VILLAGE HALLS

HANDBOOK

For the Scottish Borders

September 2011

Produced by

THE BRIDGE

Village Halls Handbook
Page

Introduction

/ 2
SECTION ONE: Governance
1.1 Legal structures / 3
1.2 Charitable Status / 4
1.3 Role of Committees and Office Bearers / 7
SECTION TWO: Managing People

2.1 Employment of Staff

/ 9

2.2 Volunteers

/ 9

2.3 HR Policies

/ 9

SECTION THREE: Managing Money

3.1 Annual Monitoring and Accounts / 10

3.2 Water charges, rates and utilities

/ 11

3.3 VAT and Charities

/ 12

3.4 Fundraising

/ 13

SECTION FOUR: Managing Resources

4.1 Record-keeping / 14
4.2 Insurance / 15
4.3 Maintaining your Hall’s Facilities: kitchen, disabled access etc / 16

4.4 Marketing your Hall

/ 19

SECTION FIVE: Working with users

5.1 Booking Procedures: maximum occupancy; food safety clause / 20
5.2 Hire Charges / 21

5.3 Day Book and Hall Users Folder: statistics, instructions for use

/ 22

5.4 Organising events

/ 22

SECTION SIX: Legislation and Regulation

6.1 Licences: liquor, entertainment, music, raffles, marriage, film / 23
6.2 Food Safety Management / 27
6.3 Health & Safety: risk assessment, fire, asbestos, electrical safety / 28
6.4 Oil tanks / 30
6.5 Policies: equal opportunities, environment, health& safety, HR, PVG / 31

1st edition published May 2007

revised September 2011

Introduction

This handbook has been prepared by staff from The Bridge, the Council for Voluntary Service which provides support to village and community halls throughout the Scottish Borders (except in Berwickshire). It is available in hard copy from the offices below or on our website:

Within the geographical area covered by The Bridge there are three Federations of Village and Community Halls, all serviced by staff from the area office of The Bridge. The Federations exist to provide support to individual halls within their area; to co-ordinate local activities and to liaise with the local authority and other outside bodies on behalf of the halls.

For further information about anything in this handbook or about the running of village and community halls contact:

  • Central Borders Federation of Village and Community Halls

c/o The Bridge - Central Borders

6 Roxburgh Street, Galashiels, TD1 1PF

Tel: 01896 755370

Fax: 01896 759661

E-mail:

  • Peeblesshire Federation of Village and Community Halls

c/o The Bridge - Tweeddale

Volunteer Resource Centre, School Brae, High Street, Peebles,

EH45 8AL

Tel: 01721 723123

Fax: 01721 729435

E-mail:

  • Roxburgh Federation of Village and Community Halls

c/o The Bridge - Roxburgh

1 Veitch’s Close, Castlegate, Jedburgh, TD8 6AY

Tel: 01835 863554

Fax: 01835 864456

E-mail:

As well as the sources of information credited within this handbook, information has also been extracted from the Scottish Council of Voluntary Organisations.

NOTE:

This Handbook has been laid out to complement the various sections of the KeyStone quality award scheme for people who manage village halls and community buildings. The award scheme has been designed to give information and support and can also be used as a management tool; taking part in the award scheme is entirely voluntary. For more information including KeyStone, visit this website:

SECTION ONE: Governance

1.1Legal Structures

There areseveral different ways in which a voluntary organisation can be set up. However, the most common structures for village halls are a Trust or Company Ltd by Guarantee. A new legal structure – a Scottish Charitable Incorporated Organisation (SCIO) – became available in April 2011 and is considered an appropriate structure for organisations with property. With the exception of the SCIO, charitable status is a subject to a separate application to the Office of the Charity Regulator (OSCR) (see Section 1.2 Charity Status).

