Bates Wells Briefing for Charities & Social Enterprises | 10 May 2017

Bates Wells highlights

Charities, Social Enterprise

The Institute of Fundraising has launched a new guide “GDPR: the essentials for fundraising organisations”. See today’s briefing for a link to more details.

We are pleased to announce our How to get the most out of working with your MP event taking place on Tuesday 23 May. See below for more details.


At a glance

ACEVO has published “Speaking fairly, acting boldly: the legacy and achievements of charity campaigning”.

The Government has confirmed that EU students will remain eligible for undergraduate, master’s, postgraduate and advanced learner financial support in academic year 2018 to 2019.

The Parliamentary Health Committee has published its report on the effect of Brexit on health and social care.

The Social Economy Alliance has launched its manifesto for the General Election.

The King’s Fund has published “Caring to change: how compassionate leadership can stimulate innovation in health care”.


Charity Commission

New inquiries

The Commission has opened inquiries into two charities which had previously been included in the class inquiry into “double defaulters” but both ceased to be part of that inquiry when they had submitted their outstanding accounting information. However, the charities were both again in default of their accounting obligations this year. In the case of Bethel United Church of Jesus Christ Apostolic UK (1047717): the Commission has identified further serious regulatory concerns relating to financial controls and governance, including related party transactions, to be examined. In relation to Islamic Trust (Maidenhead) (1034710): the Commission has said that it has opened the inquiry because of the trustees’ repeated failure to comply with their legal duties in filing statutory returns, particularly given the assurances previously provided to do so, and the continued evidence of mismanagement and misconduct in the administration of the charity warrants further investigation from the Commission as part of an inquiry.

Inquiry report – double defaulter

The Commission has published its inquiry report into “double defaulter” Chesed Leyisruel Trust (1141178).

Online services

The Commission has issued a news story publicising its online services, including how to change a charity’s correspondence details, submit an annual return or request a copy of a governing document:

ICSA Report on Cultural Markers in Charities

Third Sector has reported that a new ICSA report on Cultural Markers in Charities (see here) which is based on discussions at a round-table event held by the ICSA last year, identifies 13 “red flags” it says act as an early warning system for charities, including strong personalities in leadership roles, a “sticking plaster” approach to major challenges and undue influence from funders.



Charity Tax Group reports that implementation of the Museum and Galleries Tax Relief has been postponed due to the election.



NCVO has published the slides from all the workshops at its Annual Conference last month.


General election and campaigning

NCVO has published an election message “Charities and volunteering make Britain great”.

ACEVO has published “Speaking frankly, acting boldly: the legacy and achievements of charity campaigning”. ACEVO says the report “outlines some of the recent threats to charity campaigning, and reminds us of the successes campaigning has achieved. The report is a rallying cry to encourage charities to speak out on behalf of their beneficiaries.”

Also see under Social enterprise and Sport below.



UK’s Post-Brexit Deal

The European Council issued its guidelines for the Brexit negotiations which define the framework for negotiations under Article 50 TEU and set out the overall positions and principles that the Union will pursue throughout the negotiation. Under these guidelines, the EC reiterates its wish to have the United Kingdom as a close partner in the future and further reiterates that any agreement with the United Kingdom will have to be based on a balance of rights and obligations, to ensure a level playing field. The EC notes that preserving the integrity of the Single Market excludes participation based on a sector-by-sector approach. The EC does not rule out transitional arrangements, noting that:

“To the extent necessary and legally possible, the negotiations may also seek to determine transitional arrangements which are in the interest of the Union and, as appropriate, to provide for bridges towards the foreseeable framework for the future relationship in the light of the progress made. Any such transitional arrangements must be clearly defined, limited in time, and subject to effective enforcement mechanisms.”

Impact on the sector

See here for a summary of a recent workshop on Brexit Strategies for British & European Civil Society Organisations. The workshop was organised by University of Exeter Business School in collaboration with CORE Coalition and the European Coalition for Corporate Justice.


The Government has confirmed that EU students will remain eligible for undergraduate, master’s, postgraduate and advanced learner financial support in academic year 2018 to 2019.

Health and Social care

The Health Committee published its report on the effect of Brexit on health and social care. Giving evidence on the impact of Brexit, Jeremy Hunt MP, the Secretary of State for Health, told that the Government would not be publishing its own digest of the implications of Brexit because “the publication of what might be called the worst-case scenario could itself have an impact on negotiations.” The Health Committee does, however, urge the Department of Health to produce a comprehensive list of those issues that will require contingency planning.



Data protection

The Institute of Fundraising has launched a new guide “GDPR: the essentials for fundraising organisations”.


