subdivided into:• incoming resources from donors• income from investment• income from trading activities in pursuit of the

charity’s objectives• income from trading activities for commercial or

fundraising purposes• any other material incoming resources

Smaller CharitiesIf your charity’s income is £100,000 or below thenyou can produce either:• a simple receipts and payments account accom-

panied by a statement of assets and liabilities; or• a statement of financial activities (SOFA) with-

out using the functional classificationsUnincorporated charities with neither income norexpenditure over £10,000 must prepare accountsbut do not have to submit them to the CharityCommission unless requested to do so; all otherregistered charities must submit accounts within tenmonths of the financial year end.

All charities’ accounts must be available to thepublic on request.

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Annual ReportsCharities with gross income below £100,000 mayprepare a simplified annual report giving a briefsummary of the charity’s activities.

Other charities – both unincorporated and incor-porated – must prepare a full annual report coveringthe following:• a review of all activities• all material transactions• significant developments• achievements• significant events since the year end• future plansCharities with gross income or total expenditure notexceeding £10,000 need only submit their annualreport to the Charity Commission on request. Allother charities must submit their annual report tothe Charity Commission, together with the annualaccounts.

For further details see the Charity SORP.

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FINANCE

USEFUL ADDRESSES

ACRE(Action with Commu-nities in Rural England)Somerford CourtSomerford RoadCirencesterGloucestershire GL71TW

☎ 01285 653477e-mail [email protected]

web site

www.acreciro.demon.co.uk

Arts CouncilsArts Council of England14 Great Peter StreetLondon SW1P 4NQ

☎ 020 7333 0100

☎ 020 7312 0123(Lottery Department)web site

www.artscouncil.org.uk

Arts Council of NorthernIrelandMacNeice HouseBelfast BT9 6AQ

☎ 028 90 385200e-mail publicaffairs

@artscouncil-ni.org

☎ 028 90 667000(Lottery Department)e-mail

[email protected]

web site www.artscouncil-

ni.org

Arts Council of WalesMuseum PlaceCardiff CF1 3NX

☎ 02920 376500information@ccc-

acw.org.uk

web site www.ccc-

acw.org.uk

Scottish Arts Council12 Manor PlaceEdinburgh EH3 7DD

☎ 0131 243 2443/4(Help Desk)

☎ 0131 226 6051(Lottery Department)e-mail

[email protected]

web site www.sac.org.uk

The Carnegie UKTrustComely Park HouseDunfermlineFife KY12 7EJ

☎ 01383 721445

Charity CommissionHarmsworth House13-15 Bouverie StreetLondon EC4Y 8DP

2nd Floor20 Kings ParadeQueens DockLiverpool L3 4DQWoodfield HouseTangierTauntonSomerset TA1 1BL

☎ (for all offices)0870 333 0123e-mail feedback@charity-

commission.gov.uk

web site www.charity-

commission.gov.uk

Charity CommissionAccounts Helpline

☎ 0151 703 1570

Civic TrustThe View6th Floor, GostinsBuilding32/36 Hanover StreetLiverpool L1 4LN

☎ 0151 709 1969e-mail

[email protected]

web site

www.civictrust.org.uk

Commission for RacialEqualityElliot House10/12 Allington StreetLondon SW1E 5EH


web site www.cre.gov.uk

CommunityFoundation Network2 Plough YardShoreditch High StreetLondon EC2A 3LP

☎ 020 7422 8611e-mail

network@community

foundations.org.uk


☎ 020 7226 0189e-mail communitymatters

@communitymatters.org.uk

web site

www.communitymatters.org.uk

Consortium onOpportunities forVolunteeringPO Box 68Abingdon OX14 3UHweb site www.doh.gov.uk/

volunteering

Countryside AgencyJohn Dower HouseCrescent PlaceCheltenham GL503RA

☎ 01242 521381e-mail

[email protected]

web site

www.countryside.gov.uk

Department of Cul-ture, Media and Sport2/4 Cockspur StreetLondon SW1Y 5DH

☎ 020 7211 6200e-mail

[email protected]

web site

www.culture.gov.uk

Department of theEnvironment,Transport and theRegions2 Marsham StreetLondon SW1P 3EB

☎ 020 7944 3000web site

www.detr.gsi.gov.uk

Directory of SocialChange24 Stephenson WayLondon NW1 2DP


web site www.dsc.org.uk

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FINANCE

English Partnerships16/18 Old Queen StreetLondon SW1H 9HP

☎ 020 7976 7070web site

www.englishpartnerships.co.uk



web site www.eoc.org.uk

The EuropeanCommission8 Storey’s GateLondon SW1P 3AT

☎ 020 7973 1992web site http://

europa.eu.int/index-

en.htm

Foundation for Sportand the ArtsPO Box 20Liverpool L13 1HB

☎ 0151 259 5505

Funder Finder65 Raglan RoadLeeds LS2 9DZ

☎ 0113 2433008e-mail

[email protected]

web site

www.funderfinder.org.uk

Greater ManchesterGrants SchemePO Box 352Town HallManchester M60 2LA

☎ 0161 234 3364

Heritage Lottery Fund7 Holbein PlaceLondon SW1W 8NR

☎ 020 7591 6000web site www.hlf.org.uk

London BoroughsGrants5th Floor, Regal HouseLondon RoadTwickenham TW13QS


web site www.lbgrants.org

London VoluntaryService Council356 Holloway RoadLondon N7 6PA

☎ 020 7700 8107e-mail

[email protected]

web site www.lvsc.org.uk

National Assemblyfor WalesCardiff BayCardiff CF10 3NQ

☎ 029 20 825111web site

www.wales.gov.uk

National Council forVoluntary Organisa-tionsRegent’s Wharf8 All Saints StreetLondon N1 9RL

☎ 020 7713 6161

☎ (helpline)0800 798 798e-mail ncvo@ncvo-

vol.org.uk

web site www.ncvo-

vol.org.uk

National LotteryCharities BoardSt Vincent House30 Orange StreetLondon WC2H 7HH

☎ 020 7747 5299e-mail

[email protected]

web site www.nlcb.org.uk

New OpportunitiesFundHeron House322 High HolbornLondon WC1V 7PW

☎ 0845 0000121(England)

☎ 0845 0000122(Wales)

☎ 0845 0000123(Scotland)

☎ 0845 0000124(NorthernIreland)

web site www.nof.org.uk

National LotteryCommission2 Monck StreetLondon SW1P 2BQ

☎ 020 7227 2000web site

www.natlotcom.gov.uk

Regional DevelopmentAgenciesLondon DevelopmentAgency4th FloorRomney House43 Marsham StreetLondon SW1P 4RA

☎ 020 7983 4826

OneNorthEastGreat North HouseSandyford HouseNewcastle upon TyneNE1 8ND

☎ 0191 261 2000web site

www.onenortheast.co.uk

North West DevelopmentAgencyPO Box 37Kings CourtScotland RoadWarrington WA1 2FR

☎ 01925 400 100web site www.nwda.co.uk

Yorkshire ForwardVictoria House2 Victoria PlaceLeeds LS11 5AE

☎ 0113 243 9222web site www.yorkshire-

forward.com

Advantage WestMidlands2 Priestly WharfHolt StreetAston Science ParkBirmingham B7 4BZ

☎ 0121 380 3500web site www.advantage-

westmidlands.co.uk

East MidlandsDevelopment AgencyApex CourtCity LinkNottingham NG2 4LA

☎ 0115 988 8300web site www.emda.org.uk

83

FURTHER READING

FINANCE

Accounting andFinance for Charitiespublished by ICSAPublishing

Accounting by Chari-ties: the New Regula-tions – InformationSheet 10published by Commu-nity Matters

Accounting by Chari-ties: Statement ofRecommended Prac-ticepublished by theCharity Commission

Accounting for theSmaller Charity –CC54published by theCharity Commission

Accruals Accountingfor the Smaller Charity– CC55published by theCharity Commission

Avoiding theWastepaper Basketpublished by theLondon VoluntaryService Council,available fromCommunity Matters

The Carrying Out ofan IndependentExamination: Direc-tions and GuidanceNotes – CC56published by theCharity Commission

Charities andFundraising – CC20published by theCharity Commission

Charity Accounts andReports: Core Guidepublished by the HomeOffice, available fromthe Stationery Office

Charity Accounts –The New Framework –CC51published by theCharity Commission

Charity Accounts:Charities Under the£10,000 Threshold –CC52published by theCharity Commission

Croner’s FinancialReporting for Charitiespublished by CronerPublications

East of EnglandDevelopment AgencyCompass HouseChivers WayHistonCambridge CB4 9ZR

☎ 01233 713 900web site www.eeda.org.uk

South West of EnglandRegional DevelopmentAgencySterling HouseDix’s FieldExeter EX1 1QA

☎ 01392 214 747web site

www.southwestengland.co.uk

SEEDASEEDA HeadquartersCross LanesGuildford GU1 1YA

☎ 01483 484 226web site www.seeda.co.uk

Sports CouncilsSport England16 Upper WoburnPlaceLondon WC1H 0QP

☎ 020 7273 1500

☎ 0845 7649649(Lottery Line)e-mail

[email protected]

web site

www.english.sports.gov.uk

Refer to the phone bookfor English regionaloffices

Sport ScotlandCaledonia HouseSouth GyleEdinburgh EH12 9DQ

☎ 0131 317 7200

☎ 0131 339 9000(Lottery Sport Fund)e-mail

[email protected]

Sports Council forNorthern IrelandHouse of SportUpper Malone RoadBelfast BT9 5LA

☎ 01232 382222e-mail

lottery@sportscouncil-

ni.org.uk

web site

www.sportscouncil-

ni.org.uk

Sports Council for WalesThe Welsh Institute ofSportSophia GardensCardiff CF1 9SW


web site www.sports-

council-wales.co.uk

UnemployedVoluntary ActionFundComely Park House80 New RowDunfermline KY12 7EJ

☎ 01383 620780e-mail

[email protected]

web site – being set up

Volunteering in WalesFundWales CVABaltic HouseMount Stuart SquareCardiff CF10 5FH

☎ 029 20 431700web site

www.wales.gov.uk

West Yorkshire GrantsPO Box 5Nepshaw LaneSouth MorleyLeeds LS27 0QP

☎ 0113 289 8215

☎ 0113 253 0241web site

www.wyg.wyjs.org.uk

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FINANCE

DIY Guide toMarketingpublished by theDirectory of SocialChange

DIY Guide to PublicRelationspublished by theDirectory of SocialChange

Funding for theProvision ofCommunity Centresand Village Halls –Information Sheet 21published byCommunity Matters

Fundraising for RuralVoluntary Actionpublished by theNational Council forVoluntaryOrganisations

Getting Your MessageAcrosspublished byCommunity Matters

Grants from Europepublished by theNational Council forVoluntaryOrganisations

How to Manage YourMoney if You HaveAnypublished byCommunityAccountancy Project,available fromCommunity Matters

Just About Managing?published by LondonVoluntary ServiceCouncil

The National Lottery –Information Sheet 19published by ACRE

A Practical Guide toAccounting byCharitiespublished by theDirectory of SocialChange

A Practical Guide toFinancial Managementfor Charitiespublished by theDirectory of SocialChange

A Practical Guide toFundraising andPublic Relationspublished by ICSAPublishing

Tolley’s CharitiesManualpublished by TolleyPublishing

Voluntary But NotAmateurpublished by LondonVoluntary ServiceCouncil

DIRECTORY OFSOCIAL CHANGE

The Directory of SocialChange publishes alarge number of usefulbooks about fundraisingfor charities andvoluntary organisations,some of which areupdated annually. Aselection of titles isgiven here; for a full listcontact the publishers

The CompleteFundraising Handbook

The Directory of GrantMaking Trusts (3volumes)

Finding CompanySponsors for GoodCauses

Fundraising fromGrant-Making Trustsand Foundations

Good Ways of RaisingSerious Money

A Guide to CompanyGiving

A Guide to EuropeanUnion Funding for theVoluntary Sector

A Guide to Fundingfrom GovernmentDepartments andAgencies

A Guide to the MajorTrusts: Volume 1



Guide to the NationalLottery CharitiesBoard

A Guide to UKCompany Giving

Organising LocalEvents

Organising SpecialEvents for Fundraisingand Campaigning

All Acts of Parliamentreferred to in the text canbe purchased from theStationery Office.

Publishers’ addressescan be found on page180.

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FINANCE

FUND-RAISING IDEAS

Note: All suggestions marked*are, or may be, subject to legalrequirements

Antiques fairsAppeal by press, letter or leafletArt show or Art exhibition ofmembers’ work, or of pictures onloanAthletic events or Field dayAuction of members’/supporters’servicesAuctions

Baby-sittingA BallBalloon raceBarbecueBarn danceBeat festival or ConcertBed raceBeetle drive*BingoBreak dancingBring and buy saleBulb growing contestsBuy a brick (building extensionschemes)

CabaretCarnivalCarol singingCar washingCharity cricket matchesChildren’s crafts/paintingcompetitionsCoffee morningCoins in a fountainConcertCovenanted gifts or loans

DancesDinnerDouble or Nothing – give a sumof money to members to use and

double and so make a profitDutch auction – at a DutchAuction the bidding goessomething like this:1 50 pencebidder places 50p in collecting box2 80 pencebidder places balance (30p) in box3 £1.00bidder places balance (20p) in boxBidding continues until a timefixed in advance and known onlyto the auctioneer – the last biddergets the goods, for which he orshe may only have to contribute10 or 20p, but the total realised ismuch more than this. The morepopular the goods, eg: a chickendinner or a food mixer, the morebids you get.

Empties – collection and returnExhibitions

Fairs at Christmas, Diwali,Easter, etc.Fashion showFestivals – of craft or dramaFete or Gala*Film shows – kiddies or adultFishing tournamentFlower showForeign stamps – sale ofduplicates, etc.Football match – eg: Show BizElevenFortune tellingForums – brains trust, 20questions, etc.Friends of the Association –people who pledge themselves toraise money in various waysFur and feather show50–50 sale

Garden open daysGarden partiesGardeningGardening evening – film orpanel, followed by sale of plantsGo-karting

Halloween partyHat salesHitchin’ box – a collecting boxin the car for contributions to acharityHome decoratingHome made goods– sale ofcakes, sweets, jams, etc.How many? – kids fit in a van,sweets in a jar, items on a table,etc.

Individual gifts and donationsIndoor sports contestsIndustrial appeal – particularlywhere the CO serves workers oflocal factories, etc.International evenings

Jobs about the house, garden orneighbourhoodJumble Sales

*Kiosks to sell refreshments – atroadside, at a fete, etc.(permission required for streettrading)

Lawn mower raceLawn mowingLecture service – for a fee*Lottery

Make-up demonstrationMarathon rock session, scooterrace, etc.*Market stall – second-hand orhome-made goods, etc.(permission required for streettrading)

86

Medieval banquets or FairsModel railway/aircraftexhibitionsMulti-racial festivals

Nearly new saleNewspaper collection

*One-armed banditOutgrown exchange – a sale ofchildren’s clothesOuting by coach, train or barge

PageantsPanel gamesPantomimePennies – a pile of, a jar of, etc.Personality contestsPhoto flash – pictures taken atan eventPlant salePledges – of an hour’s pay,regular donations, etc.*Pool tables (NB if non-members play, a licence may berequired)Potted sportsPram racePuppet shows

Quizzes

RafflesRalliesRecord swapsRetailing of goods boughtwholesale – eg: garden supplies,sweets, etc.

Sale of diaries, key fobs,ballpoints, etc.Sale of workScavenger huntSecond-hand marketSide-shows at other people’sgalas, etc.Snowball tea or coffee morningSponsored events – walks,swims, slimming, hip-hops, etc.Sports days*Street collections (localauthority permission necessary)Swap shopSwimming gala

Talent contest*Toll gate – set up mock tollgates on roads into yourcommunity and erect large signsasking drivers to pay a ‘toll’ toyour CO. Days when traffic islight (eg: Sunday) are best.Remember to get policepermission.Tombola*ToteToy making and SalesTreasure hunt*200 club

Universal helping hands – agroup who are willing to goanywhere and do anything legalfor money

Valentine danceVegetable marketVending machinesVisit a week/month – to homesto take up regular contributionspromised in advance

Waste collection and Sale ofpaper, old clothes, scrap metal,etc.Whist driveWindow cleaning

Xmas card sales*Xmas draw

Your own ideas – according tolocal interests and your ownvolunteers’ capabilities

Zany ideas – slow bicycle races,tramps’ suppers, sponsoredsilences, etc.

FINANCE

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FINANCE

Insurance

55555555555555555555555555555555

88

INTRODUCTION

INSURANCE

A CAUTIONARY TALE

A large (and very real) community buildingwith many staff and much specialisedequipment had a fire one night. It causedextensive damage and, although it was notcompletely gutted, the only way to continueall the services it provided was to completelyre-build.

The building was very old and the insurancecover was based on a valuation made by asurveyor: the kind of valuation you might geton a private house if you want to sell it.

The insurance company was a reputableone. It sent along its assessors and after athorough examination offered £400,000.Meanwhile the community organisation hadhired an architect to draw up plans for re-

building the centre and costings had beenproduced. The costings were thorough andincluded building costs, professional fees, andreplacing the damaged or destroyedequipment. The total cost was going to beover £800,000.

What a fund-raising target!There were several reasons for the huge

difference between the insurance payout andmoney required: the insurance cover was thewrong kind, based on market value ratherthan replacement costs; an averaging clausewas invoked (see ‘How much to insure for’on page 92) and the valuation of the buildinghad not been up-dated for several years.

Yes, the horror stories are true.

There are some similarities between taking out in-surance and registering with a new doctor: it’s wiseto do it but you hope you will never have to availyourself of the service. In the case of the doctor,however, the consequences for not registering areunlikely ever to be disastrous. In the case of insur-ance for your community building the consequencesof not insuring or of insuring inadequately couldinvolve a disaster of the highest order for a lot ofpeople. These could be your committee members,your staff and volunteers, the people you serve orsome innocent third party and their family whohave nothing whatsoever to do with your organisa-tion.

It is crucial, therefore, not only to have all theright insurance cover, but to manage your insuranceand the way you run the community building so thatyou are constantly up to date with payments andvaluations, and so that the cover is increased to takeaccount of rising prices and changes in the value ofwhat needs to be insured.

This chapter aims to set out clearly and simply allthe things that you need to consider when takingout or reviewing insurance. In addition there aresome general explanatory comments and some ideasabout where you might get further help.

All books on the subject tell you about the hor-rors that could ensue if you do not get your insur-ance right. This one will be no different. It is veryeasy, however, to think that these horrors are alltheoretical – they don’t happen to real communitybuildings.

A list of all the kinds of things you might need orwish to insure against follows. Depending on theparticular circumstances of your community build-ing some of the insurance cover is compulsory andsome discretionary.

Do not stop with compulsory insurance. The bestway to decide what you need for your particularbuilding is to go through all the possible insurancecover systematically and decide whether it is desir-able for your organisation to have it.

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INSURANCE

It is probably best to appoint one or two peoplefrom the committee whose job it is to do this on aregular, probably annual, basis. It would be their jobto review all aspects of the insurance including in-creasing valuations, new cover for new activities/equipment/premises, checking legal agreementssuch as leases, adding new names to policies if

required, and checking that insurer’s requirementsare met.

Remember to keep a copy of your policy awayfrom the community building. You will then knowprecisely what your insurance cover is if the buildingburns down.

TYPES OF INSURANCE COVER

PUBLIC LIABILITY INSURANCEPublic liability insurance covers you against claimsfor injury, loss or damage caused to anyone as aresult of the organisation’s negligence. This negli-gence could be to do with the building itself notbeing in a sound condition or with how the buildingis managed, for example leaving floors wet with nonotices.

You should have this insurance whether you ownor lease your building. Even if you lease your build-ing the lease could well stipulate that you mustcover against injuries arising out of defects in thebuilding.

It is wise to take out insurance for all types ofpublic liability. Having said this there may be someitems that you want covered that are excluded froman insurer’s standard policy and some included thatyou don’t want: read the policy carefully, particu-larly the exceptions. Make sure that it covers ac-tions by, and accidents to your committee membersand any volunteers who carry out duties on behalf ofthe organisation.

You may have a number of different groups hiringyour hall on a regular or irregular basis. It is crucialto be sure that all the liability and other insurance isstill valid when they are in occupation. This can bedone in one of two ways. You can require hirers totake out their own public liability insurance and toshow you a copy of the policy. This may be appropri-ate for regular hirers. The other way is for you totake out an insurance which covers the hirers ofhalls. You could recoup the extra cost through thehire charge. The latter option is probably the saferone.

LEGAL LIABILITIES INSURANCEIf someone takes you to court over some kind ofdispute which is not to do with the public or negli-gence then your legal costs will not be covered byyour public liability insurance. For example a profes-sional adviser may take you to court for non-pay-ment of a bill that was much higher than the initialestimate. Community Trading Services (CTS) – thetrading arm of Community Matters – has a policy tocover this eventuality. This type of insurance couldalso cover compensation awarded to employees orothers for discrimination or similar claims, or toemployees for unfair dismissal. CTS provides,amongst other services, a comprehensive insuranceservice for community associations. More is saidabout this later in the chapter.

BUILDINGS INSURANCEWhether you own or lease your community buildingyou may need to insure it against damage by fire or‘other perils’. If you lease it there will probably be aclause in the lease requiring you to insure the prop-erty or – more usually – to reimburse the landlord forthe cost of the insurance. Check the lease carefullyto get the exact requirements. If you own the build-ing, whilst there is technically no legal requirementthat you insure either the building or the contents,it would be very foolish not to, and the committeewould be negligent and could be in breach of trust ifit had left the building uninsured.

This is where you must avoid the mistakes madeby the organisation referred to above and make surethat you get adequate cover. This means insuring forthe cost of completely rebuilding the centre. It iswise to get a professional, ideally a quantity surveyor

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INSURANCE

but never an architect (they often underestimatethe cost of putting up the buildings they design), toproduce a full estimate of what rebuilding wouldcost at current prices. Be sure to include demolitionand site clearance, architects’ and other professionalfees, building costs and any VAT that may be pay-able (for further information on VAT see chapter6.)

For many organisations the cover ends there; butit shouldn’t. Where are you going to house youractivities and staff, if you have any, while the build-ing works are being carried out? If you cancel anyfee-paying activities how are you going to make dowithout the budgeted income? To cover these po-tentially disastrous eventualities you can take outconsequential loss (or ‘business interruption’) insur-ance and/or include the cost of renting temporarypremises in the overall buildings insurance valua-tion.

‘Other perils’ include all sorts of risks that youmay think are unlikely, such as damage caused byaircraft or riots. This insurance does not usually costvery much so it’s probably best to include it.

CONTENTS INSURANCEThis generally covers theft of and damage to equip-ment, machinery and other items in the building. Itwill usually exclude theft by employees or volun-teers – such theft has to be covered by separate‘fidelity’ insurance (see below). Many policies alsocover accidental damage – damage caused by indi-viduals (for example by spilling coffee over a key-board); if your policy doesn’t, it may be worth ex-tending the cover. Again, it is essential to check thedetails of your policy, for example it may not auto-matically cover damage by water. Flooding may becovered in ‘other perils’. Does this also include wa-ter damage cause by a burst boiler or other parts ofthe water system?

You must make sure that the contents are ad-equately valued and that the amount of cover isincreased if you add to the contents. It is advisableto list large pieces of equipment such as computersand printers (if not insured separately – see below)as specified items in your insurance policy. If youhave significant amounts of foodstuffs or other per-

ishable goods in your building check that yourpolicy makes particular mention of them otherwisethey may not be covered. This could cost you a lot ofmoney. Check also that there is specific cover forfreezer failure if appropriate.

It is usually advisable to insure contents for thereinstatement cost of replacing lost or damagedgoods (‘new for old’ cover).

Standard contents insurance does not usuallycover equipment or cash when it is off the premises.If you regularly take significant amounts of cash tothe bank it is best to take out special insurance.Likewise, if you move expensive equipment aboutmake sure it is covered by your insurance at all timesand at all venues. One way of ensuring that yourcash and equipment is covered at all times is to takeout an ‘all risks’ policy.

COMPUTER INSURANCEIt is possible to take out separate insurance for com-puters which, as well as covering loss or damage tocomputers and printers, scanners, etc, also coversreinstating data and the increased cost of working asa result of the damage (for example if you had to runa manual system alongside the computer system for awhile).

PLATE GLASS WINDOW INSURANCELeases for premises with shop fronts often requirethe tenant to insure plate glass windows againstbreakage. It’s an item that some policies do notinclude automatically so check yours.

EMPLOYER’S LIABILITY INSURANCEUnder the Employer’s Liability (Compulsory Insur-ance) Act 1969 all employers must have employer’sliability insurance, which must be for at least £5million for any one claim. This covers you againstclaims for damages from staff if they are injured ordevelop an illness as a result of the organisation’snegligence. It is possible for this insurance to covercommittee members and other voluntary helpersbut does not usually come as standard. If not, be sureto get them included in the public liability cover orask the insurance company to extend the employersliability to include them.

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You must display a copy of a certificate of insur-ance on the premises and keep the certificate for 40years.

ROAD TRAFFIC INSURANCEThe Road Traffic Acts make it compulsory for anyorganisation which owns a vehicle to insure all driv-ers against injury or death to other road users orpedestrians. This is known as ‘third party cover’ andwill include the cost of repairs to the other person’svehicle if the accident was your fault. The certifi-cate of insurance must be readily available.

Although all you require by law is third partyinsurance, it is almost certainly worth taking outextra insurance – either third party, fire and theft(which covers your vehicles in the event of theft orfire) – or comprehensive, which also covers thevehicle in the event of an accident. Comprehensiveinsurance can be expensive, but so is buying a newvehicle or repairing your existing one.

Sometimes committee members, staff or volun-teers use their own vehicles on the business of thecommunity building. If this is the case make suretheir insurance covers this purpose. Depending onthe additional risk, some insurance companies maynot charge extra to cover business use, or may con-sider the purpose is covered under ‘social and do-mestic purposes’. Even if staff and volunteers haveadequate insurance, you should consider taking outmotor contingency insurance, which provides thirdparty cover to employees or volunteers in case theirown insurance has lapsed or is invalid.

FIDELITY INSURANCEMost staff, volunteers and committee members arehonest. Unfortunately some are not and if they haveregular dealings with cash or stock they could costyou a lot of money. Fidelity insurance protects youagainst this. It provides cover, subject to an agreedlimit, for fraud or dishonesty of staff and could beextended to include committee members and vol-unteers.

PROFESSIONAL INDEMNITY INSURANCEThis is an insurance that covers you if you are suedfor giving wrongful information or advice or any

other professional service. If you run an advice serv-ice or give another particular professional service tothe public then consider taking out this insurance.It can be extended to cover against slander or libelactions which might arise if you represent people orwrite letters on their behalf. This kind of insurancecan be expensive, but it is possible to have it in-cluded in specialist policies for voluntary organisa-tions. Alternatively you could see if it is possible toshare this insurance with other similar organisationsin your area.

EQUIPMENT FAILUREComputer insurance is covered above (see page 90).The other main piece of equipment that could costyou a lot of money to repair is the central heatingboiler; and if it stays out of action for any length oftime during the winter you will have to close thebuilding and this could result in serious loss of rev-enue. It may be possible to get separate insurance;alternatively an all risks policy may be the answer.

Sometimes the suppliers of such equipment willbe able to offer you suitable insurance policies tocover failure.

PERSONAL ACCIDENTThis is an insurance that provides compensation tostaff, volunteers or committee members who havean accident during the course of their business onbehalf of the community building. This is distinctfrom the risks covered under the employers andpublic liability insurance.

A person insured in this way will receive a par-ticular sum for injuries and incapacity resulting froman accident at the centre. It will be either a weeklyamount during any time off work or a lump sum forloss of use of one or more limbs. It could of course beboth. Personal accident policies usually give a lumpsum to the next of kin in the event of death result-ing from an accident.

TRUSTEE INDEMNITY COVERThis offers protection against liability for acting inbreach of trust, which could, in theory, fall on indi-vidual committee members. Some people may notbe prepared to serve as committee members unless

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they are protected by this type of insurance, andsome local authorities now require it before makingnominations to management committee.

In order for a charity to take out trustee indem-nity insurance it needs to have a power in its gov-erning document which specifically authorises thetrustees to buy such insurance; a general power orduty to insure that charity’s assets is not sufficient.Any change to a constitution to include such apower must first be cleared with the Charity Com-mission. The Commission has agreed two alterna-tive versions of a clause covering trustee indemnityinsurance for Community Matters’ model constitu-tion. See Community Matters’ information sheetsno 39: Trustee Liability Indemnity Insurance and no6(b) Model constitution for a community association forfurther details.

OTHER KINDS OF INSURANCEIt is possible to insure against practically anything.Some of the risks you might need to think aboutgetting cover for might not be included in the types ofinsurance mentioned so far. For example you mayhave karate classes and consider it wise to take outspecial insurance to cover accidents to participants ortutors. Or you may have one-off events such as opendays or festivals or sponsored walks. Whatever it is itis important to consider whether special insurance isneeded. Ask for a special quote. The premiums areoften surprisingly low.

OTHER MATTERS TO DO WITH INSURANCE

There are a number of other things that it is impor-tant to know in relation to insuring your communitybuilding and the things, people and activities thatare connected with it.

DISCLOSUREThe first is that you have a duty to disclose to theinsurance company ‘material facts’ – anything thatmay affect your insurance. Honest answers to all thequestions on the proposal form will normally suffice;but, as ever, it doesn’t necessarily end there. If any-thing happens after you have filled in the form andbefore the insurance has been confirmed that mightmaterially affect the policy, you must tell the com-pany. Again at renewal time it is important to checkwhether circumstances have changed and if so totell the insurers.

Facts you have to declare when taking out theinsurance or later, if your circumstances change,include: previous refusals of or special conditionsimposed upon similar insurance; criminal convic-tions of staff or management committee members;the fact that the public use the premises; road trafficconvictions; drivers’ ages; activities carried out by

the organisation; the use to which vehicles may beput.

HOW MUCH TO INSURE FORThis is an absolutely crucial question. The organisa-tion referred to in the cautionary tale was seriouslyunder-insured and this, amongst other things, led tothem not receiving anywhere near enough money toreplace the building adequately. So make sure youget proper valuations and have them updated eachtime there is a change to the building or the con-tents, and annually – whether or not there’s been achange.