  • Trusts

Many village halls in the Scottish Borders were set up under a Deed of Trust. The most common model Deed of Trust for village halls in the Scottish Borders places the ownership of the property in trust with nominated individuals on behalf of the community, and appoints a management committee to manage the day-to-day operation of the Hall. Information on how the management committee is set up (representatives of user groups, elected individuals living within the area of benefit) and managed is generally included in the Trust document, which is then viewed as the organisation’s constitution. This legal structure does not provide limited liability, and Trustee Indemnity Insurance is recommended (see Section 4.2 Insurance). Generally, the Trustees themselves appoint new Trustees, or are identified by their position ‘ex officio’ (i.e. perhaps the local Councillor, Headteacher, Minister etc). It is important that the Trustees are aware of their responsibilities and accept them, especially any new individuals taking up the role. In particular, any capital projects will require the Trustees’ approval.

  • Company Limited by Guarantee

Until now, new community facilities being set up were more likely to be formed as a company limited by guarantee – an incorporated body. A Hall with this legal structure has a legal identity separate from its membership and can therefore enter into contracts, hold property and employ people in its own name. In addition, the members of the company will not be liable for the company’s debts beyond the nominal amount that they guarantee to pay under the memorandum of association (usually £1). A company limited by guarantee is a two tier organisation with a membership from whom a board of directors is appointed. Regulated by Companies House, there are strict deadlines for submitting information, with financial penalties for non compliance. The governing document (similar to a constitution) is known as the Memorandum and Articles of Association. Charity status is recommended for tax relief; this is separate from the legal structure and is regulated by OSCR.

  • Scottish Charitable Incorporated Organisation (SCIO)

This new type of organisation, introduced in April 2011,gives a charity the benefits and legal protection of an incorporated body - a legal identity and limited liability of its members - as well as confirming charity status. It is regulated only by the OSCRand is particularly relevant for organisations owning or leasing property or employing staff. OSCR publishes a comprehensive guide to becoming a SCIO.

Further information and support, including conversion to SCIO, is available in the area offices of The Bridge.

1.2Charitable Status

It is advisable for all village halls to have charitable status. The main advantages are:

  • Tax relief on surpluses, bank interest, capital gains;
  • Far greater range of potential sources of funding as most grant-making trusts will only fund registered charities;
  • Ability to receive donations under Gift Aid (if registered for this);
  • Rates relief on any property owned or leased
  • VAT concessions (see Section 3.3VAT and Charities)

Further information and support to apply for charity status can be provided through your local area office of The Bridge.

The Office of the Scottish Charity Regulator (OSCR) is the body responsible for granting charitable status and regulating charities in Scotland. It can be contacted at:

2nd Floor, Quadrant House, 9 Riverside Drive, Dundee.

DD1 4NY.

Tel 01382 220446 email: website:

OSCR was set up underThe Charities and Trustee Investment (Scotland) Act2005, which has introduced a wide range of Regulations.

There are 16 charitable purposes identified by the Act. Village halls are likely to meet the ninth charitable purpose which is “the provision of recreational facilities” which are “available to the public at large” but they must also be able to prove that they are providing public benefit.

Charity Trustee Duties

Anyone involved in the management or control of a charity is classed as a charity trustee – i.e. Board members or Hall Management Committee members as well as Trustees identified in the Deed of Trust. A charity trustee must:

  • Act in the interest of the charity: trustees should put the interests of their charity before their own interests or those of any other person or organisation.
  • Operate in a manner consistent with the charity’s purposes: trustees should carry out their duties in accordance with their governing document.
  • Act with due care and diligence: trustees should take such care of their charity’s affairs as is reasonable to expect of someone who is managing the affairs of another person.
  • Ensure that the charity complies with the provisions of the 2005 Actand other relevant legislation.

Full information on the specific duties of a charity trustee is available on the OSCR website. Please note that the names of the charity trustees, and the date they were appointed, has to be given on the annual monitoring form and in the annual report and accounts.
Remuneration

Charity trustees cannot be paid for doing the work of a trustee but they can receive out of pocket expenses for reasonable expenditure incurred.

However, they can be remunerated (in money or in kind) if certain conditions set out in the Act are met. If in doubt, seek advice.

