College Students’ Associations: what about charitable status?

What does it mean to be a charity?

• Means OSCR has entered you on a public register

• You meet a test in law – the ‘charity test’• You’re run by charity trustees – with legal

duties• Need to keep and supply accounts and

information to OSCR

What are the benefits of being a charity?

• The charity ‘brand’ – public goodwill and trust• Access to grant funding• Tax reliefs – if relevant: gift aid• Rates relief on properties being used for

charitable purposes• Helps get clarity about who’s in charge and how

its run

What do you need to think about?Is it right for you?• Charitable status involves duties and limitations

as well as benefits– Reporting to OSCR every year– Need to get our consent to do certain things– A set of duties for your trustees and members to

comply with – and investigation and consequences if they don’t

Meeting the charity test

To meet the charity test, your association• Must

– only exist for charitable purposes– provide public benefit

• Must not – Let its property be used for non-charitable purposes– Let government ministers control or direct it– Be a political party or set up to further the purposes of a

political party

Meeting the charity test

What does public benefit look like?• Do your association’s activities provide public

benefit?• Are they clearly related to its purposes?• Is there any disbenefit to the public?• Is there any private benefit?• Do you unduly restrict who can get access to your

activities?

It’s the whole picture!

What do you need to think about?A constitution• What kind of organisation are you at the

moment?• What kind of organisation best suits your

needs?• What does your constitution need to cover?• NUS models?

What do you need to think about?AssetsIf your association becomes a charity its assets are

charitable assets, and are protected What kind of assets will it have?• Buildings?• Equipment?• cash?

What kind of risks are involved to these assets?

What do you need to think about?Activities• What things does your association do?• Are they covered by its purposes and

constitution?• What kind of risks are involved? • What other laws do you have to comply with?– Licensing, employment, data protection, equalities

What do you need to think about?Charity trusteesCharity trustees are the people in general

management and control of a charity. • Who are the people currently in charge of your

association?• Is this the way it ought to be?• Have you got the right mix of people?• Do they have the right skills?• If not, where do you get those skills from?

What do you need to think about?Charity trustees – duties What are the four general duties of charity trustees?

• to act in the interests of the charity and put the interests of the charity before any other body

• to ensure that the charity operates in a manner consistent with its purposes

• to act with due care and diligence

• to ensure that the charity complies with the Act and with other relevant legislation

What do you need to think about?Charity trustees – duties the four general duties of charity trustees?

• How often do you get new trustees/committee members/sabbaticals?

• How do you train them?

• Do you have paid staff? How do they relate to the charity trustees? Who’s really in charge?

• Where do they turn for advice?

What do you need to think about?Members• Who are the members of your association?• How do you know who they are?• What’s their role? • What do they get to decide?

What do you need to think about?Relationship to the college• The law gives colleges oversight of student

associations – ‘fair and democratic’, accountable

• Tension between control and independence• What’s the right balance?• Conflicts of interest?

What do you need to think about?Relationship to the college• How does your association relate to the

college?• What say does the college have in your

decision-making?• Who controls assets?• What is the right distance?Worth thinking about scenarios

Martin Tysonmartin.tyson@oscr.org.uk