Under-insurance can cost you dearly. At worst itcan mean that the insurance company can refuse topay out at all. What is more likely, however, is thatan ‘averaging clause’ will be invoked. This meansyou will only receive a proportion of what you need.For example if your building is in fact worth£500,000 but you only have it insured for £300,000you will only receive three fifths of the agreed esti-mate of the cost of any claim. This is because youonly have it insured for three fifths of its value.

It is important to get it right, therefore, and if you

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are not sure just how much to insure things for askothers who have experience of insuring communitybuildings and organisations.

The recommended minimum cover for publicliability cover, for example, is £5 million. It mightneed to be considerably more depending on therange of activities and other matters affecting yourbuilding. If you have any doubt get professionaladvice.

Even if you take the trouble to get propervaluations and therefore to insure for just the rightamount it is still possible to become under-insured.The problem is inflation. Many insurers automati-cally index-link their policies, but some do not so itis important to check.

WHO SHOULD TAKE OUT THEINSURANCE AND WHO SHOULD BEINSUREDAs with many other aspects of managing a commu-nity building insurance is affected by the status ofyour organisation (see chapter 2). If you are anunincorporated body then one of your committeemembers will have to take out the insurance onbehalf of the association. It must be made clear onthe application that this person is taking it out onbehalf of the management committee and membersof the association. If you are an incorporated bodyyou can take the insurance out in the name of theorganisation.

In either case you must make sure that the policyspecifically covers all the people you want coveredfor all the actions for which you want them covered.

In other words you need to insure all the actions ofcommittee members, staff, and volunteers when act-ing on behalf of the association. In some cases thismay mean extending the standard cover offered byan insurance company.

SECURITY ARRANGEMENTSWhen taking out or reviewing your insurance coverit is a good idea also to review your security arrange-ments. There may be some things that the insurancecompany stipulates, such as certain types of lock,having a safe of a certain specification, installing analarm and maybe putting on window locks. You willhave to carry out all these as a matter of course but itis wise to take the opportunity of checking up onother things too.

Are your key-holder arrangements adequate?Are there vulnerable parts of the building which

give easy (and perhaps quite secret) access to un-wanted guests?

What about the money handling arrangementsand the banking arrangements? Who takes themoney to the bank? Is it just one person or is therean escort? Do you vary the time and the route?

Have you considered having an alarm installed?If not then it is highly advisable that you do espe-cially if you keep drink or cash on the premises.

These are just a few ideas to check. It would behelpful to ask the local crime prevention officer tocome and walk round the building with you. Theyare more than willing to give you helpful advice andusually will give you names of reputable securityinstallation firms.

WHERE TO GET YOUR INSURANCE

People with experience of insuring communitybuildings are the best people to turn to. In my expe-rience it is better to deal through an agent whoknows a lot about both insurance and the specificneeds of community organisations and charitiesrather than directly with an insurance company. Inthis way you will probably get a better deal and abetter service. Community Trading Services (CTS),

the trading arm of Community Matters, has built upa mass of experience and information on the insur-ance needs of community organisations. In additionit has developed very comprehensive and competi-tively priced insurance packages with reputable in-surance companies. Even if you already have whatyou feel is adequate insurance CTS will give you acomparative quotation free of charge so you can see,

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INSURANCE CHECKLIST

Has your organisation carried out the followinginsurance tasks?:• appointed one or two people to have special

responsibility for all insurance matters within yourcentre

• checked that all your needs are covered using theforegoing list of types of insurance

• filed a copy of your insurance policies away fromthe community building

• checked that your buildings cover is for completere-building and all professional fees

• checked that the contents cover is new for old• updated all the valuations contained in your policies• told your insurers all that you are required to, for

example that volunteers and/or the public use thebuilding; that the premises are hired out

• checked with CTS that you have the best insurancedeal

• made a list of all the special requirements made inyour policies

• checked your security arrangements

without any obligation, whether it is advantageousto change insurers. They could well be the bestpeople to sort out your insurance needs. You willfind their address at the end of the chapter.

Action with Communities in Rural England(ACRE) has a similar scheme aimed specifically atvillage halls. Its address is also given at the end ofthe chapter. If you feel that you want a more localservice or, for whatever reason, do not want to useCTS or ACRE it is still wise to go through anintermediary who will handle all your dealings withthe insurance company. Such people are called bro-kers.

Insurance brokers earn their living by selling in-surance. They are independent professionals andnot tied to one particular insurance company sothey will be able to give you independent advice.Like CTS their service is free as they get theirincome by way of commission from the companiesthey place the business with. Not all brokers, how-ever, are knowledgeable about the special needs andidiosyncrasies of community buildings and commu-nity organisations so if you do decide to get yourinsurance via a broker ask around first.

HOW TO MAKE A CLAIM

As soon as you have any reason to make a claimcontact your agent or broker and they will tell youwhat to do.

In all cases you will have to fill in a claim formwhich the agent or broker will give you. Fill it in ingood time, having checked whether there are anytime limits set down in the policy for making a claimor reporting an accident, theft or other occurrence.

The policy may be specific about certain thingssuch as contacting the police in the event of a theft.Liability for an action may be in doubt. If the policydoes make stipulations on such matters always makeabsolutely certain of the position before you contacta third party and never admit liability to a thirdparty even if it is obvious that you are at fault. Notmany insurance companies refuse to pay out in thesecircumstances but some do.

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USEFUL ADDRESSES

FURTHER READING

Charities and Insurance –Leaflet CC49published by The CharityCommission

Insurance Guide for VoluntaryOrganisationspublished by the NationalCouncil for VoluntaryOrganisations

Insurance Information SheetPublished by CommunityTrading Services

Protecting Volunteerspublished by The NationalCentre for Volunteering

Tolley’s Charities ManualPublished by Tolley Publishing

Trustee Liability Insurance –Information Sheet 39published by CommunityMatters


Volunteer Drivers and Taxpublished by The NationalCentre for Volunteering




web site www.acreciro.demon.co.uk

British Insurance Brokers’AssociationBIBA House14 Bevis MarksLondon EC3A 7NT


web site www.biba.org.uk


☎ 020 7226 0189e-mail

[email protected]

web site


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A CAUTIONARY TALE

A bar in one community building wasmanaged, as it should be, by a separated outsocial club (see chapter 7). The committeeemployed one barman but often usedvolunteers to help out behind the bar on busyoccasions. The barman would give thevolunteers a free drink from time to time inrecognition of their help. The drinks wereserved but as no payment was made nothingwent through the till.

It was a popular community building sovolunteers were used regularly. The socialclub was registered for VAT.

On a routine visit the VAT inspectornoticed that the income from sales of beerand other drinks was lower than might beexpected considering the prices charged, theamount of drinks bought in from the brewery

and the standard allowance for ullage – theamount of beer that gets wasted in thenormal course of running a bar. It wasexplained that volunteers were given freedrinks. The VAT inspector informed them,quite properly, that VAT was due on thesefree drinks and, as the organisation could notgive accurate information, the bill wascalculated by the VAT inspector. Hissuspicions about the organisation werearoused as a result of the sloppy andtechnically dishonest practice of notaccounting for the volunteers’ beer and hetherefore dug around and found several otherways of charging back VAT to theorganisation. The bill amounted to £6,000 andwent back over 3 years – it would have beenmore if they had been registered longer.

INTRODUCTION

As managers of a community building you mustconsider your liability to pay rates and taxes to oneor more public bodies: the Inland Revenue, Cus-toms and Excise and the local authority. The rates,taxes and other charges that you may have to pay arecorporation tax, income tax, capital gains tax, valueadded tax and business rates. If you have paid em-ployees you will also have to make payments to the

Inland Revenue for income tax and national insur-ance; this is dealt with in chapter 3 – Staffing.

This chapter tells you something about each ofthe other charges and in some cases urges you to getmore information and check the fine print in orderto prevent financial penalties occurring. As ever,ignorance of the law is no excuse.

TAXES LEVIED BY THE INLAND REVENUE

CORPORATION TAXCorporation tax is the tax levied on the profits ofbusinesses and organisations involved in trading.

Registered charities and other bodies with whollycharitable purposes are exempt from corporation tax.

Many of the most likely ‘trading’ activities asso-ciated with community buildings such as the sale ofcrisps and light refreshments at the youth club, orrunning jumble sales are, to all intents and purposes,

not considered as trading activities for corporationtax purposes (although they might be for VAT pur-poses: see page 101) and so will not render thecommittee liable to tax.

There are other activities carried on in connec-tion with community buildings which are definitelyconsidered as ‘trading’ activities for the purposes ofcorporation tax. These include the regular sale ofsecond-hand goods in a charity shop (except where

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they are wholly donated), running a café on a regu-lar basis and, perhaps one of the most common, thesale of alcoholic beverages from the building’s bar. Ifany of these services form part of your programme,or indeed any other services for which you make acharge, you could be liable for corporation tax. Ifyou do trade but you make no profit then of courseyou will pay no tax.

For an organisation to carry out any trading, thismust be allowed for in the governing instrument.

Registered charities have limited powers to trade.Permissible trading activities include those directlyin pursuit of your charitable aims, known as ‘primarypurpose trades’, or those that involve the beneficiar-ies of your charitable purposes. For example you mayrun a sheltered workshop for disabled people andsell the products they make. This does not affectyour charitable status or your liability for corpora-tion tax. (The rules are different for VAT – page101.)

A charity may also carry out occasional tradingwhich is not primary purpose, for example smallfund-raising events such as bazaars, jumble sales,carnivals, firework displays and similar activities.The Inland Revenue will not tax the profits of suchevents provided that:• the charity is not regularly carrying on these

trading activities• the trading is not in competition with other trad-

ers• the activities are supported substantially because

the public is aware that any profits will be de-voted to charity, and

• the profits are transferred to charities or other-wise applied for charitable purposes.

Profits from ‘small’ lotteries incidental to a exemptfundraising event are exempt from tax. Under theFinance Act, 1995, profits from ‘society’ lotteriesrun by charities are also exempt (see page 116).

Another possibility is when a charity is involvedin trading activities ancillary to the carrying out of aprimary purpose trade. One common example incommunity buildings is running a café.

Under the Finance Act, 2000 charities are alsoexempt from paying tax on small-scale non primary

purpose trading provided that:• the total turnover from all trading and other

incidental fundraising activities does not exceedthe annual turnover limit (see below), or

• if the total turnover exceeds the turnover limit,you had a reasonable expectation that it wouldnot do so at beginning of the financial year inwhich the trading commenced, and

• the profits are used for the purposes of the char-ity.

The Charity Commission can still refuse or retract,charitable status if it believes any trading is unchari-table, so if in doubt it is advisable to check with theCommission before you start to trade.

Annual Turnover LimitThe annual trading turnover limit on which profitswill be exempted from tax is:• £5,000, or• if greater than £5,000, 25% of the charity’s gross

income, up to a maximum of £50,000, (for exam-ple, if non-charitable trading turnover is£25,000, to qualify for tax relief the total grossincome of the charity must be at least £100,000 –ie £25,000 x 4).

Fundraising events that qualify for VAT exemption(see page 103) also qualify for exemption from in-come tax and corporation tax.

If your community building engages in someother sort of regular trading activity apart from thosementioned above you will not be able to register as acharity. If you carry on a substantial, regular tradeyou may still be required by charity law to set up asubsidiary company to carry on the trade, even if theprofits are exempt, for example a social club to runthe bar or distinct body to run the ‘charity’ shop(unless it is only selling donated goods). A charity’swholly owned subsidiary company can then make apayment to the parent charity by covenant orthrough Gift Aid equal to its taxable profits (iewithout deducting tax), within nine months of theend of its accounting period, and obtain tax reliefwhen calculating its profits for corporation tax.Separated social clubs are not considered to bewholly owned trading subsidiaries of the charity.

Under charity law the charity must not subsidise

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the activities of the trading company. It is thereforeessential that the trading company is charged thefull cost of any of the charity’s resources used. Thiscould include premises, electricity, insurance andstaffing. However, it is important that the charity isnot tempted to strip the profits from the tradingcompany through excessive charges – this couldwell result in the charity itself making a taxableprofit.

As you can imagine this is an area where special-ist knowledge and advice is vital. Community Trad-ing Services, the trading arm of Community Mattersare experts in it and it is sensible to seek theiradvice.

INCOME TAXIf you are fortunate enough to have money to invest,whether in a deposit account or in stocks and sharesyou are liable to pay income tax on the interestreceived on the investment. If you are a charity youare exempt from this liability. The trouble is thatthe interest on many investments is taxed at source,in other words you receive the interest after the taxhas been deducted. Registered charities can claimthis back by writing to the Inland Revenue. Banksand building societies, however, will pay interestgross, that is without deducting tax, to registeredcharities so long as you give them your charitynumber.

If you invest your money either in a NationalSavings Investment Account or with the CharitiesOfficial Investment Fund your interest will be paidwithout the deduction of tax. You will want tocheck rates of interest, of course and, in the event ofrates being better with investments which pay ‘net’,weigh up whether the difference is worth the extrawork in reclaiming the tax.

CAPITAL GAINS TAXThis is a tax payable on the profits made when yousell a capital asset. Once again, charities using thefinancial gain for charitable purposes are not liablefor this tax.

STAMP DUTYUnder the Finance Act, 1982 charities are exemptfrom stamp duty when buying or leasing property, orbuying shares. In order to benefit from this conces-sion, a charity must obtain an exemption certificatefrom an Inland Revenue Stamp Office (addresses inthe phone book or on the Inland Revenue web site –www.inlandrevenue.gov.uk). The property transac-tion will still need ‘stamping’ but there will be nocharge.

FURTHER HELPAll the taxes mentioned in this section are dealtwith by the Inland Revenue. After consulting anyfinancial adviser you may have, your accountant orauditor, the local office of Her Majesty’s Inspector ofTaxes is the starting place for more detailed infor-mation and advice.

Tolley’s Charities Manual is a looseleaf servicewhich provides detailed information and guidanceon all aspects of the taxation, finance, accounting,legal and administrative background of runningcharities. It is, however, aimed at accountants andcosts £115, and is therefore something you maywant to try to borrow rather than buy. The InlandRevenue’s booklet Trading by Charities (CS2) pro-vides clear guidelines on the tax treatment of char-ity trading. Suggestions for further reading are givenat the end of the chapter.

VALUE ADDED TAX

GENERALValue added tax (VAT) is something everyoneknows about as it is added on to the bottom of manybills, whether for goods or services that we buy inthe course of our daily lives.

VAT is levied on the purchases you make foryour community building, just as it is on those youmake for your personal use. The question for a com-munity organisation to answer is: do we have tocharge VAT on our goods and services?

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In this respect VAT, like corporation tax, is onlyreally relevant if you are involved in business activi-ties. This phrase not only covers those activities wecall trading but may also include things such ashiring out your hall. You may not think of this as abusiness activity but, for purposes of VAT, it is. Toadd to the confusion, whilst carrying out businessactivities may render you liable to register for VAT,this only applies if you exceed a VAT ‘threshold’and in calculating this some activities are ignored.

Unlike the situation with corporation tax, chari-ties are not exempt from the need to register forVAT simply by virtue of their charitable status. Toall intents and purposes your community organisa-tion is treated like any other body when it comes toconsidering whether you have to register and there-fore separately account for VAT. So, if your com-munity organisation does not engage in any businessactivity, that is provide goods or services for pay-ment (even if the payment is less than the full valueof the goods or services), then you need not worryany further about registering for VAT.

Customs and Excise calls the goods and servicesyour organisation provides ‘supplies’ and designatesthem as ‘exempt’ or ‘taxable’. If your organisation,like the vast majority of others managing commu-nity halls, is conducting business activities as de-fined above, it will only have to register for VATpurposes if at any time the total value of its taxablesupplies (not its profit) for the previous twelvemonths (or less if you have been in business for lessthan twelve months) exceeds, or looks as if it isabout to exceed, a certain limit (increased annu-ally), which in 2000/01 is £52,000.

You may therefore be able to make a quick checkon your organisation’s need to register for VAT bytaking its annual income and deducting the pro-ceeds from lettings, bingo, grants and donations andinterest and investment income, all of which areeither exempt or non-business. If the total is clearlybelow the limit you need do nothing at all. If thetotal is nearing the limit and/or if you are not quitesure whether you need to register your organisation,then check with the local VAT office, as penaltiesfor non-registration or late registration can be con-siderable. You may still be able to benefit from cer-

tain concessions for charities, however, even if youare not registered for VAT. (See: ‘Purchases - someconcessions for charities’ later in this chapter.)

SOME DETAILS OF VATIf you do exceed the limit and thus have to

register you will be required to charge VAT on yourgoods and services and account for it on a quarterlybasis to Customs and Excise. Your sales relate tothings going out from your business and are there-fore called ‘outputs’ in VAT terminology. Thus thetax you charge your customers is called output tax:you are collecting this on behalf of Customs andExcise and so have to pay it over to them.

By the same token what you have to purchase inorder to be able to make your goods or provide yourservices are called ‘inputs’ in VAT jargon, and anyVAT charged on them is called input tax. You canclaim input tax back from Customs and Excise on allpurchases associated with the goods or services yousell, unless they are exempt or related to non-busi-ness activities. What you do is subtract the amountof input tax from the amount of output tax and handover the difference to the VAT office. If you paymore input tax than you charge in output tax youcan claim the difference back from the VAT office.

There are three rates of VAT – standard rate(currently 17.5 %), some supplies of fuel and power– ie gas and electricity, and some other items –(currently 5%) and zero-rate (currently 0%). Thereason for having a tax that amounts to nothing isthat, although you do not have to charge tax onzero-rated items their value does count towards theoverall value of taxable supplies that determineswhether or not you have to register. And of coursethe zero rate may, at some time in the future, bechanged.

If you are registered for VAT you have to keepdetailed records and vouchers of all your businesstransactions in connection with both output andinput tax. You will be subject to inspection by Cus-toms and Excise officials. You have to keep detailedrecords of purchases and can only claim input tax forthose for which you have proper tax invoices – ie aninvoice or receipt from the supplier with its VATnumber printed on it. This applies to petty cash

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payments as well as other purchases. The inputs andoutputs of all the activities of the organisation mustbe accounted for, including those of the differentsections you may have. As the tax and the liabilityto register for the tax is calculated on the totalamount of taxable supplies and not the profits, it isvital that sections inform the Treasurer of all theirincome and expenditure and not just the net surplusor deficit. (It is, of course, good accounting practicefor this to happen regardless of VAT.)

ONE OR TWO SURPRISESIf you are registered for VAT you may not be awareof one or two items of your ‘supplies’ upon whichyou have to charge VAT, or at least account for andpay over to Customs and Excise. One is admissioncharges for certain activities (although charges forsome fund-raising events are exempt – see‘Fundraising – some concessions for charities’, page103). Another is subscriptions or membership feeswhen members receive more than just the annualreport and accounts in return, in other words whenthe membership fee buys some kind of service. Someorganisations, however, have been successful in ne-gotiating partial exemption on membership fees.

There may be more as, for example, reported inthe cautionary tale. Be sure to clarify it all with yourlocal VAT office.

VOLUNTARY REGISTRATIONIf you are engaged in business activities but fallbelow the limit requiring you to register there maybe circumstances in which it is beneficial to applyfor voluntary registration. The reason is that theamount of the input tax that you claim might bemore than the output tax that you charge. If youthink this might be the case contact your local VAToffice to find out whether you are eligible and howto apply.

It is important to check the VAT rating of yourmain goods and services which you supply for pay-ment when considering applying for voluntary regis-tration. If a significant proportion are zero-ratedthen it might be worth applying. It is, for example,useful to know that, for charities, sales of donated

goods are zero-rated. Another important considera-tion, however, is the time it takes to do the account-ing. It can be considerable and many people thinkthat if you do not need to register it is best not tobother. Also, if you register voluntarily you willhave to charge VAT on all taxable supplies.

WHAT IS, AND WHAT IS NOT ATAXABLE SUPPLY?To determine how much of your income is taxablein VAT terms, you need to sort out all your activi-ties and the income they bring in into four catego-ries: ‘non-business’ and therefore outside the scopeof VAT; ‘business’ but exempt; ‘business’ and zero-rated; ‘business’ and standard rated.

The following list, whilst not exhaustive, catego-rises the most common activities of organisationsrunning community buildings.

Non-businessThese are not included in the calculation of theorganisation’s taxable income.• Voluntary services given free of charge in accord-

ance with the objects of the charity• Supplies made for below cost for the relief of

distress: these supplies must be made at least 15%below cost and effectively funded by the charity’sown resources

• Proceeds of flag days or house to house collec-tions

• Grants and donations which are not the consid-eration for services rendered

• The selling of advertising space in charity bro-chures to private individuals (but not to com-mercial organisations, and only if private adver-tisements make up at least 50% of the advertis-ing)

• Dividends paid on shares owned by a charity• Membership subscriptions to charitable and

similar organisations – but only if the payment ofa subscription secures for its members entitle-ment to nothing more than the right to receivecopies of accounts of and reports on their activi-ties, and the right to vote at general meetings

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ExemptVAT cannot be charged on exempt items nor re-covered on related purchases. Items which are ex-empt do not count towards the threshold.• Hiring out a charity-run building, although there

is an option to waive exemption (see page 104).• Welfare services and related goods supplied by

charities when made ‘otherwise than for profit’:this means that if a profit is made it is usedentirely for the service on which it is made andnot for any other charitable purpose

• Receipt of interest by charities on funds kept inbuilding society or bank accounts

• Some fund-raising events by charities or other simi-lar non-profit-making bodies (see ‘Fundraising –some concessions for charities’ – below)

• Subscriptions to non-profit-making youth clubsserving mainly members who are under 21. Thiscan also include extra fees paid for facilities di-rectly related to the club’s ordinary activities, butnot entertainment, goods which are sold, food,drink and purely recreational holidays

• Lotteries and bingo (but not gaming machinestakings)

• Nurseries, crèches and playgroups which are reg-istered under the Childminding and Day CareRegulations, 1992

• Education and training, if not carried out forprofit

• Sporting and physical education services sup-plied by non-profit making organisations to indi-viduals

Zero-ratedVAT is not chargeable on zero-rated supplies. Theydo, however, count towards the registration thresh-old and have to be accounted for after registration.• Sales of donated goods by a charity or by any

VAT-taxable body donating to a charity all theprofits from the sale of donated goods (such as acharity’s trading subsidiary)

• Sales of donated goods to the general public, todisabled people or to people receiving meanstested benefits

• The hire of donated goods if the sale would havebeen zero rated

• Publications, including books and newsletters

Standard-rated• Membership subscriptions, payment of which

confers benefit other than those mentionedabove under Non-business, such as free advice,information and the organisation of social activi-ties. Membership fees of community associationsand sections are likely to be taxable

• Admission charges, except for ‘one-off’ fund-rais-ing events held by a charity

• Food and drink to be consumed on the premises,and hot take-away food and drink

• Certain items of cold take-away food, eg ice-cream, confectionery, chocolate biscuits, alco-holic drinks, soft drinks and crisps

• Sale of posters, diaries and calendars, greetingscards

• The selling of advertising space to commercialorganisations

FUNDRAISING – SOME CONCESSIONSFOR CHARITIESThe Finance Act, 2000 extended VAT concessionson fundraising activities. Charities and some othernon-profit making bodies are now exempt from pay-ing VAT on up to 15 fundraising events of any kindheld in any location, within a financial year. Anexempt event is defined as one which is organisedand promoted primarily for the purpose of raisingmoney, and includes events accessible through elec-tronic communication.

There is no restriction on the number of small-scale events of any one kind, such as coffee morn-ings, as long as weekly gross takings for such eventsdo not exceed £1,000.

Any fundraising event that meets the criteria forVAT exemption will automatically also qualify forexemption for income tax and corporation tax.

PURCHASES – SOME CONCESSIONS FORCHARITIESIf you are a charity (whether registered or not)certain goods and services which you purchasewhich otherwise would be standard-rated can becharged to you at zero rate. This zero-rating is usu-

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ally dependent on you, the charity, providing thesupplier with a written declaration of your eligibilityfor zero-rating.

Concessions include:• Charity advertisements – including recruitment

advertising – in all media (including a web siteother than the charity’s). Recruitment can be forpaid staff or volunteers, and advertisements nolonger have to include a statement of the chari-ty’s objectives

• Design and production services and other closelyrelated services, excluding a charity’s overheadsfor producing its own adverts

• Providing, extending or adapting bathrooms foruse by disabled people in day centres and othercharity premises

• Talking books and radios for blind people• Supplies of aids for disabled people to a charity

for use by disabled people• Donations by a charity of specified medical and

scientific equipment to a health authority, hospi-tal or charitable institution that provides medicalcare or treatment

• Catering for meals on wheels• Construction of some new buildings – see below

concessions on buildings and constructionBelow is an outline of the concessions, but this is aparticularly complex subject, and you should getprofessional advice before embarking on any con-struction project.

Zero rating can only apply to new buildings. Thedefinition of a ‘new building’ is not always clear –particularly when part of an existing building isretained, or when the new structure is joined to anexisting building. It includes those constructed:• making use of the foundations of an existing

building, when the whole of the former buildinghas been demolished

• on the remains of a building, where all that re-mains is the foundation and façade, where thefaçade has to be retained to comply with plan-ning consent

Qualifying BuildingsBuildings qualifying for zero rating includes:• Construction of a building for a ‘relevant’ chari-

table purpose – either as part of the charity’s non-business activities or as a village or similar hallproviding social or recreational community fa-cilities

• Construction of a ‘relevant residential building’ –a residential building with shared facilities suchas kitchens and bathrooms, for example a chil-dren’s home or an old people’s home

• Construction of an independent annex on to anexisting building for a relevant charitable pur-pose (see above) – the annex must have its ownentrance and be capable of functioning inde-pendently from the existing building

• Services related to the construction, excludingarchitects, surveyors, consultants or anyone act-ing in a supervisory capacity. However, it is possi-ble for the contractor to agree an all-inclusivedesign and building contract that would includethese services, which would therefore be zerorated.

The complete range of goods and services covered isset out in VAT notice 701/1/95 – Charities availablefree from your local VAT office (listed in the phonebook under ‘Customs and Excise’). There are anumber of other relevant VAT notices and leaflets,some of which are listed at the end of the chapter.Some material can be downloaded from the web sitewww.hmce.gov.uk/notices. Another useful publica-tion is A Practical Guide to VAT for Charities, pub-lished by the Directory of Social Change.

You can, under certain circumstances, choose towaive exemption (ie opt for tax) on land or build-ings. This would mean that income derived fromlettings would then count towards your VATthreshold and your chances of registering for VAT,if you think that would be advantageous, wouldincrease. The advantage of doing this could be thatyou could recover VAT on items related to manag-ing the building. In return, however, you wouldhave to charge VAT on all your lettings. Waivingexemption on land or buildings is a complicatedmatter, and once you have done it, you cannot goback. So if you decide to do it make sure you getdetailed information about it first, and try to findsomeone else who has taken this route to learn fromtheir experience.

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RATES AND TAXES

FUEL AND POWER SUPPLIESFuel and power supplies to a building used entirelyfor domestic purposes or for non-business charitableactivities (‘qualifying purposes’) are taxed at 5%.(Hiring out rooms is a business activity, so is mem-bership which confers substantial benefits.) If atleast 60% of the building is used for a qualifyingpurpose, then fuel and power supplies can be rated at

5%; if less, then supplies of fuel and power may beapportioned between qualifying and non-qualifyinguses with the non-qualifying portion taxed at17.5%.

Besides these instances, supplies of fuel andpower below certain specified low quantities willautomatically be rated at 5% whatever the use of thebuilding.

RATE RELIEF

All organisations whose objects are charitable,whether registered or not, receive 80% mandatoryrelief on National Non-Domestic Rates. Clearly theeasiest way to prove charitable status to the localauthority is to register as a charity and send theauthority a copy of your registration document. Inany case, if your organisation is charitable, in mostcases you have a duty in law to register with theCharity Commission (see chapter 2). The cost ofmandatory rate relief for charities is met from thegovernment-controlled non-domestic rate pool.

Local authorities have powers to grant additionaldiscretionary rate relief to charities and can alsogrant discretionary rate relief of up to 100%. toother voluntary organisations such as sports clubsEach case must be considered on its merits. Thegovernment does not allow local authorities to takeblanket policy decisions to give no discretionaryrelief. Twenty-five per cent of discretionary rate

relief to charities, and 75% of discretionary relief tonon-charitable voluntary organisations is also metfrom the non-domestic rate pool.

Applications for discretionary rate relief are sub-ject to certain criteria laid down by the Departmentof the Environment, Transport and the Regions.These include: open access – the active encourage-ment of participation by such groups as young peo-ple, people with disabilities, people from minorityethnic communities, older people; the type of serv-ices provided – for example, to help develop theskills of one or more of the above groups; andwhether their provision directly or indirectly re-lieves the authority of the need to make its ownprovision. The criteria suggest that the provision ofa bar in the community building should not, ofitself, be a reason for refusing discretionary relief –the authority should look at the main purpose of theorganisation.

WATER AND SEWERAGE CHARGES

Water and sewerage charges are made by the priva-tised water companies. There is no relief – eithermandatory or discretionary – for charities.

You have the option of having your water con-sumption metered and paying for how much youuse. Doing this may save you money (although youwill still have to pay a standing charge, regardless ofyour usage) but if you are a heavy user it may not.Your water company should be able to give you arough idea of how much water you will use, and thecost. You may have to pay for installation of the

meter (which could involve extra plumbing), butsome companies will install a meter free of charge,and allow you a year to compare costs. Meter instal-lation can be carried out either by the water author-ity or private engineers. Some firms offer guaranteedsavings. As with all such offers it is crucial to readthe ‘small print’ before signing any agreement.

OFWAT – the Office of Water Services –(address on page 106) is an organisation lookingafter water consumer interests. There are 11regional offices.