Social finance

Tech social ventures receive significant investments

Pioneers Post reports that two tech-focused social ventures – Unforgettable and Babylon – have received significant recent inflows of investment. Unforgettable, an online shop social venture that sells products to help people with dementia, has received £1.25m from McKesson Ventures (the venture capital arm of McKesson, the oldest and largest healthcare company in the US), following start-up funding from Bridges Impact Foundation and further £1.5m funding from Bridges Fund Management and Impact Ventures UK. The other social venture – Babylon – an affordable virtual doctor service which won the impact award at the 2017 Digital Agenda “Tech for Good” Awards, has received £50m investment from a consortium of investors. The full story can be read here.

Impact investment and scaling: a social enterprise perspective

Liam Black (co-founder of Wavelength Companies Ltd and previous chief executive of Jamie Oliver’s “Fifteen”) has posted an article on Pioneers Post on the real challenges – and opportunities – that impact investment presents to social enterprise leaders.

Social impact bonds

David Floyd of Social Spider CIC has posted an article on Pioneers Post setting out his thoughts on the current climate for social impact bonds within the framework of political discourse around SIBs.

Social Economy Alliance calls for £1bn unclaimed assets to be released into the community

Third Sector reports that the Social Economy Alliance, which includes Social Enterprise UK, the Charity Finance Group, Locality and the National Council for Voluntary Organisations, has called for over £1bn unclaimed assets – including pubs, shops, parks and cultural and recreational facilities – to be released and utilised by local communities.

On 2 May 2017, The Organisation for Economic Co-operation and Development (OECD) published a report on investment governance and integration of environmental, social and governance (ESG) factors. This report looks at whether current investment governance standards in legal and regulatory frameworks encourage or discourage financial service providers such as asset managers and insurance companies from integrating ESG factors in investment decision-making. The report found that regulatory frameworks allow for institutional investors to integrate ESG factors into their investment governance where this is consistent with their financial obligations. However, there remains some difficulties for investors in reconciling their obligations towards their beneficiaries with ESG integration.


Social enterprise

The Social Economy Alliance, representing hundreds of social enterprises, co-operatives, charities, investors, entrepreneurs, trusts and associations has launched its manifesto for the General Election. It “sets an ambitious, positive vision on how the new Government can harness the energy of businesses, community groups, charities and co-operatives to tackle the inequalities, divisions and lack of trust in the country.”

The Regulator of Community Interest Companies has published this list of CICs registered in April 2017.



Please see under Brexit above.

A school has been fined £2,000 following a conviction for a health and safety breach. A teacher who was conducting rigging and adjustments to spotlights and cabling in the school drama studio fell from a stepladder. Queen Elizabeth’s Girls’ School of Barnet, North London, was found to have inadequately risk assessed work at height in its Drama Studio and had failed to provide the teachers conducting the work with sufficient training for work at height.


Health and social care

The Care Quality Commission (CQC) has issued a £4,000 penalty notice to a care home provider, for failing to comply with national standards regarding the employment of a registered manager (see regulation 7 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 (SI 2014/2936).

The King’s Fund has published “Caring to change: how compassionate leadership can stimulate innovation in health care”. ionate leadership can stimulate innovation in health care

Also see under Modern slavery below.


Arts and culture

See under Tax and VAT above.



The Sport and Recreation Alliance has published this blog “General Election 2017: Putting sport and recreation at the heart of an active nation.”



The European Commission has published guidance on access to justice in environmental matters. The guidance pulls together previous decisions by the Court of Justice of the European Union on access to environmental justice.


Faith based organisations

See under Northern Ireland below.



Last month, the Parliamentary Communities and Local Government Committee published a report “Future of Supported Housing”.


Community assets

The First-tier Tribunal (General Regulatory Chamber) has held that land used as allotments and listed as an asset of community value by Ribble Valley Borough Council should be de-listed to allow for its use as part of a housing development.


Data protection

Greater Manchester Police has been fined £150,000 by the Information Commissioner’s Office after three DVDs containing footage of interviews with victims of violent or sexual crimes got lost in the post.


Modern slavery

The House of Commons Work and Pensions Committee has published a report on the victims of modern slavery.

The Institute of Health Visitors has published Good Practice Points for Health Visitors, entitled “Working with minority groups: Spotting the signs of an individual in Domestic Slavery“.


Northern Ireland

NICVA has released the findings from its Northern Ireland Faith Survey. The research explored the community work undertaken by the faith sector in Northern Ireland and the training and support needs of these organisations.


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This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.

All content on this page is correct as of May 10, 2017.