Constitutions and Committees Clarified 05112020 U 3 As

Constitutions and Committees Clarified 05/11/2020

U 3 As and their committees U 3 As are bound by their Constitution Committee members are all Trustees are collectively responsible for the proper handling of U 3 A funds All Trustees are covered by Trustee Indemnity Insurance provided by the Third Age Trust The Third Age Trust is a Registered Charity and a Limited Company 05/11/2020

Each U 3 A is a charity by virtue of its Constitution and is subject to Charity Law U 3 As must register with the CC once their annual income exceeds £ 5000 All U 3 As have charitable status by virtue of their Constitutions whether they are registered or not U 3 As must never use the Third Age Trust’s registered charity number 05/11/2020

What must a Committee member / Trustee do? Committee members / Trustees must ensure that their U 3 A complies with Charity Law, the Principles of the U 3 A Movement and their own Constitution They must use U 3 A funds only to further the U 3 A’s charitable Objects (purposes) They have a Duty of Care to operate in good faith to ensure the U 3 A is well-run and efficient 05/11/2020

Quite a responsibility! 05/11/2020

Help is at hand! Committee Reference File 05/11/2020

Contents: The U 3 A movement Trusteeship Committee responsibilities Finance Insurance and Safety Supporting your members Raising awareness Growth 05/11/2020

Trustees are responsible for all moneys paid to the U 3 A All money collected must go though the books Self funding groups must not bypass the U 3 A accounts Contracts for hall hire must be signed by a Trustee Groups may not set up individual bank accounts 05/11/2020

Funding your U 3 A An inclusive fee to include all interest group attendances. This saves cash handling but may discourage membership. Money “up front” allows for easier financial planning Smaller basic fee with interest group attendances charged separately. Separate charges cannot be gift aided. Also, it is harder to react to sudden increases in venue costs 05/11/2020

Use of members’ money q Annual subscriptions must be used to support the core activities of the U 3 A only q Annual subscriptions may not be used for social activities q Money cannot be moved from the main account to a social account unless it is a loan for the advance payment of tickets for visits (It is better to ensure that all moneys for tickets are paid up front) 05/11/2020

Bank accounts 1 • A Charity Account is necessary • A mandate that all cheques are signed by 2 signatories who must be Committee members/Trustees 2 • Have a pool of 4 or 5 signatories to cover holidays and emergencies 3 • Inform the Treasurer in writing about every cheque not signed by him/her 05/11/2020

Internet Banking 1 • Should be confined to those banks offering dual authorisation 2 • U 3 As should have the same level of financial control as they do with a cheque account 3 • It is acceptable to have on-line banking for interbank transfers between accounts, committee authorised Direct Debit payments and for downloading statements 05/11/2020

Credit and Debit cards Many theatres now accept card payment only 1 • Do not use personal credit/debit cards 2 • Try for a debit card on your social account using 2 mandated signatories to obtain cards • Credit cards offer more protection but are difficult to obtain 3 • Trustees must set a clear policy for use which incorporates strict controls 05/11/2020

Social accounts 1 • A social account for theatre visits, outings, etc should have the mandate set up as for the main account. 2 • Having a social account may delay the need to register with the Charity Commission for small U 3 As, 3 • It simplifies reporting of non-charity activities to the committee, the national U 3 A and HMRC 05/11/2020

Arrangement of Trips q If free places are offered, these must be declared and shared q Holidays should be booked through an ABTA bonded Travel Company q Field trips for study groups can be organised by your U 3 A and shown in your books Tour Operators Liability Insurance covers this 05/11/2020

Payments q U 3 A members cannot be paid by any U 3 A q Payments to other charities are normally illegal: donations to a charity with different Charitable Objects is not allowed q Speaker payment, in lieu of a fee or the hire of a hall from a charity, is allowed but must be shown as such in the accounts 05/11/2020

Interest Groups q An Interest Group can be subsidized by the Committee as these are Core U 3 A activities q Self-funding must not imply that the money belongs to the group q Cross subsidies between groups is allowed 05/11/2020

