Charity registration Johnny Toner, Casework and Tim Richards , Casework

1. Charity registration Johnny Toner, Casework and Tim Richards, Casework

2. Presentation objectives By the end of this presentation you will have a clearer understanding of… • the online charity registration process • the public benefit requirement • annual reporting, now and in the future There will also be time for questions

3. Background: charity registration in Northern Ireland • All organisations that are charitable must apply to register • Applies to everyone – no exceptions • Prepare for registration now, check the registration list today • On the list? You’ll be called forward to apply to register • Not on the list? Complete Expression of intent form now Check registration list: www.charitycommissionni.org.uk

4. Some important terms Charity trustee:The people who are legally responsible for the control and management of the administration of the charity. They may be called trustees, governors, directors, committee members or some other title. Control and direction: Those who have control and direction of an organisation are the people who are ultimately responsible for its management and governance – the trustees. Governing document: This is any document that sets out the charity’s purposes and how it is to be administered. It may be a trust deed, constitution, memorandum and articles of association, a Royal Charter or some other formal document.

5. What is a charity?

6. What is a charity? Established for exclusively charitable purposes: each purpose must fit within one or more of 12 descriptions of purpose and be for the public benefit Charities Act (Northern Ireland) 2008

7. What are the 12 charitable purposes? Relief of those in need Education Any other charitable purpose Citizenship, Community development Animal welfare Arts, culture, heritage, science Health, saving lives Religion Relief of poverty Environmental protection or improvement Amateur sport Human rights, conflict resolution, reconciliation, promotion religious racial harmony, equality, diversity Supporting guidance

8. What is the public benefit requirement? Benefit: this is the way in which an organisation’s purposes provide a benefit and how that benefit can be demonstrated. Public: the organisation must know who the intended beneficiaries are and how they might benefit. The nature of the public benefit and the way it may be demonstrated will be different for each purpose and for each organisation.

9. The online registration process

10. Accessing the registration system

11. When to apply for registration All charitable organisations must make sure we have your details to let you know when you must apply to register • Check the Commission’s online registration list for your charity. • Included on the registration list? Check the online tranche list • Not included on the registration list? Complete a short, online Expression of Intent form today

12. What do you need to apply? Registration information and document checklist • Governing document • Trustee declaration • Details of charity trustees: DOB, contact details, current and previous names • Bank details • Most recent annual report (if you have one) • Latest set of financial accounts (if you have them)

13. Applying for registration • Provided with a unique password • Three months to submit your application once you are invited forward • Can log in and log out after section six • DO NOT select ‘approved governing documents’ unless you are part of a pre-approved group registration eg PTAs • System has help information • System indicates what information will be shown on the public register • Some information is compulsory: you will not be able to progress without an answer *

14. Completing online registration Registration online form divided into number of sections • Preliminary questions: key information and eligibility • About your organisation • What you do • Who is involved • Special circumstances • Submitting your application Key part of the information you provide includes the public benefit requirement

15. Accessing the registration System

16. Common errors: avoid! • Incorrect / incomplete attachments • Ensure the 3 required documents are attached; governing document, recent bank/building society account statement in charity’s name, completed trustee declaration • Incorrectly selecting approved governing document • Answer no unless you are using a governing document that has been pre-approved by the Commission, does not refer to internal approval • Purposes in application do not match those in governing document • Should be a direct replica of purposes (objects) in governing document • Poor public benefit statement • use the toolkit

17. Common errors: avoid! • Poor ‘what your organisation does’ response • refer to the activities the organisation carries out to advance its purposes 6. Incorrect number of trustees or incorrectly identified • Check governing document for minimum requirement number of trustees, ensure details of ALL trustees are entered on the application 7. Trustee declaration completed incorrectly • Complete both sides, must be signed and dated (date of signature) by all trustees

18. Registration : guidance and resources • Registering as a charity in Northern Ireland guidance • Public benefit requirement statutory guidance • Purposes and public benefit toolkit • Registration document and information checklist • Registration information form: trustees and key contact • Trustee declaration form • Helper groups • Model governing documents • Online tutorial • Screenshots of the online application form

19. Completing the public benefit statement

20. What is the public benefit requirement? Benefit: this is the way in which an organisation’s purposes are beneficial and the extent to which they are beneficial. The benefit must: • flow from the charity’s purposes • be capable of being demonstrated • be beneficial, not harmful. Public: the organisation must know who the intended beneficiaries are and how they might benefit. The benefit which flows from the charity’s purposes must: • be to the public or to a section of the public • not provide a private benefit to individuals unless this benefit is incidental. The nature of the public benefit and the way it may be demonstrated will be different for each purpose and for each organisation.

21. What is private benefit? Private benefit occurs when: • an individual or organisation, that is not an intended beneficiary gains from the purposes of the organisation. • In some cases this benefit may be proper. • In other cases the private benefit may outweigh the public benefit and prevent the organisation from being a charity.

22. When could private benefit prevent an organisation being a charity? • Where an organisation has as a purpose to provide a private benefit • Where the organisation’s beneficiaries are a private class rather than the public or a section of the public • Where the private benefit outweighs the public benefit.

