Bates Wells Briefing for Charities & Social Enterprises | 2 June

Bates Wells highlights

Services
Charity
Sectors
Charities, Social Enterprise
Type
Updates

Last week Chancellor Rishi Sunak outlined further details on the extension of the Coronavirus Job Retention Scheme. These include improved flexibility to bring furloughed employees back on a part-time basis, a new taper requiring employers to contribute to furloughed salaries from August and a cut-off date, beyond which no one can be placed on furlough.  On Thursday 4th June Paul Seath will host a webinar to discuss the current developments and what they mean for you.  See here for more details and to sign up to attend. 

If you missed our joint webinar today with NCVO looking at the insolvency and members’ meetings changes being introduced by the Corporate Insolvency and Governance Bill 2020, click here to register for a recording of the webinar with the slides.


At a glance

NCVO has written about “Lifting the lockdown: the challenges our members face and how we are helping”. 

The Department for Culture, Media and Sport has issued guidance on the phased opening-up of sport and recreation facilities and activities.

New Philanthropy Capital has published a feasibility plan into accelerated legacies. 


Coronavirus – general

NCVO has written about “Lifting the lockdown: The challenges our members face and how we are helping”.

In this toolkit New Philanthropy Capital (NPC) has pulled together all the resources it thinks will be useful in a charity’s response to the coronavirus crisis.  It is divided into resources and tools for now, and resources and tools for the coming months.


Coronavirus – government and other funding

The Lottery fund received a record number of applications for Covid-19 emergency money. Third Sector reports that the National Lottery Community Fund received a record number of funding applications on the day its Coronavirus Emergency Fund opened.

Community projects supporting people with their mental health during the pandemic are to benefit from a share of £5m of additional funding.  The fund is administered by Mind as part of the Mental Health Consortia.

CAF awards first 500 coronavirus grants. The Charities Aid Foundation (CAF) has given out its first 500 grants from its Coronavirus Emergency Fund, totalling more than £2.3m. Set up to help to small charities cover core costs, the CAF was forced to close applications to the Fund on 5 April after receiving more than 5,000 in a single week, requesting a total of over £40m.

The Department for Digital, Culture, Media and Sport (DCMS) has confirmed in response to a written Parliamentary question that it will shortly publish an online resource signposting charities to the funding opportunities available for application through individual government departments, which form part of the £360m government funding package for the sector.


Coronavirus – funding for local authorities

The Department of Health and Social Care has announced that £300m will be provided to all local authorities in England to develop and action their plans to reduce the spread of COVID-19 in their areas.  Each local authority will be given funding to develop tailored outbreak control plans, working with local NHS and other stakeholders. The plans will focus on identifying and containing potential outbreaks in workplaces, housing complexes, care homes and schools and supporting the national rollout of the test and trace service.  A new National Local Government Advisory Board will be established to work with the test and trace service. Work to share lessons learned will be led by a group of 11 local authorities which have volunteered to help localise planning.

Also see under Fundraising, charity shops below.


Coronavirus – extension to furlough and payments to the self-employed

Last week Chancellor Rishi Sunak outlined further details on the extension of the Coronavirus Job Retention Scheme. This government press release summarises the key points which include:

  • improved flexibility to bring furloughed employees back on a part-time basis in July
  • a new taper requiring employers to contribute to furloughed salaries from August; and
  • a cut-off date, beyond which no one can be placed on furlough.

More details from the government are expected on Friday 12 June, but in the meantime, Bates Wells’ Partner Paul Seath will host a webinar to discuss the current developments and what they mean for you.  Click here to register for the webinar.


Coronavirus – sport and recreation facilities and phased return of “elite” sport

The Department for Culture, Media and Sport (DCMS) has issued guidance on the phased opening-up of sport and recreation facilities and activities. These apply to providers of outdoor sport facilities, personal trainers and coaches, and those involved in “elite” sporting activities (as defined), as well as to the public. The guidance supplements the Health Protection (Coronavirus, Restrictions) (England) (Amendment) (No. 2) Regulations 2020 (SI 2020/500)

