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Paying to Trustee for services provided in Charity constitution.

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Paying to Trustee for services provided in Charity constitution.

2 replies 71 views
RayRayRayRayRayRayRayRay Forumite
1 posts
MoneySaving Newbie
Hello
We are forming a charity and would like to pay one of trustee whenever she teach a class when other teacher are not available.
She will be paid as same to the other teachers or at-least for for the travel expenses for the day.
how can I add it to this model constitution ? thanks

6. Benefits and payments to charity trustees and connected persons
(1) General provisions
No charity trustee or connected person may:
(a) buy or receive any goods or services from the CIO on terms
preferential to those applicable to members of the public;
(b) sell goods, services, or any interest in land to the CIO;
(c) be employed by, or receive any remuneration from, the CIO;
(d) receive any other financial benefit from the CIO;
unless the payment or benefit is permitted by sub-clause (2) of this
clause or authorised by the court or the prior written consent of the
Charity Commission (“the Commission”) has been obtained. In this
clause, a “financial benefit” means a benefit, direct or indirect, which is
either money or has a monetary value.
(2) Scope and powers permitting trustees’ or connected
persons’ benefits
(a) A charity trustee or connected person may receive a
benefit from the CIO as a beneficiary of the CIO provided
that a majority of the trustees do not benefit in this way.
(b) A charity trustee or connected person may enter into a
contract for the supply of services, or of goods that are
supplied in connection with the provision of services, to
the CIO where that is permitted in accordance with, and
subject to the conditions in, sections 185 to 188 of the
Charities Act 2011.
(c) Subject to sub-clause (3) of this clause a charity trustee
or connected person may provide the CIO with goods that
are not supplied in connection with services provided to
the CIO by the charity trustee or connected person.
(d) A charity trustee or connected person may receive interest
on money lent to the CIO at a reasonable and proper rate
which must be not more than the Bank of England bank
rate (also known as the base rate).
(e) A charity trustee or connected person may receive rent
for premises let by the trustee or connected person to the
CIO. The amount of the rent and the other terms of the
lease must be reasonable and proper. The charity trustee
concerned must withdraw from any meeting at which
such a proposal or the rent or other terms of the lease are
under discussion.
(f) A charity trustee or connected person may take part in
the normal trading and fundraising activities of the CIO on
the same terms as members of the public.




Replies

  • Savvy_SueSavvy_Sue Forumite
    42.4K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Is that not covered in clause 2b? Mind you, I have not read sections 185 - 188 of the Charities Act ... And does clause 2b not contradict clause 1c? 

    I work for a charity, not a CIO, and we have paid trustees travel expenses when requested, and also, occasionally, paid Trustees to deliver eg a training day where that's their area of expertise. 

    However, this isn't something to take risks with. Google Volunteer plus your local area / town / city and see if there is a Voluntary Service Council (it may have a different name, eg ours is called Voscur). They may have an advice service, or be able to link you with some pro bono legal advice. Failing that, see if you can find a solicitor with expertise in this area and pay them to help with this. 

    Other useful organisations:
    • AFVS - I believe their membership fee is well worthwhile, and they might be able to offer some advice. 
    • Sandy Adirondack's Legal Updates - free, although annually she checks if you are still finding them useful and invites you to make a donation if you are. 
    Still knitting!
    Completed: TWO adult cardigans, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees, 2 sets of handwarmers, 1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 3 balaclavas, multiple hats and poppies, 3 peony flowers, 4 butterflies ...
    Current projects: pink balaclava (for myself), seaman's hat, about to start another cardigan!
  • edited 29 June at 6:31PM
    LittleVoiceLittleVoice Forumite
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    edited 29 June at 6:31PM
    You don't need to add anything.  You just need to ensure you meet the conditions in sections 185 to 188 of the Charities Act 2011.  Reasonable expenses are always going to be reclaimable.
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