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RATES AND TAXES CHECKLIST

Has your organisation carried out thefollowing rates and taxes tasks:

• checked the situation with regard tocorporation tax liability

• registered with the Charity Commissionersif the purposes of your organisation arecharitable

• informed your bank and building societythat you are a charity (if applicable)

• separated off any significant tradingactivities – bar or charity shop

• set up Gift Aid arrangements betweentrading subsidiaries and main buildingassociation

• set up a system for ensuring that paymentsrelating to covenants are adequate

• reclaimed tax on investments• considered putting spare cash in

investments that pay dividends gross iebefore deduction of tax

• checked the situation with regard to capitalgains tax

• checked the VAT position generally andlooked at the following in particular:– the need to register for VAT ie zero and

standard-rated business activities inexcess of the current VAT threshold(£52,000 in 2000/01)

– accounting for all the output tax youshould be eg free drinks, if you areregistered

– whether voluntary VAT registration isadvantageous

– taking advantage of zero-ratingconcessions to charities whereverapplicable

• checked your rates bill to ensure you havethe best deal with regard to:– mandatory relief, if you are a charity– discretionary rate relief

• considered the economics of having yourwater metered


☎ 020 7226 0189e-mail

[email protected]

web site


Inland Revenue FinancialIntermediaries and ClaimsOffice (FICO)St John’s HouseMerton RoadBootleMerseyside L69 9BB

☎ 0151 472 6036web site www.inlandrevenue.gov.uk

OFWAT4th Floor (South)High Holborn House52-54 High HolbornLondon WC1V 6RL


web site www.open.gov.uk/ofwat

Charities Tax Reform Group12 Little College StreetLondon SW1 3SH



☎ 020 7226 0189e-mail communitymatters@

communitymatters.org.uk

web site


USEFUL ADDRESSES

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RATES AND TAXES

FURTHER READING

Catalogue of VAT Publications– 999published by HM Customs andExcise

Catering and Take-Away Food– 709/2published by HM Customs andExcise

Charities (Update 1)701/1published by HM Customs andExcise

Charities and Fund-Raising –CC20published by The CharityCommission

Charities: Supply, Repair andMaintenance of Relevant Goods– Information Sheet 8published by HM Customs andExcise

Clubs and Associations – 701/5published by HM Customs andExcise


Filling in Your VAT Return –700/12 (W)published by HM Customs andExcise

Fuel and Power – 701/19published by HM Customs andExcise

The Ins and Outs of VAT –700/15 (W)published by HM Customs andExcise

A Practical Guide to VAT forCharities and VoluntaryOrganisationspublished by the Directory ofSocial Change

Rates – Information Sheet 15published by CommunityMatters

Should I Be Registered forVAT? – 700/1(W)published by HM Customs andExcise

Tolley’s Charities Manualpublished by Tolley Publishing

Trading by Charitiespublished by FICO

The VAT Guide (Updates 1,2and 3) – 900published by HM Customs andExcise

Land and Property (Updates 2and 3) – 742published by HM Customs andExcise

VAT guide for VoluntaryOrganisationspublished by the NationalCouncil for VoluntaryOrganisations

All the Inland Revenue andVAT leaflets above are free andmay be obtained from your localInspector of Taxes and VAToffice respectively. Some can bedownloaded from the web siteswww.inlandrevenue.gov.uk andwww.hmce.gov.uk

All Acts of Parliament referred toin the text can be purchased fromthe Stationery Office.


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109

Licences andother legalpermissions

777777777777777777777777777777

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INTRODUCTION

One community organisation, again nameless,ordered a Jackpot Games Machine: theythought it would provide an attraction formembers and also a significant boost for theirfunds. They did their administrativehomework properly and discovered theyneeded a licence from Customs and Excise.When they applied for this they discoveredthey required a Part III Gaming Certificatefrom the Licensing Justices first. So themachine could not start earning them revenuefor six weeks, which was the time it took toget the certificate and the licence.

Each year they renewed the licence withCustoms and Excise. After five years, by whichtime the machine had become an establishedfeature of the community centre and wasnetting an income of about £400 a week, thetime came for them to renew the licence andthey were told that their Part III Certificate hadexpired and, therefore, the licence could notbe renewed. Consequently they had to shutdown the machine for a further six weekswhile they renewed their five year Part IIICertificate. Net effect: they lost a total of£2,400 very much needed income.

A CAUTIONARY TALE

LICENCES & OTHER LEGAL PERMISSIONS

When doing the research for this book it was thischapter that gave the most headaches. There aremany sources of information and they all approachthe subject in different ways. This creates the im-pression that the subject of licences is very complex,with many pitfalls for the managers of a communitybuilding.

I am sure that any management committeewould confirm that, when you run communitybuildings with their great variety of activities, thereis one golden rule for managers: ‘Before starting anyactivity check whether there is a licence or otherlegal requirement.’

It is a simple rule and one that will help avoid theproblems that can arise from breach of licensing andother regulations.

Whilst an overview of licences and legalpermissions in this chapter may be frightening, thefact is that community organisations in general areproperly managing their affairs. It is easy, however,to overlook an obligation requiring your attentionand, for that matter, to overlook a benefit you mayhave (eg a waived fee) in respect of a licence.

As managers of public premises and public activi-ties your overriding duty is the public interest andsafety. The appropriate licences and legalpermissions are there to ensure you have undertaken

the necessary steps to do that.A community organisation will wish to pursue

public and private activities on its own or otherlocal premises. Management committees preparingfor such activities will have to work on the basis thatthere will inevitably be a series of laws regulatingthe premises and activities, and they will have toapply for the necessary authority to ensure thepremises and activities are adequately covered.

The organisation will need to ensure that leaseconditions and its governing instrument (see chap-ter 2) do not prohibit such activities. It will alsohave to satisfy itself that the activities are really inthe interest of the organisation and its objectivesand will not bring the organisation into disrepute.

A SIMPLIFIED APPROACHBecause this chapter deals with legal requirements itwould be possible to write in great detail about everyaspect of licensing. That is not the intention of thisbook. If you want more detail ACRE and Commu-nity Matters have published a comprehensive bookcalled Licensing and Other Statutory Requirements forVillage Halls and Community Centres. Other, moredetailed literature is referred to in the text andlisted, with many other sources, under FurtherReading at the end of the chapter.

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ALCOHOL

Supply of AlcoholMany organisations running community build-ings are operating under a Club Registration Cer-tificate (CRC). However, CRCs – issued underthe Licensing Act, 1964 – only apply to privatemembers’ clubs and are primarily for the supply ofalcohol between bona fide members of suchclubs.

Since a charity provides services to the public,holding a Club Registration Certificate is abreach of trust by the management committee ofthe charity – an offence against charity law re-quirements. It will be subject to a six year back-dated liability to corporation tax. A charity can-not argue that any surplus arising from supply ofalcohol to its members is not subject to corpora-tion tax on the grounds that it arises from mutualtrading. This is because it will be treated asthough it sold, rather than supplied, alcohol.

A swingeing tax liability and breach of charitytrust should be enough to convince all charitiesthat they should take this issue very seriously. Allmembers of the management committee could beheld individually and personally liable. It is nogood trying to argue that the bar is separately runby a ‘sub committee’ or a ‘section’. For a bar to beseparate it must be absolutely established as adistinct and separate organisation.

This is not, then, a matter to ignore or tinkerwith. You are well advised to contact CommunityTrading Services (CTS) Ltd, which specialises inadvising charities on this subject and providingcomplete bar separation packages. You shouldalso be aware that there is a considerable amountof poor advice offered on this subject, sometimesfrom professional advisors. Seek specialist adviceand at all costs avoid DIY.

In the short term there will be a price to pay asthere are the costs involved in separating a bar;but that price is far better than the penalties someorganisations have faced and still face as a resultof not doing things properly.

POSSIBLE LICENCES AND PERMISSIONS

Sale of AlcoholThe sale of alcohol is not a charitable activity inpursuit of a charitable object and, therefore, canonly be an activity that is ‘incidental’ or ‘occa-sional’. The argument that sales of alcohol createprofit to assist the charity in its charitable work willnot change the requirements of charity law, nor willit change the view of the Inland Revenue that prof-its from sales of alcohol are liable to corporation tax.

A charity may not operate a regular/permanentbar activity under a justices on-licence. If a charity isdirectly operating a regular/permanent bar and/orthe intention is to create profits for the benefit ofthe charity then the management committee is inbreach of charity trust and the profits from sales ofalcohol are liable to corporation tax (see above).

Charities operating a bar under a justices on-licence are strongly advised to seek specialist adviceon the subject. The whole subject of bars in charitiesis a minefield. Solicitors have often represented ap-plications for justices on-licences or Club Registra-tion Certificates for charities without consideringthe implications of charity law. Courts have oftengranted justices on-licences or Club RegistrationCertificates to charities without considering the im-plications of charity law. Accountants have oftenconsidered that the surplus or profit arising fromsales/supply of alcohol by a charity is not liable tocorporation tax. They are all wrong. But the buckstops with the management committee of the or-ganisation. Its members are the managing charitytrustees and they are responsible for managing theorganisation properly.

A charity can hive off a permanent/regular baractivity by establishing a distinct and separate or-ganisation. This bar separation package is part of theservice offered by Community Trading Services(CTS) Ltd. Charities with a bar on their premisesare urged to seek advice on their specific circum-stances.

Incidental and Occasional Sales of AlcoholCharities may make sales of alcohol directly only inan extremely controlled way. Sales of alcohol which

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are considered by the Charity Commission as ‘inci-dental’ or ‘occasional’ are those provided as merelysupportive to particular charitable events and ac-tivities managed by a charity (for example, sellingalcohol to participants and spectators at a sportingor theatrical event).

The usual methods for obtaining an authority toprovide such sales are:• an Occasional Permissions Licence: A charity or a

voluntary not-for-profit organisation may makeup to twelve applications for twelve events peryear to the Licensing Justices under the provi-sions of the Licensing (Occasional Permissions)Licensing Act, 1983 as amended by the Deregu-lation (Occasional Permissions) Order, 1997.Occasional permissions are valid for up to 24hours so, for example, to sell alcohol on the threesuccessive evenings of a festival would requirethree permissions.

• an Occasional Licence: A charity may ask a cur-rent licensee (eg a local publican) to apply for anOccasional Licence for the purposes of a functionon behalf of the charity. Sales of alcohol willthen be under the control and responsibility ofthat outside licensee for the event.

Some charities are operating incidental and occa-sional sales of alcohol under a justices on–licencethat they have been granted directly. It is rare for acharity to be authorised in charity law to operate ajustices on–licence directly and it will only be per-missible where a clear analysis of circumstances hasbeen made and the Charity Commission has agreed.In such circumstances a charity will have to showthat:• its total income from sales of alcohol has not

been greater than 10% of the total income of thecharity

• it is neither the circumstance nor intention tooperate a regular/permanent bar nor to view thebar activity as a charity fund-raising activity

• the operation of a bar is a support only for thosepeople attending a charitable activity.

For further information see the Charity Commis-sion’s leaflet CC27: Providing Alcohol on CharityPremises.

Other Restrictions on the Provision and Sale ofAlcoholIn addition to observing the requirements of charitylaw, managing charity trustees must pay attention toseveral other factors when considering the provisionof alcohol on charity premises or at events else-where. The following may also restrict the ability toprovide alcohol:• Lease Covenants: managing charity trustees

should check themselves and where appropriatewith their holding/custodian trustees whetherthere are any restrictive covenants regarding saleof alcohol or trading activities in leases, licencesor rental agreements.

• Restrictive Covenants: managing charity trustees,whether owning, leasing, licensing, renting orhiring premises and/or land, should check thatthe land or premises are neither subject to localbye-laws restricting sales/consumption of alcoholnor subject to absolute covenants. Some landand property may be subject to trusts that haverestrictive covenants on sale/supply of alcoholunder any circumstances.

• Public Image: A matter for serious consideration isthe public image of a charity providing alcohol.There is growing concern about increasing alco-hol abuse and alcoholism generally and alcoholconsumption by young people in particular.These are important matters for charities, as pub-lic organisations, to consider prior to providingalcohol facilities in their building. The issues ofsupervision, health and hygiene and fire precau-tions, should also be given proper attention.(More is said about all of these later in this chap-ter.)

ENTERTAINMENT LICENCESIn many cases, if you provide entertainment for thegeneral public, for example dance, music, theatre orfilms, you will need to obtain a licence from yourlocal authority. It has in the past been necessary toget a separate licence for each form of entertain-ment, but guidance was issued to local authorities in1995 to simplify the process in some cases.

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The guidance proposes that:• it should be possible to apply in a single applica-

tion for two or more licences• renewal notices should be issued for annual li-

cences• local authorities should provide a named contact

for enquiries• local authorities should impose only those condi-

tions and restrictions strictly necessary for publicsafety and the avoidance of nuisance

The guidance relates to applications from commu-nity premises catering for a maximum of 300 peoplebut may also be used in relation to larger premisesused infrequently (for example a school hall) orwhere a building is never used to its full capacity.Check with your local authority (district or boroughcouncil) whether your building falls into the lattercategory.

The licences are described below. For furtherdetails see the Home Office booklet Licensing YourCommunity Building.

At time of writing the White Paper Time forReform: Proposals for the Modernisation of our Licens-ing Laws was being discussed. This proposes radicalchanges to licensing relating to alcohol and publicentertainment. However, any proposals are unlikelyto become law for some time. The White Paper isavailable from the Stationery Office (address onpage 182).

Public Entertainment LicenceA public entertainment licence (PEL) is requiredfor all places that are used for public dancing and/ormusic. Therefore if you or hirers of your buildinghold dances or discos or put on music shows of anykind then you must obtain a PEL.

The licence is required in order to ensure thesafety of the public present at any entertainment inyour building and to prevent a public nuisance.Consequently your building will be subject to safetychecks, and conditions may be laid down before thegranting of a licence (see ‘Fire Precautions’ and‘Health and Safety’, later in the chapter). It is cru-cial that you make these conditions clear to allhirers of the premises and make it clear that they arerequired to satisfy them. This can best be achieved

by issuing a hiring contract and ensuring supervision(see chapter 2).

There are no fees payable for a public entertain-ment licence for a church hall, village or parish hallor for any similar community building. This is thesame across the country although in London it iscovered by a different regulation. Experience showsthat many local authorities are not aware of this feewaiving regulation and community organisationsshould therefore draw it to their attention.

Public entertainment licences are normallygranted for one year and you apply for these to thedistrict or borough council. Occasional licences maybe granted for one or more specific occasions. Appli-cants must usually give 28 days’ notice. If you are inthe process of constructing or altering your premisesyou would be well advised to consider applying for aProvisional Entertainment Licence. This is a goodtest of your plans and will avoid later problems.(This is also a good point to remember if you con-sider the need for a licence for a bar. An applicationfor a Provisional Licence for the sale of intoxicantswill be a further good test of your building plans andspecification.)

In the process of obtaining a public entertain-ment licence the council, police and fire authorityhave powers of inspection. Fines can be imposed foroffences against public entertainment licensing.

Theatre LicenceA theatre licence is required for stage performances,for example plays, ballets or opera. The applicationprocess is similar to that for a public entertainmentlicence but further conditions may be imposed.

No fee is payable if performances are of an educa-tional nature or for a charitable purpose; otherwise acharge may be made.

Under the Theatres Act, 1968 you can have a barselling alcohol during performances without an ad-ditional licence. You will need to notify the clerk tothe licensing justices and keep to your district’slicensing hours. For further information about sell-ing alcohol see page 111.

Unless your community association puts on regu-lar performances it may be more sensible to apply foran occasional rather than an annual theatre licence.

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However, if your building is eligible, and your localauthority is using the simplified licence process de-scribed above, you may want to include a theatrelicence in your annual application anyway.

Once again certain safety standards must be met(see ‘Fire Precautions’ and ‘Health and Safety’ onpages 117 and 119.)

If you are putting on a performance you will alsohave to consider the author’s and/or publisher’s roy-alties (see ‘Copyright and Royalty Permissions’, be-low).

Film and Video LicenceYou will need a licence if you show films or videos tothe public and are not covered by the exemptionslisted below. This licence is obtained from the localdistrict or borough council. It is for a period of up toone year and you will probably be charged a fee.Occasional permissions can be obtained for up to sixdays a year. Conditions will often be attached to thelicence and are normally to do with the suitability offilms or videos for children.

Experience shows a considerable lack of under-standing regarding the law on showing films andvideos. People have become used to hiring pre-re-corded video cassettes for home use and frequentlyhave assumed that they can hire these for use in, forexample, the community centre. This is not thecase. The possession of a television licence is not anauthority for use of a television to make programmesor videos available to the public. Furthermore, pre-recorded video cassettes are mostly only available tobe used for domestic purposes. ‘Domestic’ does notextend even to a private members’ club whether ornot there is a charge for admission. It certainly doesnot allow for public performance, even if for charita-ble purposes.

The whole subject of providing films and videosin public premises (and, for that matter, in a privateclub) is one that will need considerable care andattention to the issues of licence, copyright andother special conditions. There are outstanding or-ganisations who have pioneered their way throughthis complicated area. They may be able to help youavoid the pitfalls; but be careful as there are manyorganisations who are not good examples and their

advice could make matters worse.

ExemptionsYou do not need a licence• if there is no charge or private gain• if the show is a private one and there is no private

gain• if the premises are used for no more than six film

and video shows a year. In this case, however,you must give seven days’ notice in writing to thedistrict or borough council, the fire authority andthe police authority

• if you have an exemption certificate from theHome Office. To get this certificate you have toprove that you are a non-profit-making organisa-tion, and films/videos are shown for not morethan three days in any seven-day period

• if you form a film or video society that is nonprofit-making and allows only its members toattend performances, and the takings are usedonly for the expenses involved in the showing ofthe films/videos.

You will need a licence for premises used for achildren’s cinema or video club unless the films orvideos are shown as part of the activities of aneducational or religious institution.

InspectionsThe local authority will base its decisions aboutrequired safety standards and conditions for a li-cence on the recommendations of the fire authorityand, if necessary, the police. It is important to en-sure that an informed committee member is presentwhen inspections are made, and to establishwhether work recommended on the building ismandatory or advisory.

COPYRIGHT AND ROYALTYPERMISSIONSYou need special permission to use any copyrightmaterial in the entertainment you put on in yourcentre. Literary, dramatic, musical and artisticworks are protected by the copyright laws from be-ing reproduced, adapted, publicly performed or pub-lished without permission. Any performances incommunity buildings are considered to be public,

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therefore it is certain that you will need this permis-sion and will be liable to pay royalties.

It gets a bit complicated here. You could needseveral permissions – to protect the rights of theauthor, the performer, the composer, the publisher,or the recorder of the copyright material. This mate-rial can be a play, a song, a tune or an opera and itcan be either live or recorded.

If, as is sometimes tempting, you resent all thecomplications of obtaining the various permissions,remember that this is how composers, authors, pub-lishers and others make their living.

To get the permissions you need you will have toapply to one or more of the following:• the author of a play• the Performing Right Society (PRS) – for musi-

cal performances, whether live or recorded, onbehalf of the composer or publisher (the PRSlicence covers the building, as opposed to thePPL, which covers the performance – see above)

• Phonographic Performance Ltd (PPL) – for per-formances of sound recordings, on behalf of therecording company (but see below)

• Mechanical Copyright Protection Society – formaking musical recordings, for example as part ofa video or film

• Video Performance Ltd, or the owner of thecopyright in music or film videos

The addresses of all these are given at the end of thechapter on pages 131-132.

As you can imagine the detail of these variouslicences is complex. If your centre or hirers of yourcentre give performances of any kind of music, be itlive or recorded, if you put on plays, if you showvideos or films you will need to comply.

Community Matters’ Help with a PPL LicenceClearly most community buildings will, if nothingelse, use recorded music. For this you will needpermits from the Performing Right Society (PRS)and the Phonographic Performance Ltd (PPL).There is some good news here. Charities running acommunity building can now obtain a PPL permis-sion through Community Matters. The agency thatCommunity Matters holds on behalf of PPL willreduce the costs and administration. Depending on

the particular circumstances of your centre the fi-nancial saving could range from ten to hundreds ofpounds.

If your organisation is a charity, regardless ofwhether you are registered, the PPL licence require-ment may be waived if, for example, you hold anevent with an admission charge at which recordedmusic is played and all the proceeds, without anydeductions, are put to the purposes of the charity. Itcan be quite complex to determine whether you areentitled to the concession. If there is any doubt inyour mind, seek advice from Community Matters.

GAMING AND LOTTERY LICENCESIf you run any kind of raffle or lottery, organisebingo, have fruit machines or other gaming or enter-tainment machines including a snooker table, thenyou may have to obtain a licence. The basic detailsare given below. If there is any doubt whatsoever,contact the licensing department of your local au-thority for guidance.

BingoCommunity Matters’ Information Sheet 26 – Bingoexplains several ways that it is perfectly proper torun bingo in your community building without theneed for a licence or to register with your localauthority or incur liability to pay duty. Basically, ifyou wish to run bingo to raise funds for your buildingit is alright to do so as long as you observe certainconditions. Section 41 of the Gaming Act, 1968 isthe governing legislation.

The admission fee and stake (cost of tickets)must not exceed £3 per person per session and thetotal value of all prizes, whether cash or kind mustnot be more than £300. All profits, after the deduc-tion of reasonable expenses, must be devoted topurposes other than private gain. (See CommunityMatters’ information sheet no 26.)

Gaming and Amusement MachinesIf you have a bar you possibly also have a jackpotfruit machine or other gaming machine. You mayalso have one if you do not have a bar. In either case,in order to operate a gaming machine, you need toregister the premises and obtain a machine duty

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licence from Customs and Excise.The firm that sells or leases you the machine is

under a duty to ensure that your premises are au-thorised for gaming and that you have the licence,before releasing a machine.

Many people assume that the licence for themachine is all that is required or that a Club Regis-tration Certificate or a justices on-licence permitsgames machines as well as the provision of alcohol.This is not so. You must apply to the local licensingjustices for a Certificate of Registration under partIII of the Gaming Act, 1968. This certificate willlast for a five year period and must be kept posted ina conspicuous place along with any other appropri-ate licences, (justices on-licence and your machineduty licence). Club Registration Certificates may beissued for between one and ten years; justices on-licences normally for three years and machine dutylicences for one year. The management committeeis responsible for ensuring that these authorities arein place and maintained.

‘Gaming’, whether carried out on a machine orotherwise, means the playing of a game of chance,for winnings in money or money’s worth. This ap-plies whether or not the person playing the game isat risk of losing any money or money’s worth.

The Gaming Act, 1968 states that a ‘game ofchance’ does not include any ‘athletic game of sport’nor any game of pure skill. A ‘game of chance’ isfurther defined to include any game which com-bines skill and chance. There are some fine distinc-tions that arise from these definitions, many ofwhich are not of concern to managers of communitybuildings.

The most common potential gaming activitiesaffecting community buildings are snooker, darts,cards and bingo. Snooker and darts are regarded asgames of pure skill and so a Gaming Act registrationis not required. If, however, you have a table for thepublic playing of billiards, snooker or pool, and thepremises are not licensed for the supply/sale of alco-hol, a Billiard Licence will be required. Games in-volving cards, played for winnings, are considered tobe gaming regardless of whether the skill of players isinvolved in the outcome. Small scale gaming, in-cluding bingo and whist, may be carried on without

the need to register or obtain a licence but variousconditions must be adhered to (see ‘Bingo’). Gam-ing does not occur unless something of value –‘money or money’s worth’ – is staked on the out-come or received later as a result of trading in ofsome form of tokens (eg matchsticks).

Raffles and LotteriesAs far as committees of community buildings areconcerned, the law, in the shape of The Lotteriesand Amusements Act, 1976, as amended by theNational Lottery etc Act, 1993, provides regula-tions for three categories of lottery: ‘small’, ‘private’and ‘society’.

Small Lotteries ‘Small’ lotteries are raffles and draws held as part ofanother event, for example at a dance or fête. Aslong as certain conditions are fulfilled you do nothave to register.

The proceeds must not be for private gain andtickets can only be sold on the premises during theevent that includes the raffle. The draw must bemade and announced during the event. There mustbe no cash prizes and not more than £250 may bespent on the prizes, although there is no limit on thevalue of donated prizes.

Private LotteriesA ‘private’ lottery is restricted to members only.Tickets must be printed with the price as well as thename and address of the promoter. They must alsostate that they can only be sold to members. Suchlotteries cannot be advertised publicly nor may tick-ets be sent through the post.

Society Lotteries‘Society’ lottery is the name given to a prize draw ofa larger and more public nature that is still not acommercial lottery – for example a charity Christ-mas draw.

To run a lottery of this type you must registerwith the local authority and, if you plan to selltickets to the value of more than £20,000, or thetotal value of tickets sold or put on sale in onecalendar year exceeds £250,000, you also have to

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register with the Gaming Board.These lotteries can be run in support of a charita-

ble, sporting or cultural institution. All of the pro-ceeds, after deduction of reasonable expenses (notmore than 35% of the proceeds), must be devoted tothe purposes of the promoting association.

As with private lotteries the tickets must containspecific information. As the printing of tickets is aspecialist job the Lotteries Council (address on page131) holds a list of printers. No tickets in this kindof lottery may be sold to or by anyone under 16 yearsof age.

The promoter has to make a return to the localauthority of all society lotteries, not more than threemonths after the date of the lottery.

KEEPING A CHECKLIST OF LICENCERENEWAL DATESKeeping track of all these possible licences andpermissions can be eased considerably if you spend abit of time drawing up a list of all the licences youneed and their renewal dates. Whoever is appointedto look over these things can refer to the list at thebeginning of each month and make any re-applica-tions as they become due. As each one comes upcheck that it is still necessary. Of course, if you havebeen able to apply for a single annual licence, thelocal authority should inform you of the renewaldate.

OTHER STATUTORY PERMISSIONS

There are a number of other legal requirements thatyour building must satisfy. Some are made as condi-tions for obtaining some of the licences and othersare required in their own right. Some are both.Satisfying many of the regulations that are describedbelow is simply good practice for any communitybuilding as they are all laid down to protect theenvironment and the safety of the public, your staffand members. So it’s well worth checking your ownpractices against the list on page 130 to see whetheryour building and management procedures are up toscratch even if you do not legally need all the li-cences referred to.

HEALTH AND SAFETY MEASURESManagement committees of community organisa-tions that manage a community building have acommon law duty to avoid carelessly or recklesslycausing personal injury to people or damage to prop-erty. This applies to all people who use the building– not just employees and volunteers – and evenapplies (although to a lesser degree) to trespassers.

There are several ways in which you may becomeaware of the requirements concerning the healthand safety of your staff, volunteers and users. If youapply for a public entertainment licence you will beinformed of conditions relating to fire safety, venti-

lation and sound insulation. Details can be obtainedfrom the local environmental health department,the fire authority, the licensing magistrate’s clerkand the Health and Safety Executive (address onpage 131).

Other health and safety requirements affectingmost community buildings arise from two pieces oflegislation: the Health and Safety at Work Act,1994 (HSW Act) and the Control of SubstancesHazardous to Health Regulations, 1999 (COSHH).

HEALTH AND SAFETY AT WORK ACT,1994 (HSW ACT)The HSW Act will apply to your community build-ing even if you have no paid staff, because it alsocovers others using an organisation’s building andequipment, including members of the public, volun-teers and committee members.

Regulations under the HSW Act cover sevenareas:• the management of health and safety• health, safety and welfare in the workplace• display screens (for example computer screens)• personal protective equipment• provision and use of work equipment• manual handling (for example lifting)• fire precautions

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Use of computers is covered in chapter 9; briefdetails of the other regulations are given below. Forfurther information see Essentials of Health and Safetyat Work, published by the Health and Safety Execu-tive and Community Matters’ Information Sheet no12 – Health and Safety in Community Buildings.

MANAGEMENT OF HEALTH ANDSAFETY AT WORK REGULATIONS, 1999• Every employer must carry out a risk assessment

exercise, which should be regularly reviewed andrevised as necessary.

• There must be arrangements for effective plan-ning, control, monitoring and review of pre-ventative and protective measures, and if thereare five or more employees, the arrangementsmust be in writing.

• There must be appropriate procedures to followin an emergency – remember to ensure adequatemeans of escape for disabled as well as able-bod-ied people.

• Staff must have information about all the above– again, remember the needs of people with dis-abilities, people with learning difficulties, andthose whose first language is not English.

• Before employing anyone aged under 18 an em-ployer must carry out a risk assessment of thework hazards specific to that individual.

Workplace (Health, Safety and Welfare)Regulations, 1992• Premises and equipment must be kept in a good

state of repair.• Ventilation must be effective and suitable (this

could simply mean having windows that open).• A reasonable temperature must be maintained

(in most cases this means a minimum tempera-ture of 16°C; there is no maximum – althoughthe World Health Organisation recommends24°C) and there must be a thermometer on thepremises.

• Lighting must be suitable and sufficient — withnatural lighting wherever possible.

• Premises must be kept clean and rubbish mustnot be allowed to accumulate (apart from inbins).

• Staff must be able to get to and from their desksand move around their workrooms easily andsafely.

• Any workstation (eg desk, chair, computer) mustbe suitable for both the user and the work.

• Floors must be suitable and safe; staircases musthave handrails and guards (except if they wouldcause an obstruction).

• Measures must be taken to prevent anyone beinginjured by a falling object and any hazardousareas must be clearly indicated.

• It must be possible to open and close safely andeasily clean windows, skylights and ventilators.

• Pedestrians should not be in danger from vehi-cles.

• It must be possible to ensure that sliding doorscannot be derailed; upward opening doors musthave devices to prevent them falling back; pow-ered doors must have features preventing themfrom trapping anyone and enabling them to beoverridden should the power fail; it must be pos-sible to see through doors that open both ways.

• There must be suitable, adequately ventilatedand lit WCs (at least one women-only for every25 women and one men-only for every 25 men).

• Accessible drinking water and cups must be pro-vided and clearly signed.

• Secure storage must be provided if staff have tochange for work.

• Suitable and sufficient washing facilities must beprovided if they are required by the nature of thework or for health reasons.

• Suitable rest facilities should be provided, withsuitable arrangements to protect non-smokersfrom the dangers of tobacco smoke. The Healthand Safety Executive recommends that all em-ployers should have a written policy on smokingin the workplace, which should give priority tothe needs of non-smokers.

Personal Protective EquipmentWhere appropriate, personal equipment and cloth-ing must be provided to protect staff against theweather and health and safety risks and employersmust take reasonable steps to ensure the equipmentis used.

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Work EquipmentWork equipment must be suitable for the purposefor which it is used and kept in good repair. A fullmaintenance record must be kept and full trainingmust be given to users and their managers.

Manual HandlingEmployers should, wherever possible, avoid theneed for staff to undertake manual handling whichinvolves a risk of injury.

First AidAll workplaces are legally required to have first aidprovision; the exact form depends on a number offactors. Although legally you need have a trainedfirst aider only if you employ 50 or more staff, it isadvisable to have at least one (and preferably two)people with first aid training in the building.

First aid boxes must only contain items that afirst aider is trained to use, and should not containany medication (for example aspirin or paraceta-mol). Remember to ensure that all users knowwhere the first aid box is kept and, if there aretrained first aiders, who they are and how to contactthem. Ensure someone has responsibility for keepingthe first aid box stocked (keep a list on the boxdetailing what it should contain).

For further information see the Health andSafety Executive’s publications First Aid at Workand Basic Advice About First Aid at Work.

