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stuck on commitee of local pre school
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Sorry this is a common misconception. Anyone who has a vote on the running of an organisation has a financial liability for that organisation, and is reagrded as a trustee.
Right ok, forgive me. The charity I work for has been doing it wrong for the last 50 years.
If your not a named trustee on the charity commission site and you haven't signed anything you are not a trustee.
Have you thought about trustee indemnity insurance? It's about £15 a month.
Also has anyone done a reserves analysis? It will tell you what your running costs are and what the wind up costs of the charity are. Then you will know that when the bank balance is nearing that amount it's time to close so no one ends up paying from their own pocket.0 -
Charityworker wrote: »Right ok, forgive me. The charity I work for has been doing it wrong for the last 50 years.
If your not a named trustee on the charity commission site and you haven't signed anything you are not a trustee.
Have you thought about trustee indemnity insurance? It's about £15 a month.
Also has anyone done a reserves analysis? It will tell you what your running costs are and what the wind up costs of the charity are. Then you will know that when the bank balance is nearing that amount it's time to close so no one ends up paying from their own pocket.
This is the relevant quote from the Charity Commission:-
"The persons having the general control and management of the administration of a charity, regardless of what they are called."
This is all the Management Committee taking decisions on the running of the organisation. All these members are Trustees.
Even though these may not be listed as Trustees on the Charity Commission returns, the fact that they have taken part in discussion, and more importantly voted on decisions renders them culpable.
Sorry to go on about it, but I work for an organisation that is committed to training charities and other voluntary sector groups on governence.
The advice therefore is that if the organisation is exposed to any financial losses (eg employing people, obtaining loans, entering into contracts etc) then it must be set up as incorporated.0 -
Even though these may not be listed as Trustees on the Charity Commission returns, the fact that they have taken part in discussion, and more importantly voted on decisions renders them culpable.
Exactly.
That is the point I was trying to make back in post No. 9.
I find it extraordinary that people who take on roles which involve employing staff, leasing premises etc etc should somehow feel that they have no legal responsibility for the consequences of their actions.
Obviously the body can be set up in such a way that their liability is limited, as far as the law allows. Also a prudent body will have insurance to protect the directors / trustees or whatever financially as far as possible. Neither will absolve them from responsibility for criminal actions.
There seems a popular misconception that because they are volunteers or it is a "good cause" that is all that matters. Equally, not everybody will agree that all charities are "good causes". I can think of several where I don't agree with their objectives in the slightest!0
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