Question : What happens if we decide to close the group down?

 

Answer: There are a lots of issues to be attended to if a group wishes to close its operations down. All actual (invoices to hand) and potential liabilities must be identified and addressed. Remember some bills (for example the accountant’s) may not be due for some months but will still need to be paid. Also what about any direct debits? Are there any long term equipment leases? If property is involved what is the term of notice and what, if any, are the penalty clauses. How are any funders to be notified and might they demand some returns of money. Staff are clearly a priority. Not only keep them informed but be aware of any redundancy or other payments due to them (this should, of course, have been planned for anyway). Practical things like power, water etc need to be addressed. A host of notifications will be required – bank, local authority, umbrella body etc. If the group is a registered charity then the Charity Commission will need notifying. And remember your constitution – the section on dissolution will guide you on procedures and on the distribution of any remaining assets (and if you haven’t got anything on dissolution then we suggest look at that now whilst things are going well!). This list is not, of course, exhaustive!

 

Question : I understand CRB checks are non-transferable and time limited – is that true?

 

Answer : Neither statements are true! CRB checks are transferable if the receiving group or organisation has specifically agreed to the possibility and has clear procedures regarding level of check and the time since issue. However many groups insist on a new CRB check for every new member of staff or volunteer. CRB checks are not time limited but become less useful the longer period of time that has elapsed since issue. Groups should have clear policies on regularity of checks such as every year or two years. All of this may change in the future with the introduction of the Vetting and Barring Scheme and the Independent Safeguarding Authority but this is now out for review by the new Government – contact FVAF for more details.

 

Question : Do we need insurance for our group?

 

Answer : Almost every group will need some insurances to cover their activity. Property and premises insurance for any buildings or equipment is reasonably obvious and as with home insurance make sure it is sufficient to cover replacement costs. Public liability covers third party involvement (almost always required) and Employer liability if staff are involved. This includes paid staff and volunteers – always make sure your policy refers to volunteers. If you have vehicles then you will need vehicle and driver insurance. If you have volunteer drivers using their own cars then ensure their insurance covers their volunteering – this usually requires specific reference from the insurer. Finally trustees may wish to cover themselves but this is usually a personal matter and not the responsibility of the group.

 

Question : I want to start a group to…………..?

 

Answer : This is the basis of the voluntary sector, identifying and energetically filling need. FVAF will never stand in the way but will also always look at alternatives. Is there a similar group close by, or a bigger group that could have a sub-group locally? We must avoid duplication and remember that funders will not look kindly on a new group set up just for the sake of it. Talk to FVAF first and we can help in developing appropriately.

 

Question : What is the difference between restricted and unrestricted funding?

 

Answer : Restricted funding is provided for a set purpose and must be used for that purpose. It will be identified in a groups accounts as such. Many public bodies and trust funds stipulate funding is restricted and sometimes private funding (for example a legacy) may also be for a set purpose. Unrestricted funding can be used for any purpose that the group is empowered to spend it on and also within the normal bounds of propriety and legality!! A mix of funding is often desirable covering service delivery, contingencies and forward planning.

 

Question : Must our accounts be audited?

 

Answer : Sometimes the constitution may stipulate a professional audit is required. If yes then you are bound by that but worth looking at changing it – the constitution may be very old and it is no longer a sensible option. Otherwise the word audit can be interpreted in a variety of ways and a full, professional audit may only be required if your group turnover exceeds certain limits (for example a charity only if turnover greater than £500000 or if the charity has very high assets). For most small groups an independent examination is what is required. This will be undertaken by somebody qualified (but not necessarily an accountant) to undertake the role. Remember that however the accounts are looked at funders, regulators and perhaps most importantly members and users will want to be assured finance is being used appropriately.

 

Question : Can our Constitution be changed?

 

Answer : In a word YES! Most constitutions have a clause stating clearly the procedure to be followed but also note that for registered charities some clauses cannot be changed without the express permission of the Charity Commission. If no clause exists then FVAF can guide on the best way forward.

 

Question : Do all staff need a contract of employment?

 

Answer : All paid staff have a contract of employment at the point at which employment is agreed. Best practice is to provide written particulars of that employment very soon after employment commences and certainly within two months of starting. This applies to all full and part time staff. The self-employed do not have contracts of employment but issue contracts themselves for services provided. Volunteers do not have contracts but should have a volunteer agreement. It is unlikely either the volunteer or the organisation they are involved with wishes the relationship to be anything other than voluntary but errors could lead to it becoming an employer : employee situation. Contact FVAF for more details.

 

If you have a question then contact the FVAF office and we will do all we can to help.