Hazardous SubstancesThe Control of Substances Hazardous to HealthRegulations, 1999 (COSHH) impose a duty on em-ployers to assess whether there are any hazardoussubstances or risks present in the workplace and, ifthere are, to deal with them safely. Whether or notyou are technically an employer, it is sensible to actas if you are. The initial check that the COSHHregulations require to be carried out is as follows:• what substances are present and in what form?• what harmful effects are possible?• where and how are the substances actually used?• what harmful substances are given off (if any)?• who could be affected, to what extent and for

how long?

• under what circumstances?• how likely is it that exposure will happen?• what precautions need to be taken in order to

comply with the rest of COSHH regulations?You must ensure that no one is exposed to anyhazardous substances that are present on yourpremises or, where this is not possible, that theexposure is controlled. Practical guidance on theregulations and how to carry out the initial assess-ment is available from your local Health and SafetyExecutive. An approved Code of Practice is avail-able from the Stationery Office. (See further read-ing at the end of the chapter.)

FIRE PRECAUTIONSAll public and community buildings have to meetspecific standards so that the risk of fire is minimisedand if a there is a fire there is adequate time for allthe occupants to get out of the building safely.

Your building will require a fire certificate fromthe local fire authority. Before the certificate isgranted a detailed list of requirements will be given toyou by the issuing authority following an inspectionof the building. The requirements will cover buildingimprovements to do with protecting the means ofescape, the display of appropriate notices, the imple-mentation of sensible building management practicesin order to avoid fires, what to do in the event of a fireand installing suitable fire fighting equipment.

You will probably have been informed of the fireprecautions requirement when building or convert-ing the premises for community use and will there-fore have a fire certificate. If not contact your localfire authority at once: the safety of everyone usingyour building is at stake.

Under the Fire Precautions (Workplace) Regula-tions, 1997 all employers must carry out a risk assess-ment relating to fire safety. For further guidance seeFire Safety: An Employer’s Guide, published by HSEBooks (address on page 181).

Another occasion you will come across the fireregulations is through an application for a publicentertainment licence, the granting of which is con-ditional upon the building having proper fire pre-cautions. In this connection the Home Office haspublished a helpful book: Guide to Fire Precautions in

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checking the building after each event to ensurethat fire is prevented whilst the building is empty.This could be incorporated in a fire notice posted atexits and other suitable places. The following simpleexample may be of help:

Fire PracticesIt is essential to have regular fire practices so thatusers of your building – whether staff, volunteers,committee members or regular hirers – are used togetting out in a regulated, efficient fashion withoutpanicking. Fire fighting equipment and alarms arecovered in chapter 9.

Further InformationI have highlighted some of the most importantmeasures of the health and safety legislation. Thereis much more detail, however, and you are stronglyurged to get hold of other guidelines and undertakea thorough check of the practices of your centre inthis sphere. Two which are particularly useful areCommunity Matters’ Information Sheet 12 – Healthand Safety in Community Centres and Writing a SafetyPolicy Statement: Advice to Employers, published bythe Health and Safety Executive.

If you are in any doubt about the health andsafety requirements affecting your particular build-ing, contact the environmental health departmentof your local authority or the local Health andSafety Executive.

FOOD HYGIENE REGULATIONSThe Food Safety Act, 1990, Food Safety (GeneralFood Hygiene) Regulations, 1995 and Food Safety(Temperature Control) Regulations, 1995 aim tomake sure that all food and drink offered to thepublic is safe to eat and properly described. Theregulations apply to all premises where food and/ordrink is stored, sold or supplied, whether for profit ornot. They therefore apply to all types of food busi-ness, from hot dog vans to five star restaurants,including cafés in community buildings, and alsocover events where food is supplied on a temporarybasis, for example stalls at a fête. A food hygieneinspection will probably also be required before apublic entertainment licence is granted.

IN CASE OF FIRE1 In the event of fire, the person in charge of

the hall or function will instruct all peopleto leave the building, using the nearestavailable exits

2 Call the Fire Brigade. The nearestavailable telephone is

Dial 999, ask for the Fire Brigade and givethis address:

Phone number

3 Do not re-enter the building to collectpersonal possessions or for any other reason

4 On arrival of the Fire Brigade the person incharge of the building or function shouldreport to the Officer in Charge informinghim/her that all the users are safe or if notgiving their last known position

5 Only attempt to extinguish the fire usingthe appliances provided, if it is consideredsafe so to do

END OF EVENTCHECKLIST

1 Search for smouldering fires or cigarettesleft burning and clear waste paper

2 Check that heaters and cookers areturned off

3 Check that all electrical appliances areturned off and unplugged

4 Turn out all lights not required forsecurity purposes

5 Close all internal doors6 Secure all outside doors and windows

Existing Places of Public Entertainment and LikePremises (available from the Stationery Office –address on page 182). Note that this was publishedbefore the 1997 Regulations came into effect. Alsosee Community Matters’ Information Sheet 38 –Fire safety regulations and checklists for communitycentres.

It is important that you have a procedure for

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• Are the premises adequately lit, heated andventilated?

• Is there a thermometer on the premises?• Are there means of escape in case of fire

that are adequate for both disabled and able-bodied people?

• Is there an appropriate fire alarm system,and have you considered the needs ofdisabled people with learning difficulties?(see chapter 9)

• Is the fire fighting equipment sufficient andmaintained? (see chapter 9)

• Is there access for a fire engine?• Is the building clean and tidy?• Is there an appropriately stocked first aid

box — and clear notices about itswhereabouts?

• Is someone responsible for ensuring the firstaid box is fully stocked?

• Does anyone have up to date first aidknowledge?

• Are any dangerous or inflammable chemicalsstored in a safe manner (includingphotocopier toner)?

• Are you especially careful about all electricalinstallations and appliances? (see chapter 9)

• Are your premises overcrowded at any time?• Is the heating system regularly maintained?• Do staircases have handrails?• Do you inform staff of their rights under

health and safety legislation?• If you have five or more paid employees do

you have a written health and safety policystatement?

• Are all necessary posters and noticesdisplayed – in languages other than Englishwhen appropriate?

• Do you have an accident book, and are allaccidents recorded in it?

HEALTH AND SAFETY CHECKLIST

The Food Safety Regulations aim to set out basichygiene principles and focus on identifying and con-trolling food safety risks at each stage in the processof preparing and selling food.

Broad rules are given below; for further detailssee the Department of Health’s booklets: A Guide tothe General Temperature Control Regulations, AGuide to the General Food Hygiene Regulations, 1995and A Guide to Food Hazards and Your Business andCommunity Matters’ Information Sheet 11 – FoodSafety and Food Hygiene.

Two basic rules always apply, whether you areselling food on a permanent or temporary basis:• there should be adequate facilities to prepare and

serve food safely• food handling procedures should avoid exposing

food to risk of any contamination.Anyone responsible for a food business must:

• make sure food and drink is prepared, stored,packaged, transported, handled, supplied or soldin a hygienic way

• identify food safety hazards• know which steps in food preparation activities

are critical for food safety• ensure safety controls are in place, maintained

and reviewedThere is no formal system for safety controls andthey need not be complex. For example, they couldsimply mean buying from reputable suppliers; sepa-rating different types of food to prevent cross-con-tamination (for example uncooked poultry andready-to-eat foods); using food within date marks;storing food in a fridge (where appropriate); ensur-ing food is cooked adequately; wrapping food appro-priately; and having effective cleaning routines.

Food premises should:• be clean and maintained• be designed and constructed to allow good hy-

giene practices• have an adequate supply of drinking water• have suitable controls in place to protect against

pests

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FOOD HYGIENE CHECKLIST

• The premises, including all work surfaces,must be kept clean

• Tools and equipment must be cleaned (anddisinfected if appropriate)

• Food must be washed properly• Reasonable, practical steps must be taken to

avoid the risk of contamination of food oringredients

• Rubbish must be disposed of regularly, toavoid the risk of pests and contamination

• Where appropriate, ice must be made fromdrinking water

• Everyone in a food handling area must:

– observe good personal hygiene– wear clean and, where appropriate,

protective clothes– routinely wash their hands when

handling food– apply waterproof dressings to open cuts

and abrasions– not spit– never smoke in food handling areas– immediately report any illness such as

infected wounds, skin infections,diarrhoea or vomiting to whoever is incharge

• have adequate lighting (natural and/or artificial)• have sufficient ventilation (natural and/or me-

chanical)• provide clean, adequately ventilated lavatories

which do not lead directly into food rooms• have adequate hand washing and drying facilities• where appropriate, have separate food washing

facilities• be provided with adequate drainageRooms where food is prepared should have:• easily cleaned surfaces (including windows and

doors)• adequate facilities for washing food and equip-

ment• adequate facilities for the hygienic storage and

disposal of hazardous and/or inedible substancesand food waste

Food handlers must receive adequate supervision,instruction and/or training in food hygiene. Thedetails will depend on the nature of the business. Anote ‘Food Handlers Please Observe the FollowingPrecautions’ should be displayed in the kitchen.

Under the temperature regulations most hot foodwhich requires a temperature control must be heldeither at or above 63°C and chilled food must beheld at or below 8°C. There are exemptions andsome flexibility: for further details see A Guide to

General Temperature Control Regulations. Thereshould be adequate facilities and/or arrangementsfor maintaining and monitoring suitable food tem-perature conditions.

The environmental health service of your localcouncil will be able to provide further help andadvice; some also run training courses.

Remember that hirers of your community build-ing must also satisfy the hygiene regulations (al-though, of course the building’s management com-mittee is ultimately responsible). Make sure youinform them of this and give them copies of anyguidance produced. It is useful to have a leafletlisting the basic requirements; see the checklist be-low.

Under the Food Premises (Registration) Regula-tions, 1991 (as amended), food businesses must beregistered with the local authority. This is a straight-forward process, there is no charge, and registrationcannot be refused. Check with your council’s envi-ronmental health service whether you need to regis-ter.

Kitchens in centres registered as food premiseshave to meet higher standards. These may includehaving tiles or stainless steel on walls, power venti-lation and increased provision of sinks.

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TRADING

GeneralA charity may not directly undertake ‘non-charitytrading activities’ other than as ‘incidental’ or on an‘occasional’ (very limited) basis. A charity may di-rectly undertake ‘charity trading activities’. An ex-ample of bona fide charity trading would include thesale of donated goods, and converting gifts of arte-facts into money. Thus jumble sales and charityshops operating solely on this principle are bona fidecharity trading. Such charity trading does not incura liability to corporation tax, does not offend againstcharity law, is treated by Customs and Excise asbusiness zero-rated and is accessible to mandatoryand discretionary rate relief. Under the FinanceAct, 2000 charities are also exempt from payingincome tax on small-scale non-primary purposetrading provided that the total turnover from alltrading and other incidental fundraising activitiesdoes not exceed an annual turnover limit and theprofits are used for the purposes of the charity. Fur-ther details are given in chapter 6. See also theInland Revenue booklet Trading by Charities, andCharities, Trading and the Law, published by theDirectory of Social Change.

Charities can also sell goods or services providedby the charity’s beneficiaries. This could includegoods made in sheltered workshop by people withdisabilities or a café run by students with learningdifficulties.

The distinction between charitable and non-charitable trading is complex. The issue of tradingwill continue to be a prominent subject for charitiesas more and more of them are directed towards suchactivities to extend their services, involve them-selves in competitive tendering for local authoritycontracts and seek new means of financing theircharitable activities from income from trading. If acharity is considering regular trading as an income-generating activity, it will need to set up a tradingsubsidiary. Community Trading Services Ltd, Com-munity Matters’ trading subsidiary, can help withthis (see ‘Setting Up a Trading Subsidiary’, below).

Trading StandardsA jumble sale is one of the most typical activities of

a charity and voluntary not-for-profit organisation.However, even at this simplest level remember thegolden rule: always check whether a licence or otherlegal consideration is required before you can under-take any new activity.

Sales of goods (donated or otherwise) at a jumblesale or car boot sale are subject to Consumer Protec-tion Legislation. Community Matters has for yearsstrongly advised organisations totally to avoid thesale (or even gift) of second-hand electrical and gasappliances. There are strong pressures to do other-wise because of the widespread activity by manyother voluntary organisations. It still remains best toavoid the million to one chance of injuring, maim-ing or killing someone with a faulty gas or electricalappliance. It does happen. Seek the advice and sup-port of local trading standards authorities. All toysmust bear an EU mark unless it can be proved theywere manufactured before 1990. To be absolutelysafe it may be advisable only to accept toys with anEU mark.

Car Boot SalesOne form of trading by charitable and communityorganisations that has mushroomed over the pastfew years is the car boot sale. At its simplest this iswhere you let anyone sell their goods on yourpremises (more likely in the car park) from the bootof their car. Each stall-holder is charged to be al-lowed to participate. Thus the stall-holders makemoney and you make money. It is this fact, that notall the proceeds of the sale go to the purposes of thecommunity organisation, that means that youshould give notice of car boot sales to your localauthority.

The precise requirements vary considerably fromone area to another and also change from time totime. It is, therefore, important that you find out theexact requirements in your area well in advance ofrunning a car boot sale. It is also advisable to let thepolice know as the sale may cause some traffic con-gestion.

You will also need to check your lease to see ifthere are any conditions which may affect trading.

Once again it is important to seek advice fromthe local Trading Standards authority as you could

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get caught up, however innocently, in any nefariouspractices which may be carried out by market stallholders who take pitches at your sale. Stolen goodsmay be on sale and dangerous goods may be beingoffered without you knowing it: goods that couldharm children. If you are trading yourselves youwould be well advised not to offer for sale: second-hand electrical goods, gas cookers or foam-filledfurniture. Note that certain local authorities keep aregister of second-hand traders.

Regular TradingIf you want to trade with the public in a moreregular way perhaps through a charity shop, commu-nity shop or one day sale then there are other factorsthat you have to consider. Running a regular bar inyour community centre also needs specific consid-eration (see page 111).

Setting Up a Trading SubsidiaryProbably one of the most important questions aboutregular trading of any kind is who formally carries itout. To repeat, if you are a charity (whether formallyregistered or not) you cannot engage in trading ofany kind other than in strict pursuit of your charita-ble purposes – selling your own produce.

Thus, if your organisation wants to run a commu-nity shop, a charity shop (unless it sells only donatedgoods), or a bar, you have to set up a subsidiaryorganisation to do it. See chapter 2 for the kind oforganisation that is appropriate. The way the char-ity benefits from the profits generated by the tradingsubsidiary is via a donation from the trading organi-sation to the charity, paid within nine months of theend of the subsidiary’s accounting period. The sub-sidiary company makes the payment gross of tax andgets tax relief through covenants or Gift Aid. Forfurther information see chapter 6. CommunityTrading Services Ltd provides a full package serviceon establishing trading subsidiaries (address on page131).

It is important that in all trading, whether byyour own organisation or by one that hires yourcentre you abide by any code of practice operated bythe local Trading Standards authority. Indeed com-pliance with such a code of practice should be a

formal condition of letting your building for tradingpurposes. If there is no local code of practice, use theone supplied by the Office of Fair Trading (addresson page 131).

STREET COLLECTIONSIf you plan to carry out a street or house to housecollection (which can be an effective way of raisingfunds) you must obtain a licence from the localdistrict council (or the Metropolitan Police in Lon-don). If you are unsure whether you need a licencealways check before proceeding. Regulations vary:your licensing authority will give you details.

Part III of the Charities Act, 1992 was due toreplace the old legislation with new, integrated con-trols dealing with all public charitable collections.At time of writing no date had been set for theimplementation, and it seems unlikely that any suchnew rules will be in force before 2003.

PLANNING PERMISSIONIf you want to change the use or appearance of yourbuilding or land you might well need planning per-mission before you are allowed to do it. If you do notown the building you would need to get the permis-sion of the landlord before considering any changesthat require planning permission.

The relevant legislation is the Town and Coun-try Planning Act, 1971 as amended and updated. Itis the planning department of the local authoritythat enforces and administers the planning lawslocally; the section you will need is often calledDevelopment Control.

Basically there are four areas that require plan-ning permission:• certain changes of use of either buildings or land• significant changes in the appearance of the out-

side of buildings• changes to the internal appearance of certain

listed buildings• putting up new buildingsThere are certain exceptions where planning permis-sion is not required. These are for minor changes andsome temporary changes of use. It is always best tocheck with the planning department before embark-ing on any change of use or change in the appearance

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of your building. Even putting up a sign may requireplanning permission, dependent on its size andwhether it is illuminated. If yours is a listed buildingthere may be more permissions that are required.

Ordinary repairs and painting do not requireplanning permission.

If you are thinking of setting up a specialist serv-ice, for example a workshop, this too may requireplanning permission for change of use. A playgroup,however, will probably not require change of use inan existing community centre or village hall as theexisting permission will be a general one includingsuch activity. If in doubt, ask the planning depart-ment of your local authority. Remember also that ifplanning permission is required for a particular ac-tivity, it will be required by the organisation orgroup running the activity, whether that is you or atenant group or organisation renting the premisesfrom you. It is as well to remind tenant projects.

Although playgroups will not require planningpermission in existing community centres they willhave to be registered with the local authority underthe Children Act, 1989. (See ‘Protection of Chil-dren’ on page 127.)

Applying and AppealingPlanning permission must be applied for on formssupplied by the planning department of the localauthority. In addition you will need to submit a planlocating the building on the map as well as drawingsof any proposed alterations.

With new building the application is carried outin two phases. First, application is made for outlineplanning permission. Here you ask for permissionfor the general use of the land with a general de-scription of the type of building you propose toerect. If this is granted you then apply for detailedplanning permission which, as the name suggests,requires far more detailed plans and drawings of theproposed building. Plans and drawings are not nor-mally required for permission for change of use.

When permission has been granted, remember torenew planning consent if the start of any works isdelayed beyond the period set.

If planning permission is turned down or grantedwith certain restrictions you have a right of appeal.

Remember that the appeal process can take a longtime. It may be sensible to negotiate the lease orpurchase of your building or land subject to thegranting of planning permission.

There is always a fee for submitting a planningapplication. As the fee can be quite substantial it iswise to check out in advance what this is likely to bein your case, by asking the planning department ofthe local authority.

BUILDING REGULATIONSIf you are planning a new building or extending orstructurally changing an existing one, the work willbe subject to building regulations, which are con-trolled by the District Surveyor.

A number of matters are regulated, such as stand-ards of materials used, structural stability, means ofescape, access for people with disabilities and manymore.

Usually you will not have to be directly con-cerned with supervising these things as your archi-tect and builder will take care of them for you. In thenormal course of events it is very unwise to under-take building works of any nature without the serv-ices of a qualified architect and builder.

The Construction (Design and Management)Regulations, 1994 (CDM)The CDM Regulations relate to health and safety inconstruction projects. They apply to:• any design work• any work which includes demolitionand to work:• which lasts for more than 30 days, or• involves more than 500 person days, or• involves five or more people on site at any one

timeThe CDM Regulations place a duty on everyoneinvolved in a construction project – clients, plan-ning supervisors, designers and contractors – toplan, coordinate and manage health and safety dur-ing all stages of the project.

Brief details of responsibilities are given below;for further information see Construction (Design andManagement) Regulations, 1994: The Role of the Cli-ent and A Guide to Managing Health and Safety in

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Construction, published by the Health and SafetyExecutive.

The client (eg the community association) must(as far as is ‘reasonably practicable’):• be satisfied that only competent people are ap-

pointed as designers, contractors, planning su-pervisor and principal contractor

• ensure that sufficient resources, including time,have been or will be allocated to enable theproject to be carried out safely

The designer should ensure that structures are de-signed to avoid or (when not possible) minimiserisks to health and safety while they are being builtand maintained. Where risks cannot be avoidedadequate information must be provided. Design ap-plies to preparation of specifications as well as draw-ings.

The planning supervisor has overall responsibilityfor coordinating health and safety aspects of thedesign and planning phase and for the early stages ofa health and safety plan (which provides the healthand safety focus for the construction phase of aproject) and health and safety file (a record of infor-mation for the client/end user, detailing the risksthat have to be managed during maintenance, re-pair or renovation).

The principal contractor should take account ofhealth and safety issues when preparing and present-ing tenders and has to develop the health and safetyplan and ensure the activities of all contractors com-ply with health and safety legislation.

Contractors and the self-employed should cooper-ate with the principal contractor and provide rel-evant information on the health and safety riskscreated by their work and how they will be control-led.

MINIBUSESThere are regulations covering the use of buses forhire or reward. These cover all buses except thosethat are exempt for various reasons under Section 9of the Transport Act, 1985. The exceptions have todo with payment and with size and some exceptionsrequire a permit. Permits are only required where

payment is made for the transport service. Paymentis one thing, however, and profit is another. Run-ning a service for profit is not permitted under theseregulations. Permits will be granted to bodies con-cerned with education, religion, social welfare, rec-reation or other activities for the benefit of thecommunity.

In summary the situation is as follows:• if there is no payment for the use of the bus then

no permit is required• if the bus is adapted to carry eight or fewer pas-

sengers no permit is required• if a bus is adapted to carry between nine and

sixteen passengers (‘small bus’) you need apermit

• if a bus is adapted to carry more than sixteenpassengers (‘large bus’) a permit is required butwill only be granted to bodies which providetransport services for more than one organisa-tion, that is to say umbrella bodies

Vehicles used under permit are not exempted fromPSV (Public Service Vehicle) regulations with re-gard to fitness and so are still liable for spot checkslike any other PSV. An initial certificate of fitnessmay be required.

Drivers of small buses need only their ordinarydriving licence. Drivers under 21 cannot, by andlarge, drive such a vehicle at all. There are certainexceptions and if you have a driver in this categoryit is best to consult DVLA (Driver and VehicleLicensing Agency) in Swansea.

Drivers of small buses aged 21 or over who passedtheir test on or before 30 June 1996 need only theirordinary driving licence. There are some exceptionsto the age rule: for details consult the Driver andVehicle Licensing Agency in Swansea.

Anyone who passed their first car driving testafter 30 June 1996 will have to take a second testunless:• they have two years’ driving experience; and• the vehicle is being used for social purposes; and• they are volunteering; and• the vehicle is under 3.5 tonnesAll drivers of large buses require a PSV licence.

You can obtain your permit from:• a national body of which you are a member rec-

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ognised for these purposes by the Traffic AreaOffice; or

• your local authority; or• your region’s Traffic Area Office (for address in-

formation see page 132)A small fee is usually payable. For further infor-

mation contact the Community Transport Associa-tion (address on page 131).

RECORD KEEPINGIf you hold personal information about recognisableliving individuals (‘data subjects’) you are almostcertain to be affected by the Data Protection Act,1998, and may have to register with the Data Pro-tection Commissioner.

Unlike the Data Protection Act, 1994 the 1998Act applies to manual records ‘forming part of arelevant filing system’ (eg a card index), as well ascomputerised records. Organisations that use onlypaper systems do not have to register. Organisationsthat use computerised systems are exempt if they usethe information only for personnel and payroll pur-poses, accounts and related customer or supplierrecords, advertising, marketing and public relations.Voluntary organisations’ membership records arealso exempt.

Information can only be processed – ie collected,stored, used or destroyed – if it meets one of anumber of specific conditions. There are stricterconditions to the processing of sensitive data (in-cluding information relating to racial or ethnic ori-gin, political opinions, trade union membership,health, sex life and criminal proceedings and con-victions).

Data subjects now have the right to see informa-tion about them held in manual as well as computer-ised systems.

New systems (both computerised and manual),created since 24 October 1998, must comply imme-diately with the new requirements. Computerisedsystems that existed immediately before that date,and information added to those systems, do nothave to comply with the new Act until 23 October2001, but must comply with the 1984 Data Protec-tion Act. Manual systems in place immediately be-fore 24 October 1998, and data added to those sys-

tems, have until 23 October 2007 to comply fullywith the new Act, although access to manualrecords begins after 23 October 2001.

Sensitive DataThe 1998 Act introduces categories of ‘sensitivepersonal data’: data relating to:• racial or ethnic origin• political opinions, religious belief or other beliefs

of a similar nature• trade union membership• physical or mental health (e.g. that an individual

has a heart condition)• sex life• the commission or alleged commission of any

offence• any proceedings for any offence committed or

alleged to have been committed, the disposal ofsuch proceedings or the sentence of any court insuch proceedings.

Additional conditions apply when dealing withsuch data, the main one being that the individualconcerned (the data subject) must give their ex-plicit consent.

For further information contact the Data Protec-tion Commissioner (address on page 131) and seeCommunity Matters’ Information Sheet 16 – DataProtection Act, 1998.

PROTECTION OF CHILDRENThe Children Act, 1989 has consolidated andamended many other earlier pieces of legislation todo with children. Amongst many other things, thisact imposes a general duty on local authorities toprovide a range of services for children, ie the duty isnot absolute and in some cases would depend onwhether it would be practical to provide a particularservice. The local authority will provide these di-rectly via its social services department or indirectlyvia voluntary organisations and others. In any eventcertain standards are required.

These standards are checked by the requirementto register under the Act. Whilst there are certainexemptions (such as short term crèche provision)most day-care services for children under eight pro-vided by community organisations must be regis-

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tered with the local authority social services depart-ment which also has powers of annual inspection.

You are required to register where the serviceoffered is for children under eight for a period, ortotal periods, of more than two hours in a day. Thisis irrespective of the time spent by an individualchild – for example, when a crèche is open all day.This requirement to register applies to playgroups,crèches, out-of-school schemes and holidayplayschemes, as well as other supervised activities.

In order to register, information on the organisa-tion and the people in charge of the service has to begiven and the premises are subject to certain stand-ards.

The information you are required to give is asfollows:• name and address of the provider (in the case of

an organisation this will include details of themanagement committee or directors and the per-son in charge)

• the type of service to be provided• the number of children involved• the premises, its facilities and access• staff and people living on the premises if applica-

ble• previous experience of providing activities and

relevant qualifications• references for the provider• state of health of the provider• details of criminal convictions of the providerThe standards that are required of the premises arevery technical and the local authority will tell youwhat precisely is required. They are set out in TheChildren Act, 1989 – Guidance and Regulations Vol-ume 2, Family Support, Daycare and Educational Pro-vision for Young People. The requirements are thereto ensure that there is adequate and suitable spacefor the children’s activity, that the lavatory arrange-ments are satisfactory and that fire safety and foodand hygiene standards are met.

When the Act first came into force, many localauthorities were over-zealous in carrying out its re-quirements and many voluntary organisations weretreated in an inflexible way. The Department ofHealth made it clear, in a circular to local authori-ties in January 1993, that many of the standards

should be seen as targets to be achieved by themanagers of voluntary organisations and commu-nity buildings and not, of themselves, be the reasonfor not registering or, indeed, closing down a facilityfor children’s activities. Flexibility seems to be thekey word of the circular, in applying the standards tovoluntary organisations. The circular also makes itclear that in buildings shared with other activities,only the areas used by the children are subject toregistration and inspection.

Two further points: you are required to registerannually, and social services departments have tosatisfy themselves that anyone associated with thechildren’s activity is a ‘fit person’. Managementcommittees should ensure that they take up refer-ences when recruiting staff, and seek explanationsof any gaps in the employment record. The point ofthis is, clearly, to satisfy yourselves that anyoneworking with children is going to treat them prop-erly and has no record of abuse.

POLICE CHECKSCurrently local authorities are able to carry outpolice checks on staff or volunteers they employ.These arrangements do not, except in very rarecircumstances, extend to voluntary organisationsundertaking children’s work. This means that youcannot have police checks carried out on potentialstaff or volunteers. Nor can the local authority havethem carried out as a condition of registration.However, a check can be made with the Depart-ment of Health consultancy service, which main-tains a register of individuals considered unsafe towork with children (address on page 131). Alwaysget permission from the individual before requestinga check. It is worth considering that, even if youcould have police checks run on new staff or volun-teers, you would only discover people who had arecord; first offenders would not be discovered. It issensible, therefore, with new people, not to leavethem alone with children until after a suitable in-duction period – six months is suggested.

The local social services department will almostcertainly have someone who can advise you on allthe ramifications of the Children Act. Contactthem before you decide to do anything.


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The rules about police checks will be changing.The Protection of Children Act, 1999 and the Po-lice Act, 1997 state that people working with chil-dren should be subject to police checks, and that itwill be a criminal offence to employ someone –whether paid or unpaid – who is banned from work-ing with children. The employer will be responsiblefor ensuring that the individual working with chil-dren has an up to date certificate (see below), but itwill be up to the individual to get the certificate.

Neither Act is yet in force, but there are propos-als to bring the legislation into force in 2001. ACriminal Records Bureau (CRB) has been estab-lished to deal with police checks under the Acts.Employers will not be able to apply for a checkwithout the knowledge and consent of the indi-vidual concerned. There will be three levels ofcheck (for which there will be a charge), dependingon the likely level of contact between adults andchildren: Criminal Conviction Certificates (whichshow unspent convictions), Criminal Record Cer-tificates (which also show spent convictions andcautions) and Enhanced Criminal Record Certifi-


cates (which also include relevant police intelli-gence that did not lead to a conviction). CriminalConviction Certificates will only be issued to theapplicant, who can decide whether to show it to apotential employer. The other certificates will besent to the applicant, with a copy to the registeredbody (see below).

To obtain a copy of an Enhanced CriminalRecord Certificate or Criminal Record Certificateyou will have to register with the CRB. Registeredbodies will be expected to have written policies onthe recruitment of ex-offenders and will be expectedto agree to store certificates securely and dispose ofthem once used.

The timing is not yet fixed but at time of writingthe CRB expected to start registering employers inMarch 2001, with the first Enhanced CriminalRecord Certificates being issued in July 2001. It wasexpected that other checks would be in operation byJuly 2002.

For further information contact the CRB(address on page 131).

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LICENSING AND OTHER LEGAL PERMISSIONSCHECKLIST

Has your organisation carried out thefollowing licensing and other legal permissionstasks?• checked all the possible licences you may

need: have you got them? Are they up todate?– sale of alcohol licence– separation of bar from main

organisation – occupation licence– public entertainment licence– theatre licence– film and video licence– copyright and royalty permission

with the author or author’s agentPerforming Right SocietyPhonographic Performance Ltd(do not forget the Community Mattersspecial deal)

– gaming and lottery licences– gaming and amusement machines– raffles and lotteries

• set up a checklist of all licences requiredwith renewal dates?

• checked your fire precautions?– equipment and premises– escape and checking procedures– notices– when did you last have a fire

practice?

• checked your building, especially thekitchen and lavatories, against all therequired health and safety and foodhygiene requirements?

• checked your food handling practices?• looked at all your trading activities?

– do you have the necessarypermissions?

– do you satisfy recognised tradingstandards?

– have you set up trading subsidiariesfor regular trading?