  • Outdoor sports facilities (such as basketball and tennis courts, bowling greens and golf courses) and facilities for other outdoor sporting activities are permitted to reopen if those responsible for them are ready to do so and they can do so safely, following public health guidance, in particular the rules relating to distancing and hygiene. Indoor facilities, such as clubhouses, should be kept closed, apart from toilets and through-ways. Clubhouse bars and restaurants can offer take-away services, but consumption must be off the premises.
  • Each venue, including council-owned sport facilities, should make their own decisions about when their facilities are ready to open and can be operated safely. It is a decision for facility managers whether or not they hire out equipment, but they must implement sensible precautions, and clean equipment in between users.
  • Outdoor gyms, playgrounds and outdoor swimming pools must remain closed due to the higher risk of close contact and touching surfaces. Indoor facilities (such as changing rooms) should be kept closed, apart from toilets and through-ways.
  • Personal trainers may work with more than one client outdoors in a single day, provided each session is on a one-to-one basis, and those involved are maintaining social distancing and hygiene measures.
  • Individuals are asked to use the nearest, local appropriate venue to reduce pressure on transport infrastructure, but the new rules permit travel to outdoor open spaces irrespective of distance. Members of the public should not travel if they or a member of their household are experiencing coronavirus symptoms.

The DCMS landing page also includes links to detailed information about stages one and two of a proposed five stage framework for returning “elite” athletes, administrators and trainers (as defined) to full unrestricted sporting competition.


Charity Commission

New senior appointment

The commission has announced that it has appointed Nick Baker, currently the Deputy Chief Constable of Staffordshire Police to its new role of Chief Operating Officer and he is expected to take up the role in August.

Charity fraud awareness hub

The commission is promoting this free on demand webinar for charities to highlight some of the common ways charities may be affected by fraud during the COVID-19 pandemic.


House of Lords Select Committee on Public Services

In this Committee’s first inquiry, it will examine what the experience of coronavirus can say about the future role, priorities and shape of public services. There are 21 questions providing a framework for those who wish to submit views.

Question 20 relates to the role of the voluntary sector in providing public services: What lessons might be learnt about the role of charities, volunteers and the community sector from the crisis? Can you provide examples of public services collaborating in new ways with the voluntary sector during lockdown? How could the sectors be better integrated into local systems going forward? The deadline for written evidence submissions is 29th June.


Fundraising

Future of fundraising online event

Today, 2 June, from 2-3pm, NCVO is hosting an online event “The future of fundraising: threats and opportunities”.

Charity shops

The government has issued guidance on a new £50m fund, the Reopening High Streets Safely Fund, provided by the EU European Regional Development Fund. The aim of the new Fund is to help councils support their local high streets so that they get back to business with minimum risk to customers. Funding cannot provide direct financial support to businesses to make adaptations to premises, purchase personal protective equipment (PPE), purchase goods or equipment or offset wages or other operating costs.

The government is working with leading businesses and trade associations to publish a code of practice to support high street businesses through coronavirus.  The code is intended to encourage fair and transparent discussions between landlords and tenants over rental payments during the coronavirus pandemic and guidance on rent arrear payments and treatment of sub-letter and suppliers. This will “enable collaboration and cooperation within the sector and help ensure no one part of the chain shoulders the full burden of payment”.  The code will be temporary in nature and the government will explore options to make it mandatory if necessary.

Legacies

New Philanthropy Capital has published a feasibility study into accelerated legacies.  The proposed accelerated legacy scheme devised by leading investment expert, Anthony Bolton involves a donor; a charity; and a funder:

  • The donor commits to pay to the funder an amount on or before the donor’s death.
  • The funder then advances the discounted present value of that amount to the donor, that value being calculated using actuarial tables. For example, the discounted present value of a sum of £100,000 payable within an estimated 15 years might be, say, £60,000.
  • The donor then donates the borrowed sum to the charity of their choice, using Gift Aid as appropriate.
  • The risk to the funder of the donor not having enough assets to pay the agreed amount can be managed partly through pooling many loans.

Bates Wells advised on the establishment of the scheme. Philip Kirkpatrick, Partner, comments “The hope is that this scheme, which is actually very simple (while navigating complex tax and contractual issues), will generate significant donations from people who would like to see their capital making a difference immediately but feel the need to retain that capital until death. Bringing forward as lifetime gifts donations that might otherwise be made as legacies in 15 or 20 years could be a huge benefit to the sector at this time of crisis.”

Also see below for our latest podcast on fundraising. 


