Wednesday, 17 December 2014

Happy Christmas from us all at PAVO

Your 60 second guide to Trustees Indemnity Insurance

Bite size guidance on changes to charity accounting

January 2015 will see the application of two new charity SORPs, and a series of blogs have been created to help guide you through the various changes that your organisation may need to make.

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Safeguarding issues highlights trustee duties

A Charity Commission report has confirmed that two trustees were guilty of mismanagement and misconduct in the administration of their charity, when they failed to adequately deal with safeguarding matters within the organisation.
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Trustees and senior staff 'should declare political activity'

Charities should require trustees and senior staff to declare any party political activity undertaken in a personal capacity, draft guidance from the National Council for Voluntary Organisations has said.
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Appointment of non-executive members to the NAO Board

  1. The newly appointed non-executive members of the NAO Board are Joanne Shaw, Ray Shostak and Robert Sykes. They will assume their new roles on 1 January 2015.
  2. The National Audit Office (NAO) scrutinises public spending on behalf of Parliament. It is independent of government. It audits the accounts of all central government departments and agencies, as well as a wide range of other public bodies, and reports to Parliament.

Friday, 12 December 2014

Do you need help with Governing documents?

Did you know PAVO can help you with all of these?

  • Constitution (for unincorporated associations)

  • CIO foundation or association constitution (for CIOs) 

  •  memorandum and articles of association (for charitable companies)

  • trust deed or will (for trusts)

Wednesday, 10 December 2014

All about governance !

"It's all about governance." That's the motto of the Association of Chief Executives of Voluntary Organisation's (Acevo) governance advice service, reflecting the view that nearly all of the challenges encountered by charities have their roots in governance issues.
From financial crises to personnel problems and risk management to strategy-setting, effective governance is central to steering charities through the everyday challenges that they face.

Did you know 
PAVO provides regular training on Governance issues
Will help you look at your organisation and see if its 'fit for purpose'
Will provide support on all governance issues
contact us on 01597 833191 or

Monday, 8 December 2014

Charity removed from register after trustee spent thousands on holidays and dental treatments

 News from the Charity Commision
A charity trustee has been jailed for 18 months after using charity funds to pay for dental treatment and holidays.
The Charity Commission reported the Children’s Cancer and Leukaemia Fund to the police after a routine investigation following payments from a commercial clothing company revealed ”serious concerns about the financial management of the charity”. It also found trustees had used the names of relatives without their knowledge.

Wednesday, 3 December 2014

How to transfer charity assets from the Charity Commission

If you need to transfer assets PAVO is here to assist you

Contact us - 01597822191 or

Your charity can make grants or gifts to other charities as a way to support its purposes (unless your governing document specifically prevents this). But you may decide to formally transfer all your charity’s assets to another charity if you:
You generally need to get the Charity Commission to approve charity asset transfers.

Asset transfers allowed by governing documents

Usually, a charity has a power to transfer in its governing document, often in the dissolution section. This may say what any assets you transfer can be used for. For example, it may say that they can only be used by a charity with similar purposes.
You must follow any procedure for agreeing and making the transfer that your charity’s governing document specifies.

Asset transfers allowed by law

The Companies Act allows you to transfer corporate property between charitable companies.
The Charities Act allows you to transfer some types of asset if your charity is a CIO, provided you follow the rules below. It also allows you to transfer most types of asset if:
  • your charity’s income is under £10,000, and
  • it’s ‘unincorporated’ (not a charitable company or CIO)

When to change charity structure

If you need to change your Charity Structure PAVO is here to assist you
Contact us - 01597822191 or

Your charity’s legal structure sets out what type your charity is. There are four common types of charity structure:
  • charitable incorporated organisation (CIO) – there are 2 structures; association CIO and foundation CIO
  • charitable company (limited by guarantee)
  • unincorporated association
  • trust
Your charity’s legal structure determines:
  • who will run it and whether it will have a wider membership
  • whether it can enter into contracts or employ staff in its own name
  • whether its trustees are personally liable for what it does
You might want to change your charity’s structure because your existing structure doesn’t allow you to do something. For example, trustees of a growing unincorporated charity may decide to change to a corporate charity structure because the charity needs to employ staff.

Monday, 1 December 2014

Social Impact Bonds and news from England

Social Impact Bonds
Social impact bonds (SIBs) are designed to help reform public service delivery. SIBs improve the social outcomes of publicly funded services by making funding conditional on achievi. Investors pay for the project at the start, and then receive payments based on the results achieved by the project.
The basic model of a Social Impact Bond is that a charity agrees with a public funder that it will try to solve a problem or deliver a very specific service.
 If the charity succeeds in reducing the problem or successfully delivering the service, the public body will make a payment. Otherwise, it pays out nothing.
But the charity doesn’t take the risk. That risk is taken by social investors, who front the cash to deliver the service. They will make a profit if the intervention works. If the intervention fails, they will lose out.
Whether the intervention works or not, with a SIB the delivery organisation is financially secure.

However, currently there is only one Social Impact Bond in Wales, The Capitalise Project is a Department of Work and Pensions Innovation fund project in Wales designed to address cognitive behaviour issues and low achievement in young people (age 14-16) to improve engagement in school and raise achievement level.

Social impact bonds have several advantages but face challenges to success including complexity, scale and difficulty proving their effectiveness, according to a report commissioned by the Big Lottery Fund.
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