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Bridgehouse Charity Financials Article – May 2019

This month our Consultant Jo Steel appears in Charity Financials and provides a summary of the six principles stated in new guidance by the Charity Commission on how trustees should manage their connections with non-charities. Jo also provides further insight around elements that trustees should be mindful of. Below is a short snippet taken from the article:

It’s purpose is to provide a “summary for charities with trading subsidiaries; that:

  • have a non-charitable parent company or are set up by a non-charity;
  • get regular funding/support from a non-charity;
  • give regular funding to a non-charity;
  • work regularly with a non-charity to deliver services or campaigns;
  • has a non-charity as a trustee or the non-charity can appoint a trustee; or
  • has a non-charity as a sole significant member.”

These connections with non-charities can be highly beneficial and help them to deliver their charitable purposes. The new guidance will assist charities and trustees in managing the associated risks as trustees must:

  • Ensure that their charity’s resources or activities never fund or support non-charitable purposes; and
  • identify, properly address and review any risks that could arise from the connection.