Education

Schools

The Cabinet Office has updated Procurement Policy Note 02/20: Supplier relief due to COVID-19 (PPN 02/20), with additional guidance for state-funded schools (additional guidance).  It explains how PPN 02/20 applies to maintained schools and academy trusts, and covers three areas:

  • How to determine if schools and academy trusts are contracting authorities and whether PPN 02/20 applies to them. The guidance states that when considering how to implement PPN 02/20, schools and academies should determine whether they are contracting authorities and, if so, which of their suppliers may be at risk and fall within the scope of the supplier relief measures set out in PPN 02/20. 
  • Key principles and guidance for considering supplier requests, based upon the approach adopted by the Department for Education. 
  • As regards school food contracts, confirming that contracting authorities should inform “at risk” suppliers that they will continue to be paid as normal (even if service delivery is disrupted) until at least the end of June 2020. This involves continuing to make payments to such suppliers for the cost of free school meals and universal infant free school meals, where those suppliers agree to act on an “open book” basis.

Health and social care

The Department of Health and Social Care (DHSC) has published guidance for those providing personal care to people living in their own home during the COVID-19 pandemic.


Social finance

The impact of coronavirus on investment income. Ruth Murphy, Head of Charities at Brewin Dolphin, writes for Civil Society Media’s Charity Finance about the likely impacts of the pandemic on charities’ incomes from investment, including discussion of the need to cut forecasted income over an indeterminate period, given that we do not know how long the pandemic will last.

COVID-19: Grimsby Deep Dive. Social Investment Business offers a “deep dive” into how the pandemic is affecting the social economy by region, using analysis of Grimsby and Cleethorpes, and how this informs SIB’s investment strategy.

Green projects given support to attract private sector investment. Defra, the Environment Agency, the Esmée Fairbairn Foundation and Triodos Bank UK are collaborating to support four environmental projects designed to create sustainable funding models and attract private investment.

The think-tank, Grant Giver’s Movement, has published a report, Power & Trust in Grant Making, focusing on the power balance between grant makers, grantee partners, and  the communities they seek to serve. The report finds an overwhelming power imbalance and concludes that greater levels of participation in grant making by those with lived experience, and by investing in expert knowledge and the sharing of knowledge, power could be shifted more into the hands of affected people and communities.


Social enterprises

Beyond crisis – preparing for long-term change. Madeleine Clarke, Lead on the European Social Catalyst Fund (ESCF) and Executive Director at Genio, writes for the European Venture Philanthropy Association (EVPA) about the ESCF extending its deadline for applications to 11 September 2020, in light of the pandemic.

Supporting the IFC Operating Principles for Impact Management in times of COVID-19. Big Society Capital explains why it has become a signatory of the International Finance Corporation (IFC) Operating Principles, a set of common standards for disciplined impact management, along with more than 90 other institutional investors and asset managers, managing an estimated USD 300bn in impact assets.


Housing and homlessness

The Ministry of Housing, Communities and Local Government has announced a commitment of £160m to support rough sleepers, currently housed in emergency accommodation, to move on to more sustainable, long-term housing.   In a related development, the Housing, Communities and Local Government Select Committee in its interim report, “Protecting rough sleepers and renters”, has recommended that unless the government amends existing housing legislation, its plans to introduce a pre-action protocol to the private rented sector will be “toothless and will fail to prevent a cliff edge of evictions” once the moratorium on possession cases ends. The Committee also recommends that the government brings forward legislation to amend the Housing Acts 1985 and 1988 to allow judges to exercise their discretion where a tenant is in rent arrears due to the COVID-19 pandemic for at least the next 12 months.


Procurement and state aid

See under Education above.


Scotland

In the second webinar in OSCR’s ‘Charities and Coronavirus’ series, Head of Professional Advice and Intelligence Laura Anderson provides a presentation on accounts and reporting to OSCR during the COVID-19 pandemic.


Northern Ireland

CCNI has updated its coronavirus page for NI charities.


BatesCast – what next for charity fundraising?

Charity fundraisers around the country are urgently dealing with unprecedented challenges. In the face of extreme financial pressure on charities, what is happening to fundraising, and how can practices be adapted? In this podcast, we speak to Lawrie Simanowitz, a partner in Bates Wells’ Charity and Social Enterprise team, along with special guest Dan Fluskey. Dan is Head of Policy and External Affairs at the Institute of Fundraising.


Disclaimer – The information contained in this update is not intended to be a comprehensive update – it is our selection of the website announcements which we think will be of interest to charities and social enterprises. The content is necessarily of a general nature – specific advice should always be sought for specific situations.


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 June 2, 2020.