– have you taken out the necessarycovenants?

• discovered if you need any planningpermissions?

• registered with the TrafficCommissioner if you have a minibus?

• registered with the Data ProtectionRegistrar, if necessary, if you keeppersonal information?

• registered your playgroup or otherchildren’s activities with the local socialservices department?

• registered the premises under the FoodPremises (Registration) Regulations,1991?

USEFUL ADDRESSES


Charity CommissionHarmsworth House13-15 Bouverie StreetLondon EC4Y 8DP(Responsible for national, localand overseas charities based inLondon and South East Englandincluding East Anglia)

2nd Floor20 Kings ParadeQueens DockLiverpool L3 4DQ(Responsible for national, localand overseas charities based inthe Midlands, parts of Wales andthe north of England)

131


Woodfield HouseTangierTauntonSomerset TA1 1BL(Responsible for national, localand overseas charities based inparts of Wales, southern andsouth western counties)

☎ for all offices)0870 333 0123e-mail feedback@charity-

commission.gov.uk

web site www.charity-

commission.gov.uk




web site communitymatters.org.uk

Community Trading ServiceLtd (CTS)8/9 Upper StreetLondon N1 0PQ

☎ 020 7226 0189e-mail

[email protected]

web site


Community TransportAssociationHighbankHalton StreetHydeCheshire SK14 2NY


web site

www.communitytransport.com

Criminal Records Bureau(CRB)PO Box 91Liverpool L69 2HUweb site www.crb.gov.uk

Data Protection CommissionerWycliffe HouseWater LaneWilmslowCheshire SK9 5AF

☎ 01625 545700web site www.dataprotection.gov.uk

Department of HealthConsultancy Service134 Wellington House133-155 Waterloo RoadLondon SE1 8UG

☎ 020 7972 4056

Gaming Board for Great BritainBerkshire House168-173 High HolbornLondon WC1V 7AA

☎ 020 7306 6269

Health Development AgencyTrevelyan House30 Great Peter StreetLondon SW1P 2HW

☎ 020 7222 5300

The Health and SafetyCommissionRose Court2 Southwark BridgeLondon SE1 9HS

☎ 020 7717 6000web site www.hsc.gov.uk

The Health and SafetyExecutivePublic Enquiry PointInformation CentreBroad LaneSheffield S3 7HQ


web site www.hse.gov.uk

The Lotteries Councilc/o Hon SecretaryWindermere HouseKendal AvenueLondon W3 0XA

☎ 01457 872988

The Mechanical CopyrightProtection SocietyElgar House41 Streatham High RoadLondon SW16 1ER

☎ 020 8769 4400web site www.mcps.co.uk

The Office of Fair TradingField House15-25 Breams BuildingsLondon EC4A 1PR

☎ 020 7211 8000

☎ 0845 7224499 (consumerinformation)web site www.oft.gov.uk

The Performing Right Society29/33 Berners StreetLondon W1P 4AA


web site www.prs.co.uk

Phonographic Performance Ltd1 Upper James StreetLondon W1R 3HG

☎ 020 7437 0311web site www.ppluk.com

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Traffic Area OfficeDepartment of the Environment,Transport and the RegionsEland HouseBressenden PlaceLondon SW1

☎ 020 7944 2127web site www.detr.gov.uk

There are eight regions, coveredby six offices – Eastbourne,Leeds, Edinburgh, Bristol,Birmingham Cambridge – youcan get details from the abovenumber if you cannot find themin the phone book.

Video Performance Ltd1 Upper James StreetLondon W1R 3HG

☎ 020 7534 1400

The Code of Good Practice –The Operation of Minibuses inthe Voluntary Sectorpublished by the CommunityTransport Association


Data Protection Act 1998–Information Sheet 16published by CommunityMatters

Data Protection for VoluntaryOrganisationspublished by the Directory forSocial Change

Fire Safety Regulations andChecklist for CommunityCentres – Information Sheet 38published by CommunityMatters

First Aid at Workpublished by the Health andSafety Executive

Food Safety and Food HygieneRegulations – InformationSheet 11published by CommunityMatters

Guide to Fire Precautions inExisting Places of PublicEntertainment and LikePremisespublished by the Home Office,available from the StationeryOffice

A Guide to Food Hazards andYour Business – Identifying andControlling Potential FoodHazardspublished by the Department ofHealth

FURTHER READING

5 Steps to Risk Assessmentpublished by the Health andSafety Executive

The 1998 Data Protection Actpublished by LASA

Basic Advice in First Aid atWorkpublished by the Health andSafety Executive

Bingo – Information Sheet 26published by CommunityMatters

Charities, Trading and the Lawpublished by the Directory ofSocial Change

Charity Shopspublished by the CharitiesAdvisory Trust, available fromthe Directory of Social Change

133

A Guide to the General FoodHygiene Regulations 1995published by the Department ofHealth

A Guide to the GeneralTemperature ControlRegulationspublished by the Department ofHealth

Health and Safety inCommunity Centres –Information Sheet 12published by CommunityMatters

The Health and SafetyHandbookpublished by the Directory ofSocial Change, available fromCommunity Matters

Licensing and Other StatutoryRequirementspublished by ACRE and Com-munity Matters

Lotteries and the Lawpublished by the Gaming Boardfor Great Britain

Management of Health andSafety at Work Regulations,1999: Approved Code ofPractice and Guidancepublished by the Health andSafety Executive

Office Health and Safety – AGuide for Union Repspublished by the LabourResearch Department

Officewisepublished by the Health andSafety Executive

Passive Smoking at Workpublished by the Health andSafety Executive

Planning Fees: Village Hall –Information Sheet 1published by ACRE

Providing Alcohol on CharityPremises – CC 27published by the Charity Com-mission

Public Entertainment Licences– Information Sheet 52published by CommunityMatters

Safeguarding Children andYoung People – InformationSheet 30published by CommunityMatters

A Step by Step Guide toCOSHH Assessmentpublished by the Health andSafety Executive

Trading by Charities – CS2published by the Inland Revenue

VDUs: An Easy Guide to theRegulationspublished by the Health andSafety Executive


Welfare at Work: Guidance forEmployers on WelfareProvisionspublished by the Health andSafety Executive

Working with VDUspublished by the Health andSafety Executive

Workplace Health, Safety andWelfarepublished by the Health andSafety Executive

Workplace Health, Safety andWelfare: A Short Guide forManagerspublished by the Health andSafety Executive

Workplace (Health, Safety andWelfare) Regulations, 1992:Approved Code of Practice andGuidancepublished by the Health andSafety Executive

Writing a Safety PolicyStatement: Advice to Employerspublished by the Health andSafety Executive

Your Minibus – Is It Legal?published by the CommunityTransport Association

All Acts of Parliament referred toin the text can be purchased fromthe Stationery Office

Publishers’ addresses can befound on page 180


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135

Heating, lightingand cleaning

8888888888888888888888888888888

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INTRODUCTION

HEATING, LIGHTING AND CLEANING

Everyone does some cleaning in their life, everyonehas responsibility for heating their home and mak-ing sure the lighting is both adequate and suitable totheir taste. So why bother to have a chapter on it ina book about community buildings? In fact there aremany reasons: a well maintained, clean and warmbuilding is a place people like to use so your book-ings will go up. Recycling waste can help save vitalglobal resources that are rapidly diminishing. Tosome saving the planet can feel a somewhat distantobjective, but saving money for the centre by hav-ing energy efficient insulation, heating and manage-ment systems helps you and the planet at the sametime!

DESIGN AND PLAN FOR EFFICIENCY

A community sports centre had doneparticularly well in converting a former workscanteen for its purposes. A well planned andsuccessful fund-raising campaign had enabledthe committee to provide a range of highquality facilities in an area devoid of sportingprovision. The committee was particularlyproud of its brand new, top of the range,composition main floor. It was a perfectsurface for all sorts of indoor sports, easy tomaintain and quick to clean.

The only problem with it, common tomany floors, was that it became very slipperywhen wet, and ice skating was not one of thesports offered!

A badminton player came running out ofthe changing rooms shortly after the floor had

been cleaned. He slipped and broke hiship. There was a long drawn outcompensation claim.

This is not a tale about a committeefacing financial ruin because of badinsurance. Fortunately this particularcommunity building had good insurancecover and all expenses were eventuallymet. But serious injury could have beenavoided simply by better cleaningmanagement – a prominent notice tellingusers that the floor was wet andtherefore dangerous. Or, better still, acleaning management programme thatensured that the floor had thoroughlydried by the time players wanted to useit.

The majority of people reading this book will nodoubt be managers of already existing communitybuildings. There may be a few who are planning anew one.

NEW BUILDINGSIn the latter case it is vital to give attention at thedesign phase to a range of features that ensure maxi-mum efficiency in terms of energy consumption,

There are hazards to be avoided in the mainte-nance and cleaning sphere, the sorts of things that alittle planning and thought can prevent. Cleaning,heating and generally caring for community build-ings is a little different from doing the same for yourhome: the principles are the same but the scope iswider. This chapter points you in the direction ofseeing heating, lighting and cleaning as an impor-tant part of your responsibilities in managing yourbuilding so that, by proper attention, the place canbe pleasant, efficient and cost effective to use now,and you can prevent a build up of expensive prob-lems in the future.

A CAUTIONARY TALE

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to consider these factors for existing buildings too. Itis nearly always possible to improve the efficiency ofheating, lighting and cleaning in your communitybuilding no matter how old it is.

A good suggestion is to appoint a person or sub-committee with special responsibility for mainte-nance and ask them to produce a plan of action onheating, insulation, cleaning, waste disposal, rou-tine building maintenance and measures for manag-ing the building with conservation and cleanlinessin mind. The programme or plan of action shouldalso include capital improvement measures, prop-erly costed for fund-raising purposes. These will beseen as investments for future lower running costs.In addition the sub-committee should produceguidelines for effective and efficient day to day ac-tion on heating, lighting, cleaning, ventilation, in-sulation and refuse disposal.

The maintenance programme can be a cyclicalone. That is it can set out its recommended actionsover a period of time so that depending on financeand type of action, everything can be covered over afive year period, by which time much of it will haveto be done again. This way of working enables youto plan financially in a much better way too.

ease and efficiency of cleaning, hygiene and wastedisposal. It is important to build adequate insulationinto your building from the beginning, to make sureyou get the right sort of heating system both fromthe point of view of doing the specific job you need– giving you controllable heat in all the rooms at alland only those times that it is required; and alsofrom the point of view of cost – getting the lowestbills without losing quality. This book does not gointo detail on designing new buildings. Rather youare referred to a good publication by ACRE calledPlan, Design and Build. From the point of view ofbuilding in energy-efficient equipment and systemsyou might also find it well worthwhile to consultenergy conservation specialists. Considerable sav-ings in running costs can be made with only slightlyhigher capital costs than conventional buildings.Friends of the Earth is a good place to start to get theright source of advice. Their address is given on page144.

CREATING A MAINTENANCECOMMITTEE AND PLAN OF ACTIONPlanning and design do not only apply to buildingsas yet unbuilt, however. It is important and practical

HEATING AND LIGHTING

ENERGY CONSUMPTIONIt is likely that the relative energy consumption ofyour community building is not much different froman average house. This means that you will consumeenergy as follows:

• space heating 66%• water heating 21%• cooking 10%• appliances 3%

100%

Clearly there are more savings to be made on thehighest areas of consumption.

FEELING WARM ENOUGHIt is important to feel just warm enough, not too hotand not too cold. There are several factors affecting

this and not just air temperature as most people tendto assume. Whilst air temperature is certainly verysignificant, feeling warm enough is also determinedby the temperature of things around us such as wallsand the movement of air around us – draughts. Inorder to feel warm enough in the most efficient andenergy saving way attention must be given to all ofthese factors.

PREVENTING DRAUGHTSHeat loss through badly fitting doors and windows,and indeed doors and windows left partly or fullyopen, constitutes a very significant part of the over-all heat loss of your building and yet its prevention iseasier and cheaper than most other aspects of energyconservation. Simple but effective things to doinclude:

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• train people to shut doors, especially externalones and doors between warm and cold rooms• alternatively fit door closers• do not open windows when the heating is on: if

you are too warm turn the heating down or takesome clothing off

• ventilate areas that need it, such as kitchens andlavatories, for timed periods only and keep thedoors shut between these areas and other rooms

• check all windows to ensure that they are notjammed open, even a little – particularly highwindows and roof lights

• check that any existing draught excluders arestill functioning effectively

• fit new draught excluders to windows and doorsas necessary

PREVENTING HEAT LOSS BYINSULATION AND SECONDARYGLAZINGIn terms of saving the planet insulation and doubleor secondary glazing are always worth considering.In all but new buildings, however, the cost of install-ing double glazing will not be recouped by lower fuelbills for many years. In new buildings the ratio ofcapital cost to fuel saving is much more advanta-geous. Serious consideration should be given toevery possible form of insulation and double glazingin excess of current building regulation require-ments. Very significant savings indeed can be made.These savings can be magnified even more if solarheating is added. A school in Cornwall, designedwith energy efficiency in mind, has heating billsmore than 40% lower because of careful planning.

Double glazing is used to describe purpose builtsealed window units with two layers of glass. Sec-ondary glazing refers to second skins, be it of glass orsome other material, which are fitted over existingwindows. Double glazing is well worth fitting in newbuildings. In existing buildings double glazing isonly cost effective in the long term or where exist-ing windows have to be replaced anyway.

Nevertheless there are many things that can bedone to reduce heat loss in existing buildings bysome form of insulation and secondary glazing. Theimportant thing to remember is to use appropriate

technology rather than expensive factory madeunits. In addition concentrate efforts where they aremost effective. By appropriate technology is meantsimple but effective measures including DIY. Haveyou considered the following?:• hanging heavy double-lined curtains over all ex-

ternal windows with one of the linings of a pad-ded nature; (it is important to consider treatingcurtains with a flame retarding substance; if youhave stage curtains your entertainments licencewill require this; the most widely used product isknown as Flame Bar manufactured by Flame BarLtd; their address is given at the end of thechapter)

• pulling curtains at night making sure to tuckthem behind the radiators

• fitting your book-shelves and cupboards on exte-rior walls

• secondary glazing roof-lights (the heat loss hereis particularly high as heat rises)

• secondary glazing other windows in a relativelycheap way by using polythene sheeting andwooden battens. The cheapest way is to use clingfilm and masking tape. It certainly works. This isbecause the insulation is the trapped air and notthe film itself

• laying carpet with a good thickness of underlay.Several layers of newspaper are better than nounderlay at all

Further insulation is also possible and will dependon your budget. Walls, roofs and floors can all betreated in a range of ways. Get proper advice andestimates – there can be expensive side effects of badinsulation. The prime one is increased condensationwhich can lead to outbreaks of rot.

TYPES OF HEATING SYSTEMIn addition to the largely conservation measures sofar considered, further efficiency and cost saving canbe gained by controlling the use of energy. This isdone by getting the best heating system for yourbuilding, and by controlling its use sensibly.

New BuildingsIf you are one of the fortunate few planning a newcommunity building then you must give serious at-


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tention to the type of heating system you require foryour expected pattern of use. There is no singleanswer to all problems but there are a few generalprinciples:• go for maximum control and flexibility so that

you can direct heat to those areas where you needit, when you need it

• consider safety and comfort factors• consider price, availability and cleanliness of

heat sources – gas and solar power can be usedtogether and both are clean and environmentallyfriendly. Solar power is now available even if it iscloudy!

To repeat earlier advice: do consult an energy con-servation specialist at the design stage. Do not justrely on your architect.

Existing BuildingsAll the above factors apply to existing buildings tooif you are thinking of renewing your heating systemfor any reason. Even if that is not the case, there areplenty of things you can do to improve the effi-ciency of the system that is already installed. Someof them will cost little or no money, others mightinvolve you in a bit of expense:• turn off heating in unused rooms• bleed radiators regularly• make sure that radiators are ‘balanced’ – all set at

the right heat in normal functioning• set room temperatures at the lowest comfortable

level, remembering:– office/sitting temperature should be

approximately 18°C– older people and toddlers need a higher

temperature– turning down the setting by 1° could make

a 6% saving in cost– sports and activity spaces require a lower

temperature• make one or more people (possibly members of

your maintenance sub-committee) responsiblefor:– monitoring and experimenting with the set-

ting of time switches and thermostats toachieve the most efficient heating programme

– seeing that switches are actually set and used

at appropriate times• lag or double lag the hot water tank and hot

water pipes• mend leaky taps – a one-drip-a-second tap can

waste 3 gallons of hot water a day• service your boiler regularly – this could save at

least 10% of energy consumption• fit a time switch on the boiler and make sure that

it is set to its most efficient setting• fit shelves above radiators to deflect heat to the

centre of the room• consider installing point of use water heaters for

places where centrally heated hot water is uneco-nomical – usually where a long pipe run is re-quired and hot water is only needed occasionally.

• switch to low energy light bulbs• fit reflective foil behind radiators on outside

walls – this could improve the efficiency of eachradiator by 40%

• fit thermostatic valves on all radiators• in large buildings consider fitting a control panel

that allows zone heating, that is heating certainsections of the building independently of others

• consider the use of individual portable roomheaters for those times when the whole buildingdoes not need to be heated

• investigate the economics and aesthetics ofputting in a false ceiling in very tall halls andother rooms

• alternatively consider installing a de-stratifica-tion fan; this is a way of moving unused trappedheat from the top to the bottom of high rooms

If your building does not have a central heatingsystem it may be worth examining the economicsand convenience of installing one even though thecapital costs will take a considerable period of timeto recoup. Remember that gas is more environmen-tally friendly (and cheaper) than most other formsof fuel other than solar energy. Economy Sevenheating systems use cheap electricity, storing it upduring the night and using it during the followingday. Such systems are cost effective but you have lesscontrol over the heat output. Electricity generationdoes much more damage to the environment thanmost other forms of energy.


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AN EDUCATIONAL OPPORTUNITYAll the measures described amount to an EnergyManagement Programme. The development of sucha programme will take considerable time and work;but it will definitely save you money. It can also bevery interesting and educational. The maintenancesub-committee could consider involving teachersand young people from the local school: environ-mental studies is becoming very popular. Making acase study out of your heating management could

benefit you, the young people and the community ingeneral, particularly if an environmental displayboard in the building is included. Friends of theEarth have lots of helpful material specially pre-pared for schools. The Department of Environment,Transport and the Regions’ Energy, Environmentand Waste Directorate also has schools’ informationpacks (address on page 144).


CLEANING

Good cleaning and waste removal systems are essen-tial in a community building for health and hygienereasons and for comfort and presentation purposes.People who work in or use your building will feelbetter in a clean environment and achieve theirgoals with that much more ease than in a dirty,scruffy and dowdy one. There seem to be threeimportant aspects to achieving a good cleaning pro-gramme: technical, staffing and management.

TECHNICAL ASPECTS OF CLEANINGThe technical aspects of cleaning are as follows:• the things that need cleaning and its frequency• the materials required• the equipment required• the replacement of consumables – soap, lavatory

paper and towels• the removal of wasteMost cleaners have not been trained in commercialor indeed community building cleaning. Theywould welcome the opportunity to work out system-atically with someone from the committee, the pre-cise cleaning requirements for each room. This ena-bles the cleaners’ job to be more structured which inturn will help with the management of the cleaningstaff. This includes making it easier to supervise andcheck the work; and, if it comes to it, it makesdisciplining them easier as well. If you have notdone it already, delegate a member of your Mainte-nance Sub-Committee to go through the process forevery room of the building.

Opposite is a sample programme for a washroom/lavatory area, in this case divided into preparation,

cleaning and disinfecting, finishing, and occasional.A similar schedule should be worked out for each

room. Based on this the right kinds of cleaningproducts and equipment can be ascertained andstocks kept replenished. It is important that an ad-equate cleaning storage space is designated.

If you feel you would like some professional helpwith this process there are at least two ways you cango about it. Firstly you can get hold of the, oftenvery helpful, publicity material produced by themanufacturers of commercial cleaning products.This sometimes contains room by room suggestionslinked to cleaning products. Secondly you can askthe representative of such a firm to visit you andadvise on your specific cleaning requirements. Thiswould probably be free of charge in the hope of aregular order for that particular firm’s products.Never forget that manufacturers will favour theirown products so a second opinion from a largecleaning materials supplier would be helpful too.

A NOTE ON FLOORSThere is a wide range of different floors available fordifferent purposes and to suit different budgets. Ifyou are planning a new building or thinking ofputting in a new floor in an existing one, thenspecial attention should be given to choosing theright kind of floor(s) for your use. You will need toconsider a whole range of factors including ventila-tion, durability, price, ease of cleaning, safety andcomfort. The detailed consideration of choosing anew floor is beyond the scope of this book. ACREpublishes a very useful booklet devoted to floors

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• fit shoe cleaning gratings, of the type that cannotbe avoided, outside the building entrances

• lay a large area of matting just inside the en-trances

• beat the entrance matting regularly and cleanout the well in which it is set

• move chairs and tables on wheeled trolleys• fit plastic or rubber ferrules to chair and table legs• keep ventilation channels clear of debris• restrict use of stiletto heels and studded boots• restrict smoking or, at least, provide plenty of ash

trays and put up notices to prevent stubbing outcigarettes on the floor

• use protective mats and sheeting for sand-playand water-play areas and other areas such as thestrip in front of the bar

• institute a thorough and regular floor mainte-nance and cleaning programme including:– sealing– cleaning– polishing– re-sealing

• seek advice from the manufacturer of your specificfloor, or from a supplier (not a manufacturer whowill favour its own products) of industrial cleaningmaterials on the type of sealer and polish mostsuitable. You can also seek advice from your localauthority on floor maintenance. The caretakingsection of one local authority has been very helpfulto community organisations in its area.

STAFFING ASPECTS OF CLEANINGMost cleaners are taken for granted. Most commu-nity buildings do not have enough cleaning stafftime to do a proper job. Cleaning community build-ings can be a lousy job (metaphorically and actu-ally!) Most cleaners are locally recruited womenwithout training or experience of cleaning commu-nity buildings. Most cleaning staff do the job whenno one else is around.

All these factors conspire in giving most cleanersa pretty poor time. Proper supervision, managementand guidance of the kind set out here and in chapter3 will make your cleaners’ lives and your life muchhappier. The building will undoubtedly benefit too.

called The Village Hall: Floors. One conservationpoint: if you decide on a wooden floor make sure youbuy it from a supplier who uses timber from a renew-able source.

Looking after your floor can be a relatively spe-cialised job. Bad care can be expensive as the surfacemight be damaged and need replacing much earlierthan if it had been well looked after. Prevention isundoubtedly better than cure and much cheapertoo. The following suggestions will help to preservethe attractiveness and the life of your floor:


SAMPLE CLEANING SCHEDULE FORWASHROOM/LAVATORY AREA

Preparation• flush WCs and urinals• apply germicidal cleaner• tidy and remove litter: ashtrays, paper, waste bins

Cleaning and Disinfecting• dust light fittings• damp clean and sanitise: shelves, cistern tops,

taps, lavatory seats, flush handles, window sills,tiles and other hard surfaces and accessories

• remove deposits, de-scale, clean and disinfect:sinks, splashback,

• clean and polish: mirrors, windows and otherglass surfaces

Finishing• replenish: lavatory paper, soap/wash cream, hand

towels, deodorant blocks• spray air freshener into corners• sweep and damp-mop floor• brush and re-flush WCs and urinals

Occasional• clean paintwork• sanitise plastic blinds• spray insecticide into corners

You will need to specify more closely the frequencyfor carrying out the various tasks. This will varydepending on the specific use of your building andthe availability of cleaning time.

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MANAGEMENT ASPECTS OF CLEANINGThe management aspects of cleaning referred tohere are treating cleaning and waste disposal as asystem which needs careful management ratherthan something that just happens.

An important part of this systematic approachhas already been referred to under technical aspects.There are others equally important. These includemeasures to educate the users of the building. Youmight, for example, want to include in your guide-lines for users/hiring agreement, requirements toleave the place as it was found, (putting back re-arranged furniture can take up a lot of valuablecleaner time), sweeping through the main hall, en-suring rubbish is put in the right place in the rightway and so on. If this is the case it is useless toassume that groups will do it all to your satisfactionunless you provide the necessary implements andrubbish bags. Paid staff and volunteers need to beeducated in the particularities of your system too.

It is to be hoped that you have policies for eco-logical waste disposal (see following). This needsmanaging as well. Of course someone has to managethe notices for wet floors too!

CLEANING OUTSIDE THE BUILDINGIn chapter 11 – Reaching Out the importance ofhaving an open and attractive image is stressed.Creating a good first impression is vital in this proc-ess. It is not, in fact, very difficult or time-consum-ing to keep the outside of the building clean andtidy, but for some reason it often tends to get forgot-ten. Here are some suggestions:• create an enclosed space for your refuse area with

separate containers for glass, paper, cans and eve-rything else

• always clean up as soon as the council has col-lected the refuse

• provide plenty of litter bins• make it someone’s responsibility regularly to

sweep up remembering not to forget the crisppackets caught in the bushes

• have the windows cleaned regularly• clean off or paint out graffiti as soon as they

appear (graffiti remover is available from indus-trial cleaning materials suppliers)

• clean out shoe scrapers regularly


WASTE DISPOSAL

RECYCLINGHere’s another opportunity to help save the planet.Much of your waste can be recycled thus helping toprevent the destruction of our environment by usingup scarce natural resources. By recycling glass, cansand paper you can make your contribution to thisvital process. The knowledge that you have contrib-uted and the good feelings that come from that areyour reward: it is unlikely that you will make or saveany money for your community building funds.

It is all really quite simple and just takes a littlemanaging. You need four receptacles to put yourwaste, one for paper, one for glass, one for drinks cansand one for all the rest! Once again a little internalmanagement with well marked bags or bins will makethe separation of rubbish a fairly simple matter.Waste Watch operates a recycling information linewhich can advise you on the best way of recycling

specific types of waste (address on page 144).You may be able to arrange for the local authority

to collect your recyclable waste and they will makesure that it is properly dealt with. If you cannot dothis then you will need to take it to the nearestappropriate ‘banks’. There are increasing numberson the streets or your area may have a council‘dump’ which will probably have all the necessaryrecycling containers. If the Council does not yetmake such provision then perhaps you will want toput pressure on them so to do.

If you are in touch with a local school, recyclingcould be part of a practical education programme.Friends of the Earth will again help with literature.

REFUSE CHARGESIn the good old days it did not seem to matter howmuch rubbish you put out. It would still be taken

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away by the local authority and paid for out of therates. By and large that still is the case for mostdomestic charge payers.

Although the situation varies from authority toauthority things are now different for business ratepayers whether genuine ‘businesses’ or charitableand other community organisations. Most authori-ties now make a charge to such bodies for takingaway their refuse. In most cases it is graduated. Inother words the charge is made according to howmuch rubbish you put out.

There are various ways this arrangement canwork. The simplest is that the charge is levied by thesack of rubbish. Another is that a paladin schemecan be arranged. A paladin is an extra large dustbinthat can be fitted to the back of the dust cart andmechanically emptied. Consult your local authorityfor details of the particular schemes available in yourarea to work out the most economic one for yourcommunity building.

Local authorities have discretionary powers towaive some or all refuse collection charges. Thecurrent situation is that some exercise this powerfavourably when it comes to charitable organisa-tions and many more do not. Thus it is sensible totry to negotiate with your local authority for lowercharges, reminding them of their powers and refer-ring to the fact that some authorities are generous inthis respect. It is the kind of issue that is likely to bedealt with positively if you get together with othervoluntary organisations in your area.

HEATING, LIGHTING ANDCLEANING CHECKLIST

Has your organisation considered the following tasks ?• setting up a maintenance sub-committee/giving

responsibility to an individual for the oversight of allmaintenance matters

• producing a detailed cyclical maintenance plan ofaction

• taking all appropriate measures to reduce energybills and particularly:– draught prevention– insulation– secondary glazing– heating system maintenance– heat control systems

• having an energy management programme• turning energy conservation into an educational

project• giving cleaning the attention it deserves particularly:

– producing detailed schedules for cleaners– treating your cleaning staff as human beings and

professionals like all other staff and volunteers– managing the cleaning programme (not just

expecting it to happen!)– giving attention to outside the building

• going green on waste disposal

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USEFUL ADDRESSES

ACRE(Action with Communities inRural England)Somerford CourtSomerford RoadCirencesterGloucestershire GL7 1TW






web site


Contract Flooring Association4c St Mary’s PlaceThe Lace MarketNottingham NG1 1PH


web site www.cfa.org.uk

Energy, Environment andWaste DirectorateThe Department ofEnvironment, Transport andthe RegionsAshdown House123 Victoria StreetLondon SW1E 6DE

☎ 020 7944 3000web site www.detr.gov.uk

Energy Saving Trust

☎ 0345 277200 (energyefficiency hotline)web site www.est.org.uk

The Environment AgencyRio HouseWaterside HouseAztec WestBristol BS32 4UDe-mail enquiries@environment-

agency.org.uk

web site www.environment-

agency.gov.uk

Flame Bar LtdUnit 1Croydon RoadBeckenhamKent BR3 4BL

☎ 020 8658 2299web site www.bolloms.com

Friends of the Earth26-28 Underwood StreetLondon N1 7JQ


web site www.foe.org.uk

Neighbourhood Energy ActionSt Andrew’s House90-92 Pilgrim StreetNewcastle upon Tyne NE1 6SG

☎ 0191 261 5677

Waste WatchEuropa House13-17 Ironmonger RowLondon EC1V 3QN

☎ 020 7253 6266

☎ 0870 243 0136 (helpline)web site www.wastewatch.org.uk

FURTHER READING

Community Recyclingpublished by Waste Watch

Energy Efficiency inCommunity Buildingspublished by NeighbourhoodEnergy Action

The Green Energy Guidepublished by Waste Watch

Maintaining Your Hallpublished by ACRE

The National RecyclingDirectorypublished by Waste Watch

Plan, Design and Buildpublished by ACRE

The Village Hall: Floorspublished by ACRE

The Village Hall: Heatingpublished by ACRE

Waste and Recyclingpublished by Friends of the Earth

Work at Waste at Workpublished by Waste Watch

The Environment Agencypublishes a wide range of usefulpublications.


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Furnitureand equipment

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INTRODUCTION

FURNITURE & EQUIPMENT

A CAUTIONARY TALE

GENERAL CONSIDERATIONS

Unless you are among the lucky few who are devel-oping new community buildings or the unfortunatefew who have just had a fire, the provision of furni-ture and equipment will be an on-going operation.As needs demand and funds permit, you will replacedifferent items of equipment or provide totally newones for new activities. Whether equipping a brandnew centre or thinking of doing out a single roomyou may find the checklist at the end of the chapteruseful.