23. Examples of Private benefit Likely to be acceptable: • A purpose to regenerate rundown buildings of historical interest and open them for educational purposes. This may lead to an increase in tourism and benefit local hospitality providers. This is an incidental by-product of the purpose and is not a purpose in itself and is likely to be acceptable. • A charity is established to advance appreciation of culture and the arts. It plans a series of concerts featuring local musicians. The musicians benefit from exposure to a wider audience which may result in their gaining a higher profile. This is incidental to the achievement of the purpose and is necessary to help the charity achieve its purpose.

24. Examples of Private benefit Unlikely to be acceptable: • A Will established a trust fund to provide for the education of the descendants of three named individuals. This was not found to be charitable because the beneficiaries were defined by their connection to named individuals so were not the public or a section of the public. • An organisation had a purpose of promoting trade, commerce and enterprise. It argued that there was a benefit to the public in the increase of profitable businesses and the reduction of unemployment. The organisation was found not to be a charity because its purpose provided a private benefit to the individuals engaged in trade, commerce or enterprise and the benefit to the public was too remote.

25. Toolkit: public benefit Completing the public benefit statement • Demonstrating this benefit • Any harm arising from the purpose and whether this is outweighed by the benefit • Who the beneficiaries are: the public or a section of the public • Whether any individual or organisation gains a private benefit and, if so, that this is incidental in achieving the purpose • Complete sentences in the toolkit

26. Toolkit: purposes

27. Toolkit: public benefit

28. Benefit element • For each purpose: • What benefit flows from it? • The benefits which flow from this purpose include improved health outcomes and reduced levels of stress and anxiety • Can you demonstrate the benefit? • These benefits will be demonstrated through feedback from patients and regular independent evaluation of our services • Is any harm or possibility of harm outweighed by the benefit? • In providing medical treatment for patients with illness x there is a risk of unintended side effects from the drugs however this is rare and the benefit outweighs the harm

29. Public element • For each purpose: • Who is the benefit for? • The benefits of this purpose are provided to those diagnosed with illness x and to their families and carers • Is there any private benefit? Is it incidental and necessary? • A private benefit flowing from this purpose is that gained by an organisation that owns a facility that is renovated by the charity to be used in the provision of respite. The facility is necessary to the achievement of the purpose and the investment is reasonable and the lease on the facility is long term therefore the private benefit is incidental and is outweighed by the benefit to the beneficiaries.

30. Public benefit statement The benefits which flow from this purpose include improved health outcomes and reduced levels of stress and anxiety These benefits will be demonstrated through feedback from patients and regular independent evaluation of our services In providing medical treatment for patients with illness x there is a risk of unintended side effects from the drugs however this is rare and the benefit outweighs the harm The benefits of this purpose are provided to those diagnosed with illness x and to their families and carers A private benefit flowing from this purpose is that gained by an organisation that owns a facility that is renovated by the charity to be used in the provision of respite. The facility is necessary to the achievement of the purpose and the investment is reasonable and the lease on the facility is long term therefore the private benefit is incidental and is outweighed by the benefit to the beneficiaries.

31. Practical exercise: Public benefit statement

32. Practical exercise Example public benefit statement The trustees believe that our purpose satisfies both elements of the public benefit requirement. Purpose one The direct benefits which flow from this purpose include an increase in the number of children in education across the world and reduced infant and child mortality rates. These benefits can be demonstrated through official government statistics. There is the potential for harm in sending volunteers to dangerous parts of the world however this is mitigated through having policies in place to protect them and is necessary to achieving the purpose. The beneficiaries of this purpose are children in any country of the world. A private benefit may be to the travel company with whom we have a relationship to facilitate the movement of volunteers abroad. These benefits are incidental and necessary to ensure the benefit is provided to our beneficiaries.

33. What next?

34. Next steps • Gather all information needed from within your organisation using the checklist produced by the Commission • Read the public benefit statutory guidance • Use Commission guidance to prepare your application for registration • Get trustee declaration signed • Submit application for registration by the deadline – ideally well before

35. Register of charities If registered, your organisation will be placed on the public register of charities

36. Online services If registered, organisation will receive: • Welcome Pack • Log-in details to ‘Online services’ From Online services, organisation can amend information, for example: • What your charity does • How your charity does its work • Bank / building society details • Details of trustees

37. Annual reporting • All registered charities must report to the Commission on their first full financial period after their registration date. • All registered charities are required to: • complete and submit an online annual return form • submit their accounts and reports in the format in which they are currently prepared (there will later be rules on how these accounts and reports should be prepared, likely to be consulted on later in 2015)

38. Charities to submit: Annual monitoring return Copy of accounts (in format they are currently prepared) Copy of trustees’ annual report (if applicable) Copy of auditor’s/examiner’s report (if applicable) Charity accounting and interim reporting

39. Filingdeadlineexamples * First full accounting period after registration ** 10 months after the accounting period end

40. Good governance • At the heart of an effective charity is good governance • A well governed charity will find the registration and annual reporting processes straightforward • Many of the concerns we receive about charities relate to governance • Running your charity guidance • Registration FAQs

41. For more information visit our website www.charitycommissionni.org.uk

42. Thank you Any questions?