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Nick Burrows

Nick Burrows. Partner Charity and Commercial Law nick.burrows@blandy.co.uk 0118 951 6851. Charity update. Charitable Incorporated Organisations The Hodgson Report VAT Cost sharing exemption Collaboration and mergers. Charitable Incorporated Organisations.

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Nick Burrows

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  1. Nick Burrows Partner Charity and Commercial Law nick.burrows@blandy.co.uk0118 951 6851

  2. Charity update • Charitable Incorporated Organisations • The Hodgson Report • VAT Cost sharing exemption • Collaboration and mergers

  3. Charitable Incorporated Organisations • Timetable for conversion from charitable trust now proceeding • Features: • Separate membership and trustees • Limited liability for members • Legal entity that can enter into contracts • Not regulated by Companies House • BUT some concern about charges/mortgages

  4. Charitable Incorporated Organisations • Conversion process: • Asset transfer agreement • TUPE • Property transfers • Contract transfers

  5. Lord Hodgson’s report • Public benefit – should it be defined? • Payment of trustees • Limitation of trustees’ terms of office • Threshold for registration • Threshold for audit • Penalties for late submission of accounts • Charges from Commission for registration

  6. Lord Hodgson’s report • Declaration of spending on political and communications work, and received from government • Support for more use of the FRSB logo

  7. VAT costs sharing exemption • Sharing back office services – the VAT problem • ‘Separate independent entity’ • Must be a separate taxable person

  8. VAT costs sharing exemption • The conditions: • An ‘independent group of persons’ supplying services to its ‘members’; • All members must carry on VAT exempt activity; • Services must be ‘directly necessary’ for the exempt activity;

  9. VAT costs sharing exemption • Conditions cont’d: • The CSG only recovers the members’ individual share of the expenses incurred; • The application of the exemption is not likely to cause a distortion of competition

  10. Collaborative working, consortia and mergers • Single function/activity collaboration • Joint venture • Consortium working • Merger

  11. Collaborative working, consortia and mergers • Benefits –v– risks • Benefit analysis • Risk analysis • Think through roles and responsibilities • Record the details in writing

  12. Collaborative working, consortia and mergers • Mergers • Transfer of membership • Transfer of assets • Formation of new vehicle

  13. Collaborative working, consortia and mergers FOR ANY COLLABORATION: DUE DILIGENCE IS CRUCIAL

  14. Nick Burrowsnick.burrows@blandy.co.uk0118 951 6851

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