Time to review your subscriptions? When reviewing membership subscriptions, consider: q. Funding one or more members to attend the National Conference and/or AGM q. Direct mailing of Third Age Matters being included without extra payment q. Building up adequate but not excessive reserves – 6 months should be the maximum 05/11/2020

Public Liability Insurance q Capitation fees provide Public Liability insurance cover which protects U 3 A from claims from members or the general public q It only covers groups with unpaid tutors q Dangerous activities: consult National office q Attendance at another U 3 A’s activities is at the discretion of both committees 05/11/2020

Gift Aid q HMRC revised their paperwork in July 2015 q Gift Aid is for donations and therefore membership subscriptions are not allowed for Gift Aid q Most membership charities have arranged their affairs so that Gift Aid is allowed by HMRC 05/11/2020

Advice on Gift Aid Consult www. gov. uk/government/publications/charities Chapter 3. 23 Valuing Donor Benefits Updated 7. 3. 16 Inform HMRC in writing of all the details of your finances Get a written reply from them 05/11/2020

Year End Accounts 05/11/2020

Year end accounts q Income under £ 25, 000 pa: accounts do not need to be submitted to the Charity Commission q Annual income between £ 25, 000 and £ 250, 000 accounts must be submitted on an annual basis q Accounts should be prepared on an Income and Expenditure basis 05/11/2020

Examining the accounts q Accounts need to be examined. q Annual income under £ 250, 000: this should be carried out by an independent person with requisite knowledge and practical experience q Avoid inviting a member or close associate of your U 3 A to examine your accounts q There advantages in matching the Trust’s financial year 05/11/2020

Primary Sources of Information q Charity Commission The Essential Trustee (CC 3) q HM Revenue & Customs HMRC Gift Aid and Practice Chapter 3 q Trustee 1382 Declaration charitycommision/CSD- 05/11/2020

Secondary Sources of Information Third Age Trust publications q. Aims and Guiding Principles q. Committees and Procedures q. Group Leaders (Advice sheet 14) q. More Time to Learn q. Information for Treasurers q. Gift Aid (Advice sheet 3) q. Insurance q. Paid Tutors q. Committee Reference File 05/11/2020

Thanks to the committee members. For without you, U 3 A is nothing! 05/11/2020

CAM/MM 05/11/2020

Paid tutors are not within the U 3 A ethos Groups using them are NOT covered by our Public Liability Insurance If used, the committee must have written assurance from the tutors that they are registered with HMRC for tax and national insurance purposes and that they have public liability insurance Without this assurance you may be considered by law to be an employer. You have no insurance. 05/11/2020

Model Constitution for U 3 As in England Wales 2012 05/11/2020

Interrogating the Constitution 05/11/2020

Clause 3 Charitable purposes The charitable purposes of The U 3 A are: i) to advance education and in particular the education of people not in full time gainful employment who are in their Third Age (being the period of time after the first age of childhood dependence and the second age of full time employment and/or parental responsibility) residing in ………………… *[and its surrounding locality] (See note 1). In this constitution “people in their Third Age” has the meaning set out above. If The U 3 A is registered as a charity in England Wales the charitable purposes of The U 3 A may only be altered with the prior consent of the Charity Commission 05/11/2020

Clause 5 (EXTRACT) MEMBERSHIP Membership of The U 3 A shall be open to individuals who are in their Third Age and are interested in participating in and furthering the work of The U 3 A, provided that they agree to abide by this constitution and any membership conditions properly imposed by the Executive Committee and to pay the annual subscription as determined by the Executive Committee and approved by the membership at an Annual or Special General Meeting. No individual may be admitted to membership if the Executive Committee considers that they do not meet these conditions. 05/11/2020

In pairs: Discuss the “What if. . . ” questions for clauses 4&10 Feed back to your group Agree a set of group answers 05/11/2020

In your groups: What activities, documents and processes need to be in place to ensure that new committee members/trustees feel supported, understand their role and can operate effectively? q q q Share good practice Evaluate what could be added to that good practice Reduce this wisdom to a bullet point plan 05/11/2020

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