Certain large items of equipment, such as photo-copiers, are usually leased. This is an area where it is

possible to get caught out with an agreement that isvery disadvantageous. Some information and tipsare given about the various possibilities so that youcan get the best possible deal.

Before buying anything it is important to makesure that you are quite certain about what is neededand to have a full discussion at committee level.Consultations with specialist users and interestgroups are also wise before purchasing particularequipment which only they might really knowabout. If anything needs to be signed always get asecond person to read it through before you sign.

One particular community building which, asever, shall remain nameless decided it needed anew photocopier. The decision was taken atcommittee and the honorary treasurer wascharged with making the necessaryarrangements for having the copier installed.

The treasurer contacted a local businessequipment firm and a representative called.Although the treasurer was somewhatconfused by the array of ways of getting theuse of a photocopier and the features andprices of different makes and models, heeventually decided on a machine he thoughtsuitable. The representative produced anagreement for the treasurer to sign. It wascovered in small print. The representativeexplained what it all meant and asked for asignature. He took the agreement away saying

that the community association would receiveits copy when the machine was delivered thefollowing day.

The machine duly arrived and workedperfectly. As promised, a copy of the leaseagreement was also delivered. When thetreasurer saw this he thought it was slightlydifferent from the one he had signed but hecould not be sure.

When the bills came in the secretary saidthat the machine was very expensive. Thetreasurer thought so too but knew that theywere in line with the changed agreement whichhe had not queried. Too embarrassed to sayanything, he advised that the bills were not paid.The firm took the community association tocourt and won.

The community building should be warm, invitingand comfortable. If it is not, people might only makeone visit. So it is important to furnish and equip theplace with this in mind. Basically this means buying

good quality equipment that is attractive as well asserviceable.

Some of your users may be frail and not up tomoving heavy tables and chairs. So as well as buying

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something that is tough you need to consider weightand ease of assembly. Whilst it is not the purpose ofthis book to give a list of preferred suppliers or makespecific recommendations it does seem to be thecase that many community organisations havefound that Gopak tables fulfil all these require-ments. For ease of movement and to avoid damagingfloors it is advisable to have a trolley designed tomove stacks of chairs or tables.

A small, but important point to remember whenbuying crockery is that inevitably there will bebreakages. It is therefore sensible to ensure that youbuy from a range that will continue to be made.Otherwise you will join those centres which look asif they have been fitted out from several differentjumble sales.

Sometimes the need for durability and reliabilityin a piece of equipment will mean spending more onit than you would spend on a similar item for domes-tic use. A particular example is the vacuum cleanerand polishing equipment. Experience in many com-munity centres and village halls has shown thatpaying extra for an industrial quality machine is wellworth it. It is also important to make sure that youget the right equipment for the purpose. With floorsagain make sure that you follow the installers’ rec-ommendations when it comes to polish and polish-ers.

Keep an updated inventory of all your furnitureand equipment. This will be valuable when it comesto revaluing the amount of your contents insurance.(See chapter 5.)

DISABILITY DISCRIMINATION ACT

PROVIDING GOODS AND SERVICESUnder Part III of the Disability Discrimination Act,1995 (DDA) unless different treatment is justifiedunder one of the exceptions set out below it isunlawful for a service provider to:• refuse to serve a disabled person, or deliberately

not serve that person for reason(s) relating totheir disability

• provide a disabled person with a service on lessfavourable terms, for reason(s) relating to theirdisability

• treat the person less favourably by offering alower standard of service provision, or forreason(s) relating to their disability

This applies to all service providers – whatever theirsize – and whether the service is free or charged for.

In addition, unless different treatment is justifiedunder one of the exceptions service providers must:• review policies, practice and procedures – this

would involve taking reasonable steps to amendany practices, policies and procedures whichmake it impossible or unreasonably difficult fordisabled people to make use of a service

• take reasonable measures to provide auxiliary aidsand services to enable disabled people to make useof a service or to use it more, for example:

– produce information on audio tape, in Brailleand in large print

– provide induction loops, textphones and signlanguage interpreters

– use simplified text– have well designed, clear signs, portable ramps

and designated car parking.• take reasonable steps to provide services by

alternative means where the design or construc-tion of a building or access to a building makes itimpossible or unreasonably difficult for disabledpeople to make use of a service. Examples wouldinclude providing services which normally re-quire a person to come into an office at otherlocations, at home, by telephone or by videolink.From 2004 providers must take reasonable meas-

ures to remove or alter any physical features in theirpremises which make it impossible or unreasonablydifficult for a disabled person to use a service orprovide a reasonable means of avoiding the feature.

DEFINITIONThe DDA defines disability as a physical or mentalimpairment that has a substantial, long-term adverseeffect on a person’s ability to carry out normal day today activities. Some disabled people will definitely be

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included in the definition, for example someone whois blind, deaf, has an amputated limb, is a long-termwheelchair user, or has a severe, long-term medicalcondition such as AIDS, multiple sclerosis or insulindependant diabetes. Other cases are not so clear cut,for example someone with partial sight, impairedhearing, impaired mobility, learning difficulties, a dis-figurement, or a frail older person may or may not fallwithin the Act’s definition.

EXCEPTIONSA disabled person may be treated less favourablythan anyone else if you reasonably believe:• the health or safety of the disabled person or

someone else may be in jeopardy if you providethe same service or facility

• the disabled person is not capable of understand-ing the terms of a contract, ie the nature of theagreement or his or her legal obligations

• providing the service, or the same standard ofservice to the disabled person would stop youfrom providing any service at all

• it would cost you more, in materials or labour, toprovide a service to meet a disabled person’s par-ticular needs. If this is the case you may chargemore to reflect the increased cost.

An event open to the public which is being held in acommunity building is classed as a service. In suchcases the centre would not be considered as a‘premises’ to be made available under the Act’s pro-visions regarding access to premises. However, theevent organisers would need to consider makingreasonable adjustments to enable access for disabledpeople.

Community Matters’ Information Sheet 17 –Disability Discrimination Act 1995 – goes into furtherdetail about all aspects of the DDA, including defi-nitions of disability. For further details of the re-quirements for service providers and examples oftheir effect, see the Code of Practice: rights of access,goods, facilities, services and premises available fromthe Stationery Office or from the Disability RightsCommission (DRC) web site www.drc-gb.org/drc orThe Disability Discrimination Act 1995: what serviceproviders need to know, available from the DRC website.

STORAGE SPACE

Adequate storage space is vital to the success of anefficient community building. It is important forreasons of tidiness, security and safety.

In the office you will need a fire-proof lockingfiling cabinet for your confidential records and asturdy fire-proof locking cupboard for stationery andvaluable pieces of equipment. It is also important tooffer staff and volunteers a place to keep personalvaluables. A safe is also essential to store any cashsecurely. It is crucial to get expert advice beforebuying a safe as even the apparently most secureones are capable of being taken away without toomuch difficulty. Unless it is absolutely necessarynever keep large amounts of cash on the premisesovernight.

In buildings that are regularly used by differentgroups it is sensible to provide a lockable space foreach group to keep its own materials and equip-ment. This can avoid disputes about items disap-pearing from a communal storage area.

There is never enough storage in communitybuildings. If you are having a new building designeddouble the amount that your architect suggests.Have plenty of built-in cupboards and storagerooms. If you have a stage have storage containerson wheels made so that they can easily slide under-neath and do not take an huge effort to retrieve eachtime they are needed.

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Equipment leasing is an area often misunderstood byvoluntary management committees, and it is a com-mon cause of problems for community associationsif they find they cannot meet the lease payment – asdemonstrated in the cautionary tale. In some cir-cumstances this can mean that the officers whosigned the lease may find themselves personally li-able to thousands of pounds in settlement charges.

PhotocopiersThere are several ways of acquiring a photocopier. Itis always wise to do a considerable amount of marketresearch before committing your association. Hereare some of the things to look out for:• are you dealing with a manufacturer or a dealer-

ship? the difference is by no means always obvi-ous

• if it is not the manufacturer is it a reputable firm?• are you buying a machine on a lease purchase

agreement or simply renting? (in the former itwill one day be yours)

• does the agreement include service – parts andlabour?

• does the agreement include consumables – paper,toner etc.?

• does the price include all your copies or is there aseparate charge per copy?

• if there is an agreed copy count are extra copiescharged at the same rate or a higher rate?

• what is the duration of the agreement? is it pro-hibitive to change machines prior to its expiry? isit possible to cancel it entirely without a prohibi-tive penalty?

A lease is a binding legal agreement. In the case of aphotocopier lease, the agreement usually involvesthe association paying a quarterly charge for sixyears. The agreement will also include a service

element, where supplies and servicing are providedas part of the deal. The lease will sometimes becalled a ‘rental plan’, ‘service plan’ or ‘copy plan’.The terms of a lease can seem very attractive, andare often made to seem so by a persuasive sales pitchfrom the supplier. By taking out a lease, the associa-tion can afford to have a photocopier which it couldnot (it believes) afford to buy.

However, the association is taking out a longterm liability which it will have to honour. Thoughthe photocopier itself comes from a photocopiersupplier, once negotiated the lease will be managedby a finance company, who will strictly enforce theterms of the lease. The most onerous term is that, ifthe association defaults on any of the quarterly pay-ments, the whole of the unexpired portion of thelease becomes payable. If the association is unincor-porated, liability will fall on whoever signed thelease.

Shop around checking each of the questionsabove with several suppliers. Compare agreementswith manufacturers and dealerships.

In order to protect yourself and the association,take great care before signing an equipment lease.You must be clear about how much you will bepaying and what will happen if you cannot meet thelease payments. Would it be cheaper to wait anotheryear or two and save up to buy a piece of equipmentoutright, rather than leasing? Always read the smallprint and if in any doubt take legal advice beforesigning. Only then can you be satisfied that youhave done all you can to avoid the kind of disasterrelated in the cautionary tale.

For further information see Photocopier SellingPractices, published by the Office of Fair Trading(address on page 182).

RENTING OFFICE EQUIPMENT

FIRE FIGHTING EQUIPMENT AND ALARMS

The legal requirements of the fire regulations arecovered in chapter 7. Public buildings require a firecertificate from the local fire authority. In the proc-

ess of obtaining the certificate an inspection of yourbuilding will be made and the authority will giveyou a detailed description of the type, number and

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location of fire extinguishers that are required. Thiswill normally be given on a plan of the buildingwhich is eventually appended to the fire certificateitself. Full details of the legal requirements for firefighting equipment can be found in Fire Safety – anEmployer’s Guide, available from the Stationery Of-fice (address on page 182).

Although it is possible to buy and fit your ownappliances it is advisable to get an experienced firmto do it for you. Many companies will rent you theequipment or you can buy it outright. In either caseyou must make sure that you take out a maintenanceagreement. The firm will recharge and check allyour extinguishers on a regular basis. You will alsobe certain that the right appliance for the particularjob has been installed. Fires involving electricalequipment and flammable gases and liquids requiredifferent extinguishers, either of the carbon dioxideor dry powder variety, than other fires. Kitchensshould also have a fire blanket to smother fat fires aswell as non-water type extinguishers.

Deciding which company to choose can be diffi-cult. There is a tendency to believe that the large,well-known firms such as Chubb, Nu Swift andADT must be the best and the safest. This is notnecessarily the case. What is the case is that they areprobably the most expensive. You will find manysmaller and cheaper companies in Yellow Pages, andit is worth asking other local organisations who theyhave used. Many smaller companies will give you areliable and cheaper service. Before choosing a firmcheck the following:• that their engineers are qualified and members of

the Fire Extinguishers Trade Association(FETA)

• that the firm has public liability insurance atleast to the value of £5 million (ask for a copy ofthe insurance certificate)

• that all appliances supplied have the BritishStandard Kite Mark

The fire authority will also have given you detailsabout the kind of fire alarm required together withthe number and the siting of call points. Normally ithas to be installed with fire resistant cable and pow-ered with a secondary electricity supply in case themains are burnt out. You need a qualified electrician

to install it. It is both common sense and a statutoryrequirement that you test the alarm system regu-larly. It is advisable to make this the duty of oneperson and to make sure that it is done every week.It takes a minute or less but the alarms in manycommunity buildings are hardly ever tested. Test adifferent call point each week.

NOTICES, TRAINING AND FIRE DRILLSYou may have the best equipment and the bestalarm systems, but if the regular users of the buildingdo not know how to use them they will not be aseffective as they ought to be. The law requires thatnotices are displayed prominently, by each appli-ance and at other significant points, giving preciseinstructions on what to do in case of a fire. There aremany other notices available covering every aspectof fire safety. These range from bold signs indicatinga call point or an extinguisher to a simple recogni-tion chart for the different types of fire appliance. Itis well worth scanning a supplier’s catalogue andchoosing the appropriate ones for your centre. Signs& Labels Ltd produces a full range of notices for fireand other purposes. Their address is given at the endof the chapter.

Staff and other users of the building should begiven training and instruction in what to do if theydiscover a fire, including using the fire fightingequipment. Very clear information about the con-tent and regularity of such training is given in FireSafety – an Employer’s Guide.

A practice fire drill should be carried out at leastonce a year – more often in larger premises wherethe public regularly use the building. Vary the day ofthe drill so that different users are involved.

SECURITY ALARMSIncreasingly management committees of commu-nity buildings are considering fitting intruderalarms. There are many types on the market, andmost can be programmed for different areas of abuilding at different times. Some can be connectedto a central monitoring station (subject to inspec-tion by an independent inspectorate body), whichwill contact the police if the alarm is activated (butthis service will add to the cost). Ensure your

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supplier is a member of NACOSS – the NationalApproval Council for Security Systems. Alarmsmust conform to a number of British Standards andcodes of practice and will be identified by a ‘uniquereference number’, to ensure they have been ap-proved.

There will need to be at least two keyholders whocan be contacted by phone and are able to get to thebuilding within 20 minutes. Under the Local Au-thorities Act, 1991 you will need to give the localpolice the keyholders’ names, addresses and phonenumbers within 48 hours of having an alarm in-stalled (or taking over an existing system). You alsoneed to tell the local authority that you have had analarm installed and give them the address of thepolice station which has keyholder details. Yoursupplier should provide you with the appropriate

forms. The 1991 Act also requires that alarms mustbe fitted with a 20 minute cut off. Under the Metro-politan Police’s Intruder Alarm Policy, 1995, ifthere have been more than four false alarms in 12months police attendance may not be immediateuntil there have been three months free of falsealarms. Following seven false alarms in 12 months,police response will be withdrawn.

Before making a decision about having an alarminstalled you need to weigh up the cost of installa-tion and maintenance against the potential loss andthe possible reduction in insurance rates.

The crime prevention officer attached to thelocal police station will be more than willing to visityour building and give advice about security mat-ters, including intruder alarms.

EQUIPMENT FOR PLAYGROUPS

Attention to the safety of furniture and equipmentis an important factor generally when consideringwhat to buy for your community building. Whenequipping a playgroup it is essential. The ChildrenAct, 1989 sets out standards that have to be metbefore a playgroup can be registered. The standardscover much more than equipment and furniture ofcourse. If you are considering running a playgroup orother children’s activities it is advisable to get acopy of The Children Act, 1989: Guidance and Regu-lations Volume 2 – Family Support, Day Care andEducational Provision for Young Children. It is pub-lished by the Stationery Office and is not expensive.

Generally the following points apply:• equipment should be suitable to the ages and

stages of the children• where a British Standard exists, the equipment

and furniture should conform to it• the amount of equipment and furniture and their

quality and type should be adequate for thenumber of children attending the facility and theadults working there

• the organisation of the kitchen equipment mustcomply with environmental health regulations(see chapter 7)

KITCHEN EQUIPMENT

The equipment you buy for your kitchen will de-pend on how often it is used and for what purposes –e.g. whether you regularly serve light snacks andmeals or whether it is mainly used for tea and bis-cuits.

You must take account of the Food Safety (Gen-eral Food Hygiene) Regulations, 1995, the FoodSafety (Temperature Control) Regulations, 1995,

and the Food Premises (Registration) Regulations,1991. Further information about these is given inchapter 7 and your local environmental health de-partment will offer assistance as well as inspectingthe premises under the acts.

The regulations concentrate more on the sitingof equipment rather than type, but in general termsit is wise to buy commercial grade equipment as it is

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more durable and often easier to keep clean. Themain requirements for siting of kitchen equipmentare given in chapter 7.

As the temperatures for the storage of food arenow prescribed (see chapter 7) it is wise to have athermometer constantly available in the kitchenwith a notice setting out the legal requirements.

ELECTRICAL EQUIPMENT

It has always been sensible to have regular safetychecks on electrical equipment; it is now required.The Electricity at Work Regulations, 1989 requireprecautions to be taken against the risk of death orpersonal injury from electricity in work activities.Whether you have paid staff or not you employvolunteers and thus come under the regulations.The main steps you should take with all your electri-cal equipment are as follows:• ensure that existing electrical equipment is

sound and that it has been properly installed• ensure that any electrical work you have done is

carried out by competent electricians• seek advice on how to set up a maintenance

programme and a system to ensure that it is car-ried out; it will include:– regular testing of all wiring and electrical ap-

pliances, whether fixed or portable– labelling equipment once it has been tested

with a date and a date for the next test

– making a catalogue of all electrical equipmentand wiring

– having a written programme of testing with acentral record of tests carried out

• alert users of the building that they are requiredto comply with the regulations with regard toelectrical equipment that they bring on to thepremises

• consider putting a disclaimer about liability forelectrical equipment in your hiring agreement.Such a disclaimer does not absolve the commit-tee from checking equipment regularly broughton to the premises

• check whether a circuit breaker is required/advis-able for some items of electrical equipment (ask acompetent electrician or the environmentalhealth officer)The Health and Safety Executive has a free leaf-

let about the regulations: Electricity at Work: SafeWorking Practices.

COMPUTERS

WHAT COMPUTERS CAN DOMost voluntary organisations – whatever their

size – now use computers in their everyday work.Using different types of computer programs (soft-ware) it is possible to perform a wide range of taskssimply, effectively and efficiently. The following isthe standard range of things that you can use acomputer for:• word processing

– typing letters, reports etc., keeping copieselectronically

• mail merging– sending out large numbers of letters for fund

raising or marketing purposes; each letter canbe fully personalised

• desk top publishing– designing leaflets, posters, booklets and news-

letters to a designer standard, using either aword processing program or desktop publish-ing software

• accounting– doing an organisation’s accounts

• budgeting– using a spreadsheet program to help plan the

organisation’s financial future• databases

– storing and manipulating information, in-cluding names and addresses, staffing recordsand membership records

• on-line databases

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– access to outside information useful to yourorganisation’s needs

All these tasks can be performed simply and quicklyon a computer, once it has been set up properly andthe users trained.

FINDING THE RIGHT COMPUTERNeedless to say there is a host of equipment on themarket at widely different prices. This book cannottell you which will be best for you but it can give youbasic guidance on how to go about the job of choos-ing one:• do not be rushed: it is a cut-throat market and

you could end up with something that looks goodbut in fact has serious problems for your purposes

• discuss fully just what you want to achieve fromyour computer; involve the whole committee in

the discussion; the complexity and cost of thecomputer and the training necessary for its effec-tive use depends on what you require it for

• ask others in your field about their experiencewith computers: learn from their mistakes

• remember that you will need consultancy andtraining to get maximum benefit and to avoidendless frustration from not quite knowing howto do things, or put them right when they gowrong

• try and find a consultant who is familiar withvoluntary organisations

• compare prices and terms: it is a very competitivefield

• include virus checking software in your budget• make sure you get a proper maintenance and

service agreement

ELECTRONIC COMMUNICATION

More and more organisations are using electronicmail (e-mail) and the Internet and the World WideWeb for communication and information.

e-mail is a cheap, fast and convenient way ofsending messages from one person to another, orfrom one person to many people at the same cost.Messages are sent via the Internet – an electronicnetwork of computers, sited all over the world. Thecost is the same whether you send an e-mail toAustralia or to someone in your building, andwhether you write to one or one hundred people.

Using the Internet/World Wide Web is it possi-ble to access a vast amount of information – aboutother organisations, funding, your local authority,government programmes, campaigns, jobs – the listis endless.

Community organisations, once they are online(ie connected to the Internet) can play a key part inthe development of area-wide initiatives.

WHAT YOU NEED TO GET CONNECTEDTo get access to the Internet and use electronicmail, you need a computer, a modem, a telephoneline and an Internet Service Provider.

Most computers these days are sold with an inter-

nal modem already fitted, although it is also possibleto buy an external one. The higher the speed, thelower your phone bills. You do not need a separatetelephone line, but if you are ‘online’ – using e-mailor the World Wide Web – your telephone will beengaged.

As well as buying the equipment you need to signup with an Internet Service Provider. Many offerfree subscriptions and most don’t charge for the timeyou spend online. You will nearly always still haveto pay for your telephone calls – but in most casesthis will be the price of a local call.

For further information see Community Mattersinformation sheet 31 The Internet, the World WideWeb and Community Networking.

CONSULTANCY AND TRAININGComputers are highly complex machines. Whilethey can do all sorts of wondrous things for yourorganisation they can also cause a lot of headaches ifyou do not know what you are doing. Most of theheadaches can be avoided by getting expert advicefrom the outset. It will cost you money initially butin the long run it will be worth it. Many smallorganisations are tempted to save on initial consul-


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tancy. It is rarely a wise move.Training in the basic operations of the machine

as well as in the particular applications – word-processing, databases etc – is readily available. Manycourses are put on specifically for voluntary organi-sations. Your council for voluntary service or ruralcommunity council will know of the nearest one toyou. Remember to include the cost of training inyour computer budget.

WORKING CONDITIONS AND HEALTHMATTERSWorking on computers can cause ill health or aggra-vate existing health problems. Users can suffer fromeyestrain and a range of muscular problems, includ-ing backache and wrist, hand and neck pains, andrepetitive strain injuries (RSI) can develop fromdoing the same physical motions over and overagain.

The Health and Safety (Display Screen Equip-ment) Regulations, 1992 cover design ofworkstations, including screens, keyboards, chairsand desks, the working environment, task designand software. It must be possible to tilt screens andkeyboards, chairs must be stable and fully adjustable,footrests and document holders must be supplied ifrequired, and software should be designed oradapted to be user friendly. An employer must payfor eyesight tests for any VDU ‘user’ and tests shouldbe carried out regularly. All users must receive infor-mation and training on all aspects of use of theirworkstations. The definition of ‘user’ is quite restric-tive – you may want to pay for eye tests for all staffand volunteers who regularly use computers.

Work on computers must be interrupted bybreaks or changes of activity: short breaks of five toten minutes every 50-60 minutes are suggested asbeing more satisfactory than occasional longerbreaks.

Full details of the regulations are given in Healthand Safety (Display Screen Regulations), 1992: Guid-ance on Regulations, available from the StationeryOffice. The leaflet Working with VDUs is a usefulguide for people who work with VDUs, and theiremployers. It is available, free, from HSE Books, andcan be printed off from their web sitewww.hse.gov.uk/pubns.

DATA PROTECTIONThe Data Protection Act, 1998 is concerned with‘personal data’, ie information about living, identifi-able individuals. The 1998 Act is more wide rangingthan the 1994 Act, and covers all such personal dataheld on a computer – even if it is just names andaddresses – and also applies to manual records. Al-though many existing activities don’t have to com-ply fully until 23 October 2001 any informationsystem set up after 23 October 1998 must complyimmediately. For further details see chapter 7.

Publishers’ addresses can be found on page 180.

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CHECKLIST OF FURNITURE AND EQUIPMENT FOR COMMUNITY BUILDINGS

* see chapter 7


Furnishing and GeneralEquipmentCurtains, fittings and pelmetsStacking chairsChair trolleyUpholstered chairs (for clubrooms or lounge)Tables (folding or stacking)Card tablesLamp shades, light fittings anddiffusersFitted carpets / carpet tilesFloor tiles or vinylFireguardsClothes racks, pegsWaste paper binsWall clockMirrorsPictures and postersAsh trays – table and floorCoffee tablesFirst aid equipmentFire extinguishing equipmentNotice boardsExit noticesFolding steps, laddersTea trays, trolleysStorage shelvingLeaflet rack

Kitchen EquipmentCooker, gas or electricBoiling ringSink water heaterImmersion heaterKettlesTea urn and tea potsCups and saucersSugar basins and milk jugsPlates and dishesTumblers and wine glassesLarge jugsCutleryTable cloths

SaucepansCrockery cupboardsFood cabinetsKitchen chairs, tables, stoolsRefrigerator/freezerSwing binMicrowave oven

StageCurtains, curtain ropes, fittingsSpotlights, floodlights, dimmersBackclothFlats (for permanent sets)Drop curtainPortable stagingLighting boardsSteps to platform

PlaygroupSmall tables and chairsProtective matsSafety socket coversUnbreakable beakersSand trayWater tray

DisabilityBraille signsInduction loops (fitted andportable)Ramps

Cleaning and LavatoryEquipmentBuckets – ordinary and mopPolishing and wet mopsVacuum cleaner and polisherDeck scrubbing brush, ordinaryscrubbing brushes, squeegees andwash leathersHard and soft brooms, widebroomDusters, dustpan and brushTea towels, washing-up materials

MirrorsTowels – continuous towelholders, roller towel holders, hotair hand dryersFormica shelvingLavatory brushes and containersLavatory paper holdersSanitary towel disposal unit

Heating (other than permanentheating system)Gas fires or convectorsElectric heaters or radiators;infra red radiantsFire guards and pegs to securethemStorage for fuel

Activities EquipmentPianoMicrophone, amplifier andspeakersDisco equipment (Don’t forgetthe licence.)*Record, tape, CD playerSlide projector, stand and screenTV, radio, video (Don’t forgetthe licence)*Games equipment: darts; tabletennis; badminton; snooker;cards; dominoes; carpet bowls;swing-ball etc.Gymnasium equipment – judomats etc.Bingo equipmentOutdoor games equipmentStorage space

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FURNITURE AND EQUIPMENT CHECKLIST

Has your organisation carried out thefollowing tasks?• carried out a review of your furniture and

equipment needs• developed a policy of buying attractive,

comfortable and durable furniture andequipment that suit the needs of your users

• discovered the best sources for yourpurchases

• satisfied yourself that storage provision is asgood as it could be for your particularcentre

• checked and double checked any leasingarrangements on equipment before signing

• checked that you have efficient and costeffective fire-fighting equipment withsuitable arrangements for maintenance,training and sign-posting

• thought about installing a security alarmsystem

• ensured that the equipment and furnitureand other arrangements for child-carefacilities comply with the Children Act, 1989

• ensured that your kitchen equipment andarrangements comply with the FoodHygiene Regulations, 1970 and 1990, theFood Safety Act, 1990, the Food Safety(General Food Hygiene) Regulations, 1995and the Food Safety (TemperatureControl) Regulations, 1995

• undertaken a review of your arrangementsfor ensuring that all electrical wiring andappliances are safe and conform to theElectricity at Work Regulations, 1989

• considered how computers can helpimprove the operation of your communitybuilding


OfficeDesk and chairsTypewriter/word processorPhotocopier/duplicatorFiling cabinetLocking cupboardSafeCard index

Filing traysKey cupboardAnswerphoneFax machine

OutdoorFoot scrapers and door matsDustbins (separated for recy-cling)

LightsNotice boardsShed, gardening tools and lawnmowerCycle racks and dog hitchesPlay structures with protectiveflooringRails for people with disabilities

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USEFUL ADDRESSES

ACRE(Action with Communities inRural England)Somerford CourtSomerford RoadGloucestershireGL7 1TW



Centre for AccessibleEnvironmentsNutmeg House60 Gainsford StreetLondon SE1 2NY


web site www.cae.org.uk




web site



☎ 020 7226 0189e-mail

[email protected]

web site


Computercraft25 Bruges PlaceRandolph StreetLondon NW1 0TF

☎ 020 7284 6980e-mail

[email protected]

web site www.computercraft.co.uk




Gopak LtdRange RoadHytheKent CT21 6HG


web site www.gopak.co.uk

Data Protection CommissionerWycliffe HouseWater LaneWilmslowCheshire SK9 5AF

☎ 01625 545700web site www.dataprotection.gov.uk



web site www.volunteering.org.uk

Signs and Labels LtdDouglas Bruce HouseCorrie CloseBredbury Industrial ParkStockportCheshire SK6 2RR


web site www.safetyshop.co.uk

FURTHER READING

Access Publications Listspublished by the Centre forAccessible Environments

In addition to a comprehensiveset of publications and informa-tion sheets on access for peoplewith disabilities, the Centre for

Accessible Environments has anArchitectural Advisory Service –a database of architects andother practitioners with experi-ence of designing for people withdisabilities

The Children Act, 1989:Guidance and RegulationsVolume 2 – Family Support,Day Care and EducationalProvision for Young Childrenpublished by the StationeryOffice

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CommunityNewsletter published byCommunity Matters

Computanewspublished by LASA

Computanews is a bimonthlynewsletter for advice andinformation workers and othersin the voluntary sector. LASAalso publishes factsheets onvarious aspects of computing:

• Buying IT• Data Protection• E-services: the Voluntary

Sector Goes Online• Getting Connected – the

Internet and all that• Health and Safety• Managing IT

Electricity at Work: SafeWorking Practicespublished by the Health andSafety Executive

Fire Safety – an Employer’sGuidepublished by the StationeryOffice

Food Safety and Food Hygiene –Information Sheet 11published by CommunityMatters

Furnishing and Equipment in aCommunity Centre –Information Sheet 35published by CommunityMatters

Photocopier Selling Practicespublished by the Office of FairTrading

RSI – a Trade Unionist’s Guidepublished by Labour ResearchDepartment

Upper Limb Disorders –Assessing the Riskpublished by the Health andSafety Executive

Working Safely with VDUspublished by Labour ResearchDepartment

Working with VDUspublished by the Health andSafety Executive

VDUs: an Easy Guide to theRegulationspublished by the Health andSafety Executive

VDUs and Health and Safety –a User’s Guidepublished by Labour ResearchDepartment

The acts of parliament andregulations referred to are allavailable from the StationeryOffice


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Rules andrelationships

10101010101010101010101010101010101010101010101010101010

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RULES & RELATIONSHIPS

INTRODUCTION

This chapter is about how you handle yourselves asmanagers of your community building and how, inturn, you expect staff and users to handle them-selves. The standards of behaviour expected of peo-ple in your centre need to be clearly set out invarious documents.

You will need a set of rules for all who use thebuilding and a hiring agreement for groups and indi-viduals who hire the building or rooms within it,whether on an occasional or regular basis. You willneed an equal opportunities policy document withprocedures for behaviour and action. This will en-sure that everyone in the community is not onlywelcome but is able to benefit from that welcome in

practical ways – in other words a policy that ensuresno one is discriminated against. Part of the equalopportunities policy will be a code of conduct whichsets out how people are expected to treat all otherusers of the building. Finally it is important to havea clear disciplinary procedure setting out the stand-ards of behaviour, apart from equal opportunitiesconsiderations, expected within the building andthe procedures to deal with members whose behav-iour is unacceptable.

This chapter discusses these matters and givessample documents that you may find useful to adaptfor your own purposes.

RULES GOVERNING THE USE OF THE BUILDING

Everyone is governed by rules. Many of them arewritten down – the laws of the land, the proceduresfor using public amenities; and many are unwritten– rules of behaviour at home. The unwritten oneswork well when there is regular communicationbetween a small group of people who know eachother. A community building is open to all sorts ofdifferent groups of people and, if it is successful, willhave large numbers of people using its facilities. Allmanner of disputes and difficulties can occur if thereis no basic set of rules governing conduct and behav-iour.

Community Matters has developed a model setof rules based on its many years of experience cover-ing most of the situations that are found in commu-nity buildings of one kind and another. These in-clude matters relating to licences, fire regulationsand insurance covered in other chapters of Manag-ing Your Community Building.

As with everything else in this book, it is impor-tant to put your own stamp on the rules and not justadopt them as set out, without detailed considera-

tion of whether they suit all your particular needs.It is the General Committee or Management

Committee which usually has the power to makerules governing the use of a community building.The committee should also ensure that the rules arewidely known and that they are a condition of use ofthe building. A copy should be prominently dis-played on the premises. A copy should be sent toeach hirer, section and affiliated organisation.

The sale and consumption of alcohol in a com-munity building is a complex matter. This is coveredin more detail in chapter 7. Your building will be inone of three categories: there might be restrictivecovenants in your lease or constitution preventingthe sale of alcohol altogether; you may sell alcoholoccasionally or regularly with or without a perma-nent bar area in the building; or you may have alicensed bar or social club. In the set of rules thatfollow it is assumed you make occasional sales only.You will have to adapt rule 8 to the particular termsof the licence if you have a licensed bar or socialclub.

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GENERAL RULES GOVERNING THE USE OF THECOMMUNITY CENTRE

Preamble

The management of the Community Centre isvested in the General Committee1 of theCommunity Association, whose powers andcomposition are defined in the constitution, acopy of which may be obtained from/consultedat2 . Under theprovisions of the constitution, the GeneralCommittee is empowered to make rules, or towithdraw or amend them.

1 Use of the Centre

Use of the Community Centre and its facilitiesis subject to the following rules and, in the caseof hirers, to certain standard conditionsincorporated in the hiring agreement.

2 Equal Opportunities

The Community Centre shall be open to allmembers of the community regardless of race,gender, sexual orientation, age, disability,religious or political beliefs or marital status.

3 Applying to Use the Centre

a) Application for use of the Centre shall bemade to the CA Secretary.3

b) The right to refuse any application for theuse of Centre facilities is reserved to theGeneral Committee, or the Secretary, providedthat the Secretary reports his/her action to thenext meeting of the General Committee. TheGeneral Committee may refuse an applicationto use the Centre’s facilities if the use by aparticular organisation or individual presents arisk of public disorder or of alienating theAssociation’s beneficiaries or supporters.

c) All arrangements for the use of Centrefacilities are subject to the Association reservingthe right to cancel bookings when the premisesare required for use as a Polling Station or arerendered unfit for the intended use.

d) Sections and affiliated groups of theAssociation shall normally have priority use ofits facilities, but all arrangements to hirefacilities made with outside bodies andindividuals shall be honoured by theAssociation, except as provided for in (c)above.

4 Hours of Opening

Facilities at the Community Centre arenormally available for the use of its membersand of outside hirers between the hours of

and on weekdays,4 andand on Sundays. In

exceptional cases, these hours may be extendedon application to the General Committee.

5 Maximum Capacity

The Centre hall has a maximum capacity ofseated or dancing (these

figures include helpers and performers), and onno account shall these figures be exceeded.5

6 Safety Requirements

All conditions attached to the granting of theCentre’s Public Entertainments Licence, stageplay or other licences shall be strictly observed.Nothing shall be done which will endanger theusers of the building, and the policies ofinsurance relating to it and to its contents. Inparticular:a) obstructions must not be placed in gangwaysor exits, nor in front of emergency exits, whichmust be immediately available for free publicegress;b) the emergency lighting supply must beturned on during the whole time the premisesare occupied, and must illuminate all exit signsand routes.6

c) fire-fighting apparatus shall be kept in itsproper place and only used for its intendedpurpose;


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8 Intoxicating Liquor7

No intoxicating liquors are permitted to bebought, sold or consumed on any part of thepremises without the express permission inwriting of the General Committee, whoseconsent must also be obtained prior toseeking any Occasional Licence orPermission for the sale of alcoholic liquor.

9 Betting, Gaming and Lotteries8

Nothing shall be done on or in relation tothe premises in contravention of the lawrelating to betting, gaming and lotteries, andthe persons or organisations responsible forfunctions held in the Centre premises shallensure that the requirements of the relevantlegislation are strictly observed.

10 Stage Plays9

The Association Secretary must be given atleast four weeks’ notice of a stage playproduction, so that the appropriate licencemay be obtained from the local council,which itself requires three weeks’ notice.

11 Recorded Music Licence

It is the responsibility of any independentuser group which uses recorded music in itsactivities to check if it requires a licencefrom Phonographic Performances Ltd (PPL)and, if so, to obtain one.

12 Storage

The permission of the General Committeemust be obtained before goods or equipmentare left or stored at the Community Centre,except that the Secretary is authorised togrant permission for the overnight storage ofgoods and equipment brought to the Centrefor a particular function or event.

13 Loss of Property

The Association cannot accept responsibilityfor damage to, or the loss or theft of, Centreusers’ property and effects.


d) the Fire Brigade shall be called to anyoutbreak of fire, however slight, and details ofthe occurrence shall be given to the AssociationSecretary;e) performances involving danger to the publicshall not be given;f) highly flammable substances shall not bebrought into, or used, in any part of thepremises. No internal decorations of acombustible nature (e.g.: polystyrene, cotton,etc.) shall be undertaken or erected without theconsent of the General Committee;g) no unauthorised heating appliances shall beused on the premises;h) the First Aid box shall be readily available toall users of the premises. It is locatedin . TheAssociation Secretary shall be informed of anyaccident or injury occurring on the premises.i) all electrical equipment brought into thebuilding shall comply with the Electricity atWork Regulations, 1989. The ManagementCommittee disclaims all responsibility for allclaims and costs arising out of any suchequipment that does not so comply.

7 Supervision

The hirer or person in charge of the activityshall not be under 18 years of age and shall beon the premises for the entire period of hire, orduration of the activity. The person in chargeshall not be engaged in any duties whichprevent him/her from exercising generalsupervision.

When the premises or any part of them are usedfor the purpose of public entertainment, thereshall be a minimum of two persons, neither ofwhom shall be less than 18 years of age, on duty.

All persons in charge or on duty shall have beeninformed of the procedure for evacuation of thepremises and shall be familiar with the fire-fighting equipment available.

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14 Car Parking

Cars shall not be parked so as to cause anobstruction at the entrance to, or exits from, theCentre. Where parking accommodation isprovided and available, this must be used, andin any case users of the Centre should avoidundue noise on arrival and departure.

15 Nuisance

a) Litter shall not be left in or about the Centrepremises.b) Except in the case of trained guide-dogs forthe blind, dogs shall only be permitted on theCentre premises in connection with organisedactivities such as dog training or dog shows.c) Hirers and organisers of events in theCommunity Centre are responsible for ensuringthat the noise level of their functions is notsuch as to interfere with other activities withinthe building nor to cause inconvenience for theoccupiers of nearby houses and property.

16 Cleaning and Security

All use of Centre premises and facilities issubject to the users or hirers acceptingresponsibility for returning furniture andequipment to their original position, and forsecuring doors and windows of the premises asdirected by the Association Secretary. All usersshall also leave the premises and surrounds in a

clean and tidy condition, as may be directed bythe Association Secretary.

Notes

1 The main committee of the CA. If yours is called bya different name, such as “Council” or “ManagementCommittee”, amend the rules accordingly.

2 Delete one alternative and complete sentence to suityour own requirements.

3 If appropriate, replace with “Warden” or “LettingsSecretary” here and in later references to the CASecretary.

4 If later closing is allowed on Saturdays, it will benecessary to add to this rule.

5 If there are other large rooms in your Centre subjectto Fire Regulation maximum attendance figures, itwill be necessary to add to the rules to define theseclearly for each room.

6 This rule is not strictly necessary where an automaticmains failure switching device is in operation.

7 It may be there are restrictive covenants on yourbuilding, preventing the sale and consumption ofalcohol on the premises. If so, rule 7 will have to bereplaced with ones prohibiting drinking in theCentre.

8 If restrictive covenants prevent gaming on theCentre premises, this rule should be replaced withone which simply prohibits such activities.

9 This rule is unnecessary if your Centre has a currentlicence under the Theatres Act, 1968.


Hiring out your building (or parts of it) is a usefulway of raising funds and providing a service for thecommunity. It is, however, important to rememberthat every time you hire out your premises you areentering into a business contract. Terms of hiremust be clearly set out - usually in a standard hiringagreement with conditions of hire attached (Com-munity Matters produces a model hiring agreementand conditions of hire). Ensure the hirer reads theterms of the agreement before signing and that bothparties sign, and retain a copy.

HIRING OUT YOUR BUILDING

A number of points need to be considered whenhiring out premises: complying with the law; secu-rity; safety; and retaining control. It is also impor-tant to check whether there are any restrictions inyour lease or licence, for example relating to playingmusic or serving alcohol. Legislation to considerincludes licensing laws (if alcohol is to be sold);planning laws (for example there may be a timelimit on use of the building); and noise limits (underthe Environmental Protection Act, 1990).

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MODEL HIRING AGREEMENT AND STANDARDCONDITIONS OF HIRE FOR A COMMUNITY BUILDING


Hiring Agreement for Community Building

THIS AGREEMENT is made on day, 20 , between theCommunity Association, hereinafter called the Association, and the Hirer named below whereby inconsideration of the sum(s)mentioned in paragraph 4 below:

A THE ASSOCIATION agrees to permit the Hirer to use that part of the premises designated inparagraph 3 for the purposes, period(s) and at the fee described below, namely:

1 Purpose of Hiring

2 Period of HiringDate(s) Hours from to

3 Description of room(s)

and facilities to be hired

4 Hiring Fee £

Less deposit received £

Balance £ payable on or before

5 The Association’s authorised official:

Address

Telephone No

B THE HIRER agrees to observe and perform the provisions and stipulations contained or referredto in the Association’s Standard Conditions of Hire for the time being in force and as annexedhereto, and in the Rules governing the use of the Community Centre.

6 HirerOrganisation (if applicable)

Name of individual hirer or organisation’s authorised representative:

Address

Telephone No

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THE COMMUNITY ASSOCIATION

Standard Conditions of Hire of the Community Centre


7 THE HIRER shall be responsible for makingarrangements to insure against any third partyclaims which may lie against his/her organisationwhilst using the community centre. (TheAssociation is insured against any claims arisingout of its own negligence.)

8 THE HIRER shall be responsible for theobservance of all regulations appertaining to thepremises stipulated by the Licensing Justices, theFire Authority in accordance with Rule 4, theLocal Authority or otherwise.

9 THE HIRER shall not sub-let or use the premisesfor any unlawful purpose or in any unlawful waynor do anything or bring on to the premisesanything which may endanger the premises, theirusers, or any insurance policies relating thereto.

10 THE HIRER shall indemnify the Association forthe cost of repair of any damage done to any partof the property including the curtilage thereof orthe contents of the building during or as a resultof a booking.

11 THE HIRER shall, if selling goods on the centrepremises, comply with Fair Trading Laws and anylocal code of practice issued in connection withsuch sales. In particular, the Hirer shall ensurethat the total prices of all goods and services areprominently displayed, as shall be the organiser’sname and address, and that any discounts offeredare based only on Manufacturers’ RecommendedRetail Prices.

1 THE HIRER shall pay as deposit at least one thirdof the cost of his or her booking. Such deposit shallnormally only be refundable to the Hirer in theevent of the Association cancelling the bookingin pursuance of Rule 3 c.

2 THE HIRER shall pay the balance of fees duebefore the conclusion of the booking, as may bedirected by the Association Secretary. If theHirer wishes to cancel the booking and theAssociation is unable to conclude a replacementbooking, the question of the repayment of thefees (less the deposit) shall be in the discretion ofthe Community Association. In the event of theAssociation cancelling the booking inaccordance with rule 3 c, all fees (including thedeposit) paid by the Hirer shall be refunded tohim/her.

3 THE HIRER shall ensure that the General Rulesgoverning the use of the Community Centre, assupplied to him/her, are complied with.

4 THE HIRER shall, on making the booking,inform the Association Secretary of his/herrequirements as to the provision of refreshmentsor of canteen facilities, and shall be responsiblefor any extra charges thereby incurred.

5 THE HIRER shall, during the period of hiring,be responsible for supervision of the premises,protection of the fabric and contents, safety fromdamage however slight, or change of any sort,and the behaviour of all persons using thepremises whatever their capacity, includingproper supervision of car-parking arrangements soas to avoid obstruction of the highway.

6 THE HIRER shall be responsible for obtainingany licences necessary in connection with thebooking, other than those already held by theAssociation.

Signed by the person named in paragraph 6 of thehiring agreement, on behalf of the hiringorganisation:

AS WITNESS the hands of the parties hereto:

Signed by the person named in paragraph 5 of thehiring agreement, on behalf of the Association

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Equal opportunities for staff has been covered inchapter 3, but equal opportunities does not stopthere. Everyone connected with the communitybuilding, whether staff, committee members, volun-teers, users or visitors, has a right to be treatedequally and fairly.

At heart the majority of the British people aregenerous to their fellows and do not intend to dis-criminate or exclude anyone. In practice, however,years of doing things in a particular way has blindedus and in fact we all have prejudices against varioussections of the community. It is these prejudices, ofwhich we are often unaware, that lead to the consid-erable inequalities in terms of attitude and treat-ment of different groups in society.

All sorts of people are discriminated against: peo-ple from ethnic minorities; women; older people;homosexuals; disabled people; HIV+ive people;young people and many more.

A written policy and monitoring procedure areessential to change these inequalities.

An equal opportunities policy cannot instantlychange how people think and feel deep down, but itcan change how they are required to relate witheach other and it can change how people aretreated. Ultimately the process of evolving and im-plementing an equal opportunities policy, with thehigh level of discussion and training that is essen-tial, will also have a significant effect on beliefs andattitudes.

DEVELOPING THE POLICYIt is important to stress again the need to see the jobof developing an equal opportunities programme asa process that involves everyone concerned with thecommunity building. Only in opening up issues ofprejudice and discrimination to widespread discus-sion will people become aware of how others thinkand how difficult it can be to be a victim of discrimi-nation. The discussion will not always be easy as itwill also involve people becoming aware of theirown prejudices.

Learn from what others have done before you butmake sure that your policy is uniquely yours and

applies to the particular circumstances of your or-ganisation and your community.

Have lots of open discussions about all aspects ofequal opportunities. A useful and common practiceis to have a sub-committee, meeting for the durationof the process, to co-ordinate it all and to put theoutcome of the discussions into the appropriatewording for your policy document.

EQUAL OPPORTUNITIES POLICYDOCUMENTSThe equal opportunities policy documents willeventually comprise your statement of intent, a sec-tion on the objectives of the policy, and a code ofpractice containing detailed measures that will en-sure the implementation of the policy. It will alsocontain a code of conduct and a mechanism formonitoring and reviewing the policy and its imple-mentation.

STATEMENT OF INTENTThe first actual policy document you should pro-duce is a statement of intent. This is a simple sum-mary statement saying that you aim to be an equalopportunities organisation and that it is your policynot to discriminate against anybody, (whether staff,volunteers, committee members, users and the com-munity in general) on the grounds, for instance, ofrace, gender, sexual orientation, age, disability, reli-gious or political beliefs, or marital status. The state-ment of intent should also state that a more detailedpolicy on equal opportunities is being prepared andcodes of practice and conduct are being developedwhich will contain measures to implement thepolicy.

Your statement of intent should be prominentlydisplayed in the building and sent out with appro-priate correspondence. All users of the buildingshould be made aware of it. Committee membersand staff, whether paid or voluntary, should havecopies.

EQUAL OPPORTUNITIES


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EQUAL OPPORTUNITIES POLICYOBJECTIVESOnce again the objectives of your policy will beuniquely yours, reflecting the community which youserve and the people involved with and the circum-stances of your particular organisation. Thus thefollowing list is only to be seen as a prompt:• to ensure that no user, potential user, committee

member, volunteer or member of staff is treatedless favourably than others

• to ensure that everyone concerned with the com-munity building understands the issues surround-ing discrimination

• to increase the numbers of users from tradition-ally disadvantaged groups

• to ensure that the committee and all decisionmaking structures contain people from all sec-tions of the community

• to ensure that all staff are recruited, and if appro-priate, promoted on merit regardless of back-ground and other traditionally discriminatoryfactors

• to ensure that all is done to make the premisesaccessible and welcoming to all sections of thecommunity

• to ensure that services are provided that reflectthe needs of all sections of the community

• to consider special projects to combat discrimi-nation in the community outside the building

IMPLEMENTING THE POLICYIt is possible to have a perfect written policy, patyourselves on the back for all the hard work indeveloping it but then put it in the file and forget it.Implementing the policy is when it starts hurting asyou will have to face difficult issues, for example:disciplining someone for making racist jokes andoffending someone; spending money on adaptingthe building so that people with disabilities can getin; ending the male domination of the decisionmaking process.

To make your community building truly open toall there are many practical things that need to bedone:• develop a procedure, or code of conduct, for deal-

ing with instances of discrimination and abuse

• develop a code of practice containing detailedmeasures to ensure implementation of the policy;these measures should cover:– your activities and services– the way your organisation is managed, who is

involved and how people become involved– how you recruit and support volunteers– the way in which you appoint staff and their

conditions of employment• publish the equal opportunities policy to all peo-

ple concerned with the building• make compliance with the policy a condition of

hiring rooms• make acceptance of the policy a condition of

service of all staff. Make it a duty of all staff,written into their contract of employment, thatthey explain the policy to users and, where nec-essary, insist on it within the premises and theorganisation’s activities

• organise a series of training events in aspects ofequal opportunities practice for committee mem-bers, staff and volunteers: try, at least, to coverequal opportunities awareness, and equal oppor-tunities recruitment if you employ staff and/orvolunteers

• make sure that all publicity material and noticescan be read by everyone in the community byhaving versions in the main languages of yourparticular community; if necessary interpretersand signers should be available at communitymeetings

• undertake a review of the premises and produce aschedule of alterations and adaptations requiredto enable people with disabilities to join in theactivities; this will include ramps and handrails,lavatories suitable for people with disabilities,Braille door signs, induction loops for hearingimpaired people, a place to park push-chairs, aspace and facilities for a creche and guide rails forblind and visually impaired people

• regularly check the make up of the committee(s)and take steps, wherever it is possible, to changethe membership to ensure a balance of all thedifferent groups within the community; do notforget the officers!


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• make sure that your canteen caters for the vari-ous different cultures in the community

• ensure that publicity material and posters do notportray people in traditional one-culture stereo-types: ie be sure to have pictures of women doing‘men’s’ jobs and vice versa; make sure that thereare images of peoples of all different ethnic back-grounds and ages

• establish an equal opportunities monitoringCommittee to check that everything that wasagreed to be done is being done and to changeand develop the policy as experience determines

EQUAL OPPORTUNITIES CODE OFCONDUCTCommunity Matters has a Code of Conduct forequal opportunities that makes quite clear how itexpects relationships within the organisation to begoverned and sets out a procedure for those contra-vening it. Community Matters, in the implementa-tion section of its own equal opportunities policyundertakes to urge all member organisations toadopt the Code of Conduct.

POSITIVE ACTIONIn the recent history of the development of equalopportunities practice two phrases have emerged todescribe action to compensate for past and presentdiscrimination. The first is ‘positive discrimination’and the second is ‘positive action’.

Positive discrimination is illegal although oftenwell intentioned. It means reversing discrimination.Thus jobs would be given to, for example, blackpeople rather than white regardless of ability to dothe job. The thinking is that if it was once alright todo this for white people then only by reversing thediscrimination will the balance be redressed and afairer society emerge.

Positive action is quite different. It means pro-viding services that recognise and develop potentialin people which has not been used because of dis-crimination. The services might be opportunitiesand training for people from disadvantaged groupsto help fit them for particular work or voluntaryresponsibilities so that they can compete equallywith other candidates.

MODEL CODE OF CONDUCT• People will be treated with dignity and respect regard-

less of race, nationality, gender, sexual orientation,disability and age.

• At all times people’s feelings will be valued and re-spected. Language or humour that people find offen-sive will not be used, eg sexist or racist jokes orterminology that is derogatory to someone with adisability.

• No one will be harassed, abused or intimidated on thegrounds of their race, sex, age, nationality or sexualorientation. Incidents of harassment will be treatedseriously. If the matter cannot be resolved by way ofan acceptable apology and an undertaking that theoffence will not be repeated, the following action willbe taken:– in a case involving staff, disciplinary action will

be taken according to the procedure outlined intheir conditions of service;

– in a case involving a member of the communityorganisation, he or she shall be suspended frommembership until such time as he or she can appear before the Committee in accordance with theconstitution or established procedures.*

* The Community Matters’ model constitution for a com-munity association (see chapter 2), provides for suspension ofmembers who offend against the organisation’s objects andpolicy, as should any good constitution for an organisationrunning a community building.


Positive action is about taking steps to ensurethat people from disadvantaged groups have accessto all the facilities and services of the society theylive in.

Go back to your list of equal opportunities objec-tives and the list of practical actions to be taken.Achieving these steps towards equal opportunities ispositive action.

STANDARDS OF BEHAVIOUR ANDDISCIPLINARY PROCEDURESBehaviour can be offensive in many ways, regardlessof equal opportunities and it is important to havewritten statements of the kind of behaviour that isexpected and of what action will be taken if these

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standards are not adhered to. Offence can be giventhrough language, noise or physical violence both toproperty and people. If someone is alleged to havebehaved in an unacceptable way there needs to be aclear and fair way which determines the facts of thecase and the action that will be taken. The organisa-tion and the alleged offender both have rights to beheard openly, fairly, and quickly. The procedure forthis is sometimes called a disciplinary and grievanceprocedure and is similar to the ones used for dealingwith paid staff (see pages 46 and 47).

You will need to draw up your own code of be-haviour and disciplinary procedure. It could besomething like the one opposite, suitably adapted toyour own circumstances.

CODE OF BEHAVIOURAND DISCIPLINARY

PROCEDUREThe CommunityOrganisation expects a high level of goodconduct from its members and other users.Everyone deserves respect and to be able toenjoy the peace, friendship and facilities ofthe Centre without disturbance. Membersand users are therefore required to refrainfrom offensive behaviour, offensive language,and loud and unruly behaviour. Membersand other users will respect the premises,avoid damage to property and unnecessarymess.In the event of a complaint being madeagainst a member or other user forcontravention of the above standards ofbehaviour the following steps shall be takento resolve the dispute:

• the alleged offender shall be suspendedfrom the centre pending a hearing by thecommittee or a sub-committee appointedfor such a purpose

• the secretary shall call a meeting of thecommittee or sub-committee within sevendays of receiving a complaint

• written notice of the alleged offence andthe time and date of the hearing by thecommittee shall be given to the allegedoffender

• the alleged offender shall be allowed tohave a friend present at the hearing

• the alleged offender shall be allowed tocall witnesses to the hearing

• no member of the committee or sub-committee hearing the case shall be aparty to or witness of the alleged incident

• the alleged offender shall have the rightto an appeal to an independent arbitrator,acceptable to both sides of the dispute

• the decision of the independent arbitratorshall be final.


RULES AND RELATIONSHIPSCHECKLIST

Has your organisation carried out the following tasks:• agreed a proper set of rules for the building• produced a hiring agreement for lettings• produced a set of conditions of hire for lettings• developed an equal opportunities policy with:

– a statement of intent– policy objectives– a code of practice– a code of conduct

• set up a monitoring and review sub-committee tocheck that the equal opportunities policy is in factbeing implemented

• established a programme of positive action forsections of the community which are regularly facedwith discrimination

• arranged discussions and training on equalopportunities awareness

• produced a code of behaviour and disciplinaryprocedure

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USEFUL ADDRESSES

Commission for Racial EqualityElliot House10-12 Allington StreetLondon SW1E 5EH


web site www.cre.gov.uk




web site



☎ 020 7226 0189e-mail

[email protected]

web site





RADAR12 City Forum250 City RoadLondon EC1V 8AF


web site www.radar.org.uk

Royal National Institute for theBlind (RNIB)224 Great Portland StreetLondon W1N 6AA

☎ 020 7388 1266

☎ 0345 669999 (helpline)e-mail [email protected]

web site www.rnib.org.uk

Royal National Institute forDeaf People (RNID)19-23 Featherstone StreetLondon EC1Y 8SL

☎ 020 7296 8119

☎ 0870 6050 123(helpline – voice)

☎ 0870 6033 007(helpline – text)e-mail [email protected]

web site www.rnid.org.uk

FURTHER READING

Emphasize the Positivepublished by CommunityMatters

Equal Opportunities inVoluntary Organisationspublished by the NationalCouncil for VoluntaryOrganisations

Equal Opportunities– Informa-tion Sheet 19published by CommunityMatters

Just About Managing?published by London VoluntaryService Council

Terminology for Race andEqual Opportunities Work –Information Sheet 25published by CommunityMatters


Also see the reading list forchapter 3 - Staffing


171

Reaching out11111111111111111111111111111111111111111111111111111111

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REACHING OUT

INTRODUCTION

One of Community Matters’ objectives is “to en-courage community organisations to be more outwardlooking, to become more aware of of social needs in theircommunity, to initiate activities to meet those needsthrough a community development approach”.

An assumption of this book is that the managersof most community buildings believe that they areopen to all in their neighbourhood: they have aphilosophy of a welcome for everyone. Indeed thevast majority of community buildings have as one oftheir formal aims the intention of providing servicesthat are open to all the community. Even those thatare more specialised will want to recruit new mem-bers.

Does the reality match up to the theory? Actionsspeak louder than words and sometimes those ac-tions say, often unintentionally but neverthelessvery clearly, that in fact newcomers are not particu-larly welcome. The actions tend to speak especiallyloud to sections of the community who are different,in one way or another, from the majority of well-established building users. Current activities withinthe building tend to serve the needs of existingmembers and are sufficient and quite satisfactory –thank you!

You can also unintentionally give a message ofexclusion to people by a lack of provision of basicfacilities, for example no handrails for people withdisabilities or no induction loops to help hearingimpaired people feel more part of things.

Whether this is the case with your building orwhether, quite simply, you wish to improve thequality, range and relevance of your services but arenot quite sure how best to go about it, this chaptergives information and tips on how to reach out intothe community around your building in ways thatwill help you to respond to real and current localneeds.

As with everything else in a community building,reaching out is the responsibility of the committee.It is a fact of life with most community buildingcommittees that the membership changes fairlyregularly. New committee members will not nor-mally be as experienced as existing or retiring ones

in all the different aspects of managing the building.Thus one committee may be very keen on reachingout but its successor following the AGM may not. Itis therefore vital that the subject be on the commit-tee agenda as a regular item and that any trainingevents be repeated for new members.

REACHING OUT STARTS WITHINThere is a host of ways that an organisation canreach out into its local community in order to findout what people want and to attract more people toits building and services, but without a basic openattitude on the part of everyone already involved inthe centre, these methods will achieve very little.Just as charity begins at home so does reaching out.

What this means in practice is that everyone con-cerned with shaping the programme and running thebuilding should be committed to an open, welcomingapproach and exercise friendliness and courtesy in alltheir dealings with users of the building whether inperson or on the telephone. Aim for high standards inpresentation, administration and human communi-cation. Doing this puts you well on the way to devel-oping an image that is attractive to people.

ENHANCING YOUR IMAGEThis open and attractive image can and should bedeveloped still further in physical and organisa-tional ways as follows:• ensure that the building is well signposted and

advertised so people know that it exists and howto find it

• the reception area should be inviting and inter-esting

• notice boards, leaflets, letters and advertisementsshould be tidy, well presented and up-to-date

• publications must indicate that the centre catersfor people of different ages, gender and race; havesome publications available in languages otherthan English, that are used in your area

• the notice board should advertise events outsidethe building

• develop a basic approach to people that listens towhat they have to say and makes it clear that

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their contribution is valued• have a poster within the building displaying the

aims and objectives of the organisation and howit is managed

• have copies of your equal opportunities state-ment and code of conduct clearly displayed (seechapter 10)

• make sure the building is warm and welcomingand clean and tidy

• make sure the building is accessible to all includ-ing those with disabilities: this means consider-ing handrails, ramps, doors that accommodatewheelchairs, induction loops and direction andlocation signs with large characters which con-trast with the background

• have things clearly marked and signed, especiallyentrances, exits and facilities for people with dis-abilities

• have a rota of people to welcome visitors andnew members

• keep members informed of what is going on andencourage them to talk to their friends and getthem involved

• encourage young people with special events andactivities

• have crèche facilities so that people with chil-dren can easily participate

• always aim for a high standard in all your activi-ties

• always aim for as comprehensive a range of ac-tivities as possible – something to suit everyone

If you have adopted a basic approach of opennessand friendliness to everyone as exemplified in allthe practical ways listed above you will be muchmore than half way towards being able to reach outinto the community in more formal and organisedways.

Arriving at the basic approach will, however,take considerable discussion. It is very easy to writeabout it but much more difficult to achieve it inpractice. Perhaps you can have a special meeting orseries of meetings of the committee devoted specifi-cally to creating an open and welcoming image. Beprepared for difficulties and obstacles, even obsti-nacy: some people simply do not immediately wantto be generous to others and include them. Changecan be very uncomfortable and as you will see below,taking a thorough look at reaching out can havevery far reaching implications for change withinyour organisation and your community building.Once you have established the basic approach con-sider having reaching out as a regular item on theagenda of your committee meetings.

REACHING OUT

A REACHING OUT ACTION PLAN

Things do not just happen, even if you have hadsufficient discussion to get agreement on a basicimage and approach. Putting the approach intopractice requires careful planning and management.Again it might be very worthwhile to set up anothersub-committee or working party with the task ofdeveloping a reaching out action plan.

KEY ELEMENTS OF THE PLANClearly each reaching out action plan will be par-ticular to each community building and its localarea. Local communities differ considerably and so,therefore, will the plans to reach out into them.Whatever the differences of detail between variousplans may be, they will all need to ensure that

certain key elements are covered. They will all alsobenefit from seeing the creation of the plan as anon-going process that involves as many people aspossible as it evolves, and not just remaining theprovince of the sub-committee until it is complete.This ensures that changes in the organisation thatwill inevitably result from the implementation ofthe plan are effected as simply as possible sincepeople will be carried along as the process unfolds.

The key elements that any reaching out actionplan will need to include are as follows:• a clear statement of objectives of reaching out;

these will include some or all of the followingand maybe a few more of your own:– increased membership/attendance

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– development of new, more relevant activities– involvement in community issues and activi

ties and not just activities within the building– response to changes in composition and

economy of your community• a programme for consulting with and involving

the committee, members and other users in theplanning process

• a programme for discovering the needs of thecommunity using one or more of the followingmethods:– door to door canvassing– surveys using a questionnaire– public meetings– newsletters and community newspapers– correspondence columns in local newspapers– talks with existing groups

• measures for informing key people of progress asthe action plan unfolds: the community; council-lors; local authority officers; community organi-sation members

• the development of appropriate publicity policiesand practices

• a programme for tackling access matters includ-ing physical adaptations of the building for peo-ple with disabilities and publicity in locally usedlanguages other than English

• a programme of education and training requiredfor adequate implementation of the action plan

covering:– helping people to adapt to new roles– bringing about necessary attitude changes– fostering teamwork and better

communication• a schedule of tasks and duties: who will carry out

what aspects of the plan, with what help and bywhen

• a list of the resources required to implement theplan:– people– equipment– finance– expertise

• a timetable for agreeing the plan and putting itinto action

A WORD OF CAUTIONSome people are very good at planning, so good infact that they can get entirely wrapped up in produc-ing a wonderful plan on paper that any communityorganisation would be proud of but that is totallyimpossible when it comes to putting it into actionbecause the organisation does not have the re-sources. Do not over-plan. Do just enough to suitthe size and nature of your particular communitybuilding. The effect of too much planning can toavoid change rather than create it!

MORE DETAIL ON SOME ASPECTS OF THE ACTION PLAN

DOOR TO DOOR CANVASSINGReaching out means reaching out: there is no sub-stitute for physically getting out there and meetingpeople. It shows that you are prepared to put yourbeliefs into action and give time to the people yousay you are there to serve. So whether it is in theshopping centre, the launderette or on people’sfront doorsteps, go out and meet them, listen tothem, show an interest in what they would like tosee in the community and tell them about what isalready going on in your community building.

Most of us are wary of people selling things onour doorstep, however, whether it be politics, reli-

gion, double-glazing or floor polish. There are alsofar too many horror stories of thefts arising frompeople gaining entry to homes in the disguise ofsome kind of service person. So it is important, fromthe outset, to do anything you can to allay people’sfears and unease. Carry some official identificationfrom your organisation and do not attempt to getinside the house. Even if asked it is better to bereluctant.

People will, in the main, be pleased that youhave bothered to visit them but they might notshow it. Uncomfortable feelings arise if there isnothing to focus attention on other than

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conversation. So have a leaflet ready, or news aboutsome specific activity that you would like to share.Even if a formal survey (see following) is not themain purpose of your visit a simple questionnaire canprovide that focus of attention that breaks the ice.

SURVEYS USING A QUESTIONNAIRESurveys and questionnaires are useful in many ways.They are an apparently neutral device for beginninga conversation with someone. They can be a goodmeans of discovering facts and opinions about yourlocality. How many older people are there? Is therean unmet need for all the young people in the area?What numbers of people with disabilities live in ourcommunity? How many of them attend activities inthe Community Centre? How many more would iftransport or escorts were arranged? What would bethe level of support for the new women’s group weare thinking of starting?

Survey results can also be very valuable for plan-ning a new programme of activities for your centre,for helping to convince funders that their moneywould be very well spent, or for discovering newsources of active help for the community building.

People in community organisations often haveone of two rather extreme views about question-naires and surveys based on them. The first is thatthey are totally reliable tools for fact and opinionfinding and can be used for anything by just aboutanyone. People in this group also tend to think thatjust because the survey asserts something the desiredaction that should flow from it will be automatic.The second is that surveys are far too complicatedand difficult for the likes of us and to be of any valueat all they have to be 100% perfect: therefore wewill not bother.

The truth is contained in neither of these views.If common sense is applied and a few basic rulesadhered to surveys with questionnaires can be a veryvaluable means of achieving various different objec-tives within a community setting. It is simply impor-tant to remember that results are not a cast ironsupport to a particular viewpoint and that even ifthere is support for an idea you will still need to putin a lot of hard work to make it happen.

BASIC RULES IN UNDERTAKING ACOMMUNITY SURVEY• be clear what it is you want to discover• be clear in advance to whom the results of the

survey will be submitted• ask open ended questions and not those that lead

the respondent to a predetermined answer• always have a question asking if the respondent is

willing to become involved as a helper in theactivities in which she or he has expressed aninterest

• deliver a leaflet in advance of the interviews,briefly telling people about the survey, its pur-pose and timing

• make sure you get a good coverage of the area –either every household or a good representativesample, say every fifth household

• wherever possible see the respondent yourself:there will be a significantly higher response and,equally if not more important, respondents willhave seen a member of your community organi-sation and see the building as one with a humanface

• make sure you get a good coverage of groupingswithin the community, by age, gender and ethnicbackground

• plan your approach in terms of person-hours,giving each interviewer a manageable number ofinterviews allowing 30 minutes for each one(some will take much less time)

• have a trial run or pilot for the questionnaire andmake adjustments to simplify and clarify thequestions accordingly

• brief interviewers carefully, covering the need tobe neutral, friendly and thorough

• write a report on the survey outlining themethod, summarising the findings, and drawingconclusions and recommendations for action

• send it to local organisations and/or present it toa public meeting

Much more could be said about surveys and ques-tionnaires. The aim of this section is to convinceyou that it is very valuable to undertake them andthat you do not have to qualify as a professor ofsociology to be able to do it.

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More help can be found in two informationsheets published by Community Matters: Neighbour-hood Surveys and Leisure Interest Surveys, and theirpublication simply called Reaching Out is very valu-able too.

PUBLIC MEETINGSHolding a meeting to which the local community isinvited can be valuable in a number of ways. It canbe the galvanising point for a local campaign. It canhelp to gauge the interest in a proposed new activ-ity. It can contribute to letting the authorities knowthe strength of feeling in the community. Also itwill let the community know what the inside of yourbuilding is like and show you to be an organisationthat is open to their views.

There are a few practical points to rememberwhen planning the meeting:• prepare a clear and simple agenda• have clear publicity leaflets and posters in all the

appropriate languages• get the seating right: rows for formal meetings,

circles or semi circles for a more informal ap-proach

• make sure you have a good chairperson who cancontrol the meeting, keeping it to its agenda butenabling everyone to have their say; this is moredifficult than you may think and it may be worthasking someone with particular experience to doit for you

• provide signers for people who are hearing im-paired, and interpreters if necessary

• make sure that the room is not distracting fromthe main purpose of the meeting

• make sure that other activities in the building donot distract from the main purpose of the meeting

• provide a covered table and water for the chair-person and other speakers

• provide a visual display of any material relevantto the purpose of the meeting

• have a list at the entrance for people to give theirname and address

• find a way of reporting back the main conclusionsof the meeting and any action proposed; this couldbe in the form of a follow up leaflet to all those whoattended or were invited to the meeting

NEWSLETTERS AND COMMUNITYNEWSPAPERSWhole books have been devoted to this subject andsome are listed at the end of the chapter. Particu-larly helpful are Making News published by Commu-nity Matters and Charity Newsletters published bythe Directory of Social Change.

In summary, newsletters and community newspa-pers can be very useful tools in keeping people in-formed about what is going on both within the com-munity centre and in the community around it. Theycan also become a tremendous burden and cost andeven counter-productive if they are badly produced.There are important points to bear in mind:• be clear about the specific aims of the newsletter:

information? debate? community cohesion?• who is it meant for?• who will write, edit, produce and distribute it?• how much will it cost? where will the money

come from?Once these questions have been satisfactorily an-swered you can set about producing the newsletteror community newspaper. The main thing to takeaccount of is to produce something that will achieveyour aim, not that matches up to some external ideaof what a good community newspaper should belike.

As with all publicity, keep the copy simple andconcise and have clean, easy to read printing. Makesure there is lots of white space as well as the text onthe page. This will make it much more attractiveand readable. Consider whether you should produceversions in any locally used languages other thanEnglish.

If you sincerely want to be outward-looking thenewsletter must provide news and views (and notjust yours!) about the community as a whole and notjust your building.

TALKS WITH EXISTING GROUPSThere will probably be quite a lot of agencies andgroups in your area that will be able to give youinvaluable information about the community. Thiswill fill out the profile you gain from your surveysand also help you to make useful contacts for mutualsupport. Reach out to them too. The following

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checklist may be of help:• social services department• housing department• schools and colleges• libraries• youth service• local councillors• health centre• doctor’s surgeries• health visitors• training and enterprise councils• churches• synagogues• mosques• other religious organisations• advice centres• voluntary service council• law centres• ethnic minority groups• police consultative groups• disability groups• youth clubs• pensioners groups• tenants associations• residents associations

DEVELOPING APPROPRIATE PUBLICITYPOLICIES AND PRACTICESDespite the fact that it seems to have acquired a badname in many circles public relations is a very im-portant management task for a community building.All it really means is making sure that you use allreasonable means to get across to the public (orpublics) the message that you want to get across. Inthe case of most community buildings this messagewill no doubt be some variant of the following:

We are a friendly place with a policy of providing,insofar as money will permit, services for all sections ofthe community. We are run by the community. So this isyour building. We want to hear from you what you thinkof the place and how it could be improved. We try to beefficient without being officious. We try to support otheractivities and causes in the community, not just thosethat go on in the building.

That’s the message. In order to get it across you need

to go back to the section on page 172 ‘Enhancingyour Image’ and check that you really have done allyou can to implement the suggestions there. Thereis, however, much more you can do to promote yourbuilding and its activities.

PUBLICITY OFFICER AND PUBLICRELATIONSGood public relations are so important, both fromthe point of view of improving your service and thetake up rate and in order to help you with raisingfunds, that it is well worth considering designatingone of your committee or staff as publicity officer.This person will co-ordinate all the public relationsaspects of the building’s programme and be able toadvise and exhort everyone else to be conscious ofpublicity and image.

The following checklist of public relations taskswill be overseen by the publicity officer. If you donot have such a person find another way of imple-menting them in your community building:• build up good relationships with individuals in

the local press, radio and TV before you wantanything publicised so that they are on your sidewhen you do

• write careful and concise press releases• have someone designated to be the spokesperson

for the press• create a mailing list divided into different sec-

tions for the different groups of people and or-ganisations you will need to contact at differenttimes depending on the occasion

• create a distribution network for your leaflets,posters and newsletters using voluntary helpwherever possible

• create a house style for all your printed docu-ments: that is a distinctive way of presenting allyour publicity material so that they are immedi-ately recognisable as coming from your commu-nity building

• try to get local journalists on a voluntary basis towrite material for you from time to time that youcan use in publicity documents

• make sure all your publicity is clear and explicit• make sure your publicity material goes to where

the ‘public’ will see it

REACHING OUT

178

• try and get publicity by association by havingTV, sporting or other personalities involved insome of your events and activities, or giving you aphotograph with a message to publish in yourpublicity material

• invite local dignitaries to events, including, forinstance, the Mayor, the MP and your localcouncillors

• organise open days• make sure that all your publicity can be read by

everyone in the community: in other words printit in minority languages as well as English andproduce it on audio tape

• consider organising specific campaigns (but re-member that charity law puts some limits onwhat you can do)

TRAINING FOR REACHING OUTIt bears repeating that if you take a thorough goingapproach towards being outward looking then youwill undoubtedly ruffle some feathers. Some of themwill be yours and your helpers’. Reaching out is noteasy – we all have something to learn. The best wayto deal with this is to organise some kind of trainingevent.

A good start would be simply to have a series ofgroup discussions, preferably with a facilitator fromoutside the organisation, focusing on the changesproposed. Everybody should be given an opportu-nity to air her/his views and to explore what trainingwould be helpful. Training that is undertaken will-ingly is ten times more effective than training that isvirtually imposed.

A sensible training programme would provide amix of sessions on human relations, talks and work-shops on technical skills such as poster making, ornewsletter production, and equal opportunitiesawareness sessions.

Such a training programme need not cost verymuch as there are many people around in localcommunity organisations and local authorities whooffer advice and assistance on many aspects of thiskind of training at low or no cost. Start your searchfor such help with the council for voluntary service,rural community council or local federation of com-munity organisations.

There are also more and more private consult-ants in the training field. Most of these charge morebecause they are not grant-aided, but it may beworth ‘buying in’ at least some initial training to setyou on the right track. NCVO has a list of accred-ited trainers and consultants and, again the localcouncil for voluntary service or rural communitycouncil will also be aware of such professionals inyour area.

REACHING OUT

REACHING OUT CHECKLISTIn addition to checking all the checklists already givenin this chapter has your organisation considered thefollowing Reaching Out tasks:• become conscious of the need to be outward-going• developed a basic welcoming approach in everyone

involved in all your activities• taken positive steps to enhance your image• set up a reaching out sub-committee• produced a reaching out action plan including some

or all of the following:– door to door canvassing– surveys using a questionnaire– public meetings– newsletters– talking to other groups

• developed a detailed publicity policy• appointed a publicity officer• considered a special training programme for

reaching out• established evaluation and review mechanisms for

your reaching out action programme• put reaching out as a regular item on the agenda of

the management committee

179

REACHING OUT

USEFUL ADDRESSES

FURTHER READING

Access Data Sheetspublished by RADAR

The Campaigning Handbookpublished by the Directory ofSocial Change

Community Profiling – AuditingSocial Needspublished by the Open Univer-sity Press, available fromMarston Book Services

DIY Guide to CharityNewsletterspublished by the Directory ofSocial Change

DIY Guide to Marketingpublished by the Directory ofSocial Change

The DIY Guide to PRpublished by the Directory ofSocial Change

Getting Your Message Acrosspublished by CommunityMatters

Leisure Interest Surveys –Information Sheet 49published by CommunityMatters

Making News: Producing aCommunity Newspaperpublished by CommunityMatters

Neighbourhood Surveys –Information Sheet 48published by CommunityMatters


ACRE(Action with Communities in Rural England)Somerford CourtSomerford RoadGloucestershireGL7 1TW







☎ 020 7226 0189e-mail communitymatters@

communitymatters.org.uk

web site


180

Publishers’ Address List

ACRE(Action with Communities inRural England)Somerford CourtSomerford RoadCirencesterGloucestershire GL7 1TW



Sandy Adirondack39 Gabriel HouseRedriff EstateOdessa StreetLondon SE16 7HQ


web site sandy-a.dircon.co.uk

Arbitration and ConciliationService (ACAS)Publications orders – ACASReader

☎ 01455 852 225web site www.acas.org.uk

Some publications can bedownloaded from the web site

Butterworths Tolley2 Addiscombe RoadCroydonSurrey CR9 5AF

☎ 020 8686 9141e-mail customer-

[email protected]




Charities Advisory TrustRadius WorksBack LaneLondon NW3 1HL

☎ 020 7794 9835

Charity CommissionPublications orders:

☎ 01823 345427web site www.charity-

commission.gov.uk

Many publications can bedownloaded from the web site

Charity Law Association- see Plaza Publishing

Commission for Racial Equalityfree publications:Elliot House10-12 Allington StreetLondon SW1E 5EH


web site cre.gov.uk/publs/publist/

html

priced publications:Central Books99 Wallis RoadLondon E9 5LN


Community AccountancyProject18 Ashwin StreetLondon E8 3DL





web site communitymatters.org.uk

Community TransportAssociationHighbankHalton StreetHydeCheshire SK14 2NY


web site

www.communitytransport.com

Companies Registration OfficeCrown WayMaindyCardiff CF4 3UZ

☎ 01222 388588web site

www.companieshouse.gov.uk

Croner PublicationsCroner HouseLondon RoadKingstonSurrey KT2 6SR


web site www.croner.cch.co.uk

HM Customs and ExciseInformation Branch4th FloorRalli Quays West3 Stanley StreetSalford M60 9LAweb site www.hmce.gov.uk

(VAT publications availablefrom local VAT offices)

181

PUBLISHERS’ ADDRESS LIST

Department for Education andEmploymentSanctuary BuildingsGreat Smith StreetLondon SW1P 3BT


web site www.dfee.gov.uk

Department of HealthPO Box 777London SE1 6XHfax 01623 724 524web site doh.gov.uk/pointh.htm

Department of Social SecurityRichmond House79 WhitehallLondon SW1A 2NS


web site www.dss.gov.uk




Equal OpportunitiesCommissionPublications/Marketing UnitOverseas HouseQuay StreetManchester M3 3HN



FICO (Inland RevenueFinancial Intermediaries andClaims Office)St John’s HouseMerton RoadBootleMerseyside L69 9BB

☎ 0151 472 6036web site www.inlandrevenue.gov.uk

Friends of the EarthPublications Despatch56-58 Alma StreetLuton LU1 2PH

☎ 01582 482297

☎ 020 7490 1555 (credit cardorders)web site www.foe.org.uk

The Gaming Board for GreatBritainBerkshire HouseHigh HolbornLondon WC1V 7AA

☎ 020 7306 6269

Hamilton House MailingsEarlstrees CourtEarlstrees RoadCorby NN17 4AX

☎ 01536 399016

The Health and SafetyExecutivePublic Enquiry PointInformation CentreBroad LaneSheffield S3 7HQ


web site www.hse.gov.uk

The Home Office50 Queen Anne’s GateLondon SW1H 9AT

☎ 020 7273 3000

HSE Books

☎ 01787 881165

ICSA Publishing LtdFreepost HH54LetchworthHerts SG6 1YB


Labour Research Department78 Blackfriars RoadLondon SE1 8HF


LASA2nd Floor88-94 Wentworth StreetLondon E1 7SA


web site www.lasa.org.uk

London Voluntary ServiceCouncil356 Holloway RoadLondon N7 6PA


web site www.lvsc.org.uk

Marston Book ServicesPO Box 269, AbingdonOxon OX14 4YN


182

PUBLISHERS’ ADDRESS LIST

NACRO(National Association for theCare and Resettlement ofOffenders)169 Clapham RoadLondon SW9 0PU

☎ 020 7582 6500e-mail

[email protected]



web site www.volunteering.org.uk

National Council for VoluntaryOrganisations (NCVO)- see Hamilton House Mailings

Neighbourhood Energy ActionSt Andrew’s House90-92 Pilgrim StreetNewcastle upon Tyne NE1 6SG

☎ 0191 261 5677

The Office of Fair TradingField House15-25 Breams BuildingsLondon EC4A 1PR

☎ 020 7211 8000

☎ 0845 7224499 (consumerinformation)web site www.oft.gov.uk

Open University Press- see Marston Book Services

Plaza Publishing3 Rectory GroveLondon SW4 0DX

☎ 020 7819 1200

RADAR12 City Forum250 City RoadLondon EC1V 8AF


web site www.radar.org.uk

The Stationery Office51 Nine Elms LaneLondon SW8 5DRandPO Box 29St Crispins HouseDuke StreetNorwich NR3 1GN


web site www.the-stationery-

office.co.uk

Tolley Publishing Co Ltd- see Butterworths Tolley

Waste WatchEuropa House13-17 Ironmonger RowLondon EC1V 3QN

☎ 020 7253 6266

☎ 0870 243 0136 (helpline)web site www.wastewatch.org.uk

183

Index

Accounting requirements 14Accounts and reports 78, 79Action plan – reaching out 173Active Community Unit, Home Office 70Activities – programme 66Addresses 25, 53, 81, 95, 106, 130, 144,

157, 170, 179, 180Advertising – jobs 42Alarms 149, 150Alcohol 14, 111Altering the governing instrument 9Amusement machines 115Annual reports 80Annual turnover limit 99Application forms 41Applications – fundraising 75, 76Appraisals 51Area of benefit 7Arts Councils 72Arts lottery funding 72Assigning a lease 16Audits 78Balancing the budget 64Bank accounts 78Bars – see AlcoholBenefits and volunteers 35, 36Bingo 115Books of account 77Breach of trust 10, 13Budgeting 58, 64Budgets, sample 60, 61Building regulations 125Buildings – zero rating 104Buildings insurance 89Business interruption insurance 90Business plans 66Buying property 15Cafés 99, 120Canvassing 174Capital gains tax 100Capital grants 68Car boot sales 123Caretakers 48Carnegie UK Trust Village Hall

Grant Programme 74

Cautionary tales 6, 37, 59, 88, 98, 110, 136, 146Central costs 65Central government grants 69Charitable activity 13Charitable companies 11, 79Charitable registration 15Charitable status 13Charitable trusts 73Charities – accounting regulations 14Charities – fundraising concessions 103Charities – incompatible activities 13Charities (Accounts and Reports)

Regulations, 1995 78Charities Acts 3, 13, 14, 21, 67, 68, 78Charity accounts and reports 78Charity shops 98, 124Charity SORP – see Statement of

Recommended PracticeChecklist – constitutional and organisational 24Checklist – employees’ rights 33Checklist – end of event 120Checklist – financial management 78Checklist – food hygiene 122Checklist – furniture and equipment 155, 156Checklist – health and safety 121Checklist – heating, lighting and cleaning 143Checklist – insurance 94Checklist – Licensing and other

legal permissions 130Checklist – rates and taxes 106Checklist – reaching out 178Checklist – rules and relationships 169Checklist – rules governing the use of

the community centre 161Checklist – staffing 52Children Act, 1989 127, 128Children, protection 127Claims – insurance 94Cleaners 48, 141Cleaning schedule – washroom/lavatory area 141Cleaning 140, 142Code of conduct – equal opportunities 39, 167,168Committed reserves 65Committee officers 8Committee structures 8Community Trading Services 11, 89, 93, 100, 111

184

INDEX

Computer insurance 90Computers 152Conditions of grant aid 68Conditions of hire – model 164Constitutional and organisational checklist 24Constitutions 7, 10. 23Construction (Design and Management)

Regulations, 1994 125Constructive dismissal 47Contents insurance 90Contract of employment 44, 45Conveyance – model 19Conveyance and trust deed – model 19Copyright 114Corporation tax 98, 111COSHH 119Countryside Agency 70Covenants 99Criminal Records Bureau 129Custodian trustees 17, 21Data Protection Act, 1998 127, 154Declaration of trust 10Department of Health 70Depreciation 64Design – buildings 136Designated funds 65Disability – definition 147Disability discrimination – exceptions 148Disability Discrimination Act, 1995 146Disciplinary procedures 46, 168Disclosure – insurance 92Dishonesty – insuring against 91Dismissal 46Dissolution 9Duration – lease 16Education Act, 1944 68Electrical equipment 152Electronic communication 153Employees’ rights and responsibilities 31, 33Employer’s liability insurance 90Employment law 31Employment practices 38End of event checklist 120Energy management programme 140English Heritage 71English Partnerships 70

Entertainment licenses 112Equal opportunities – training 40Equal opportunities – volunteers 37Equal opportunities employment 38Equal opportunities policy 39, 166Equal opportunities 166Equipment failure insurance 91Equipment 146European funding 71Excepted charities 13Exempt charities 13Exempt supplies – VAT 102, 103Expenses and volunteers 36Feasibility studies 73Fidelity insurance 91Film and video licence 114Final salary scheme 49Finance Act 2000 99Finances, managing 77Financial management checklist 78Fire alarms 149Fire drills 150Fire fighting equipment and alarms 149Fire notices 150Fire precautions 119First aid 119Floors 140Food hygiene checklist 122Food hygiene 120Food premises 121Food Safety (General Food Hygiene)

Regulations, 1995 120Food Safety (Temperature Control)

Regulations, 1995 120Food Safety Act, 1990 120Forms of tenure 15Foundation for Sport and the Arts 74Fuel and power supplies 105Fundraising concessions, charities 103Fundraising ideas 85Fundraising 66, 74, 75Furniture and equipment – checklist 155, 156Furniture 146Further help – tax 100Further reading 26, 54, 83, 107, 132,

144, 157, 170, 179

185

INDEX

Gaming licence 115Gaming machines 115General meetings 9General reserves 65Gift Aid 99Governing instrument – see ConstitutionsGovernment grants 67, 69Grant aid conditions 68Grant making trusts 73Grants – capital 68Grants – central government 69Grants – local and regional government 67Grants – revenue 69Grievance procedures 47Gross misconduct 46Group personal pension 50Hazardous substances 119Health and safety – computers 154Health and safety – volunteers 38Health and Safety at Work Act, 1994 117Health and safety checklist 121Health and safety 117Heating and lighting 137Heating systems 138Heating, lighting and cleaning checklist 143Heritage Lottery Fund 73Hiring agreement – model 164Hiring out buildings 163Hiring vehicles 126Holding trustees 17Home Office 70Honorary officers 8Image 172Incidental and occasional sales of alcohol 111Income and expenditure categories 62Income sources 67Income tax 100Incorporating trustees 10, 11Independent examination 78Industrial and Provident Societies Act 12Industrial and provident societies 12Industry and commerce 74Informal interviews 43Information for applicants 40Inland Revenue 98Input tax 101

Insulation 138Insurance checklist 94Insurance 87Internet 153Interviewing 43Job advertisements 42Job descriptions 41Justices on-licence 112Key elements – constitutions 7Kitchen equipment 151Landlord and Tenant Act, 1954 16Leasing property 16Legal liabilities insurance 89Letter of job offer 44Licence, property 17Licences, film and video – exemptions 114Licences and legal permissions 109, 111Licensing Act, 1964 111Licensing and other legal permissions checklist 130Local and regional government grants 67Lotteries 99, 116Lottery licence 115Maintenance 137Management agreements 23Management of Health and Safety at Work

Regulations, 1999 118Managing finances 15, 77Managing workers 44Manual records 154Marketing 74Material facts 92Meetings – public 176Meetings 9Membership – association 7Metropolitan boroughs grants schemes 69Minibuses 126Model code of conduct 168Model constitutions 9, 10Model documents – property acquisition 18Model hiring agreement 164Money purchase scheme 49National insurance 35, 48National Lottery Charities Board 72National Lottery 72National minimum wage 32Negligence 10

186

INDEX

New buildings 136New for old cover 90New Opportunities Fund 73Newsletters 176Non-business supplies 102Notional earning rule 35Objects 7Obligations – charitable registration 15Occasional licence 112Occasional permissions licence 112Occupational pension schemes 49Offenders 42Office equipment 149Official Custodian for Charities 11, 17, 18Opportunities for Volunteering Scheme 70Organisation – types 7Output tax 101Paid employees 38Paid officers 8Part-time workers 32Payments – employees 48PEL, see Public entertainment licence 113Pensions 49Person specifications 41Personal accident insurance 91Personal pensions 50Personal protective equipment 118Phonographic Performance Limited 115Photocopiers 149Plan of action – buildings 137Planning permission 124Plate glass windows insurance 90Playgroup equipment 151Police checks 128Political activity – charities 14Positive action 39, 168Powers 7Primary purpose trading 99Private lotteries 116Professional fundraisers 67Professional indemnity insurance 91Programme of activities 66Protection of children 127Provision of alcohol 112Public collections 15Public liability insurance 89

Public meetings 176Public relations 177Publicity policies 177Publishers’ addresses 180Purchases – concessions for charities 103Quangos 70Questionnaires 175Raffles 116Rate relief 105Rates and taxes – checklist 106Rates and taxes 97Reaching out – checklist 178Reaching out 171Record keeping 127Records – recruitment 43Records – VAT 101Recruitment – paid workers 40Recruitment – volunteers 38Recycling 142Redundancy 47References 44Refuse charges 142Register of charities – review 13Registration – charities 13Regular trading 99, 124Rehabilitation of Offenders Act, 1974 42Remuneration – trustees 8Rent 16Renting office equipment 149Repairs – responsibility for 16Repetitive strain injuries 154Reserves 65Responsibilities of trustees 21, 22Restricted funds 65Restrictions – provision and sale of alcohol 112Restrictive covenants 112Retirement 49Revenue grants 69Rights and responsibilities of employees 31Road traffic insurance 91Royalties 114Rules and relationships – checklist 169Rules and relationships 159Rules governing the use of the

community centre – checklist 161

187

INDEX

Rules of meetings 9Sample budgets 60, 61Secondary glazing 138Security arrangements 93, 150Sensitive data 127Sewerage charges 105Shortlisting 43Single regeneration budget 69Small lotteries 116Social clubs 99Society lotteries 116SOFA – see Statement of Financial ActivitiesSORP – see Statement of Recommended PracticeSports Councils 71, 72SRB, see Single regeneration budgetStaffing checklist 52Staffing 29Stakeholder pensions 49Stamp duty 100Standard rated supplies 103Standards of behaviour 168Standing orders 9Statement of employment particulars 45Statement of Financial Activities 79Statement of intent 39, 166Statement of Recommended Practice (SORP) 79Statutory permissions 117Storage 148Street collections 124Subscriptions 8Subsidiary companies 99Summary of accounting requirements

for charities 14Supervision 50Support 50Surrendering a lease 16Surveys 175Tax – further help 100Tax exemptions 99Tax reliefs – charities 13Tax 48, 98Taxable supplies 101, 102Temperatures 118, 139Terminating membership 8Theatre licence 113Theatres Act, 1968 113

Threshold – VAT 101Trading standards 123Trading subsidiaries 124Trading 14, 98, 99, 123Training – computers 153Training – equal opportunities 40Training – fire 150Training 51Transport Act, 1985 126Trust deed, see Trusts 10Trust property 9Trustee indemnity insurance 91Trustees’ remuneration 8Trustees’ responsibilities 22Trusts 10Underinsurance 92Unfair dismissal 47Unincorporated associations 9Value added tax 100VAT – see Value added taxVery small organisations 48Village hall grants 74Voluntary registration – VAT 102Voluntary workers 30, 35-38Volunteers, see Voluntary workersWaste disposal 142Water charges 105Working time regulations 32World Wide Web 153Wrongful trading 10Zero rated supplies 103

188