The conditions which allow remuneration are:

  • the maximum amount of the remuneration is set out in a written agreement;
  • the maximum amount of the remuneration is reasonable in the circumstances;
  • the charity trustees are satisfied, before entering the agreement, that it is in the interest of the charity for that person to provide those services for that amount;
  • immediately after entering into the agreement, less than half of the total number of charity trustees are directly or indirectly remunerated;
  • the charity’s governing document does not prohibit the remuneration of charity trustees.

Common examples of remuneration:

  • When a treasurer is paid an honorarium. This should only be paid for any work that is over and above what would normally be expected of a trustee eg if there is an element of book-keeping as well as overseeing the finances of the organisation.
  • When a Hall committee member or someone closely related to them provides a service such as cleaning, or electrical/plumbing services.

Examples of good practice:

  • Adopt a charity trustee remuneration policy and procedures which ensure any remuneration complies with the conditions set out in the Act;
  • Establish a register of trustees’ interests;
  • Consult professional bodies before agreeing remuneration;
  • Obtain at least two separate quotes for services;
  • Clearly minute the decision that remuneration of a particular charity trustee is in the charity’s interest.

Trustee Indemnity Insurance

Charities are permitted to use charity funds to provide all their charity trustees with indemnity insurance.

Disqualification from being a Charity Trustee

A person is not allowed to be a charity trustee if he/she:

•Has been convicted of an offence involving dishonesty

•Has been convicted of an offence under the Charities and Trustee Investment (Scotland) Act 2005

•Is an undischarged bankrupt

•Has been removed/disqualified from being in management of a charity under legislation.

Changes to a charity’s constitution

Check your governing document to make sure that you are operating in line with its terms.

If the proposed changes are allowed by the constitution/governing document, they will either require the prior consent of OSCR or to be notified to OSCR within 3 months.

Changes requiring prior consent:

•Changes to the name of the charity

•Amending its charitable purposes

•Amalgamating with another body

•Winding up or dissolving.

Changes requiring to be notified:

•Changes to the constitution/governing document other than the name or charitable purposes;

•Contact details for the charity

•Any other changes to details recorded in the Charity Register

•Changes that have required and been granted consent, once they have been made.

Charity Reorganisation Scheme

If a charity wishes to do anything that is not allowed/covered by the constitution/Deed of Trust, and there is no power to amend it, then a charity reorganisation schemewill be necessary (available via OSCR) to make the required changes.

For example, if you are thinking of becoming a SCIO, you must have the right to wind up your organisation before it can be transferred to the new legal structure. If you don’t have a winding up/dissolution clause, you will have to go through the re-organisation process to change the terms of your Deed of Trust/constitution.

Contact your local office of The Bridge for support.

References to charity status

Charitiesmuststate the following information on documents issued or signed on their behalf:

  • the charity’s name, as entered in the Register
  • any other name by which the charity is commonly known
  • the words “Scottish charity” or “registered Scottish charity” and the Scottish Charity Number allocated to it at the time of registration.

The Regulations apply to all external documents and communications, as follows:

  • business letters or emails;
  • printed advertisements, public notices or official published documents;
  • documents which request the donation of money or property;
  • orders for goods; invoices and receipts;
  • annual accounts;
  • promotional material aimed at raising the charity’s profile;
  • legal documents;
  • bills of exchange (not including cheques, although this may be introduced shortly).

1.3Role of committees and office bearers

Whether or not the Village Hall is a charity, it is good practice for committee members to follow their guidelines. Under the Charities and Trustees Investment (Scotland) Act 2005, all those who are responsible for the general control and management of a charity ie committee members or board of directors must: act in the interests of the charity and

  • ensure that the charity does what it was set up to do
  • act with care and diligence that it is reasonable to expect of someone who is managing the affairs of another person
  • where there could be a conflict of interest, put the interests of the charity before those of the conflicting party eg the organisation which they represent or, if this is not possible, take no part in the discussion or decision making.

This last clause is particularly relevant for village hall committees where people are often nominated by user groups to represent that group. However, while attending village hall committee meetings, they must put the interests of the village hall first.

In general, the Hall committee has responsibility to ensure that:

  • the organisation works within the terms of its governing document eg the constitution
  • the financial affairs of the hall are in order
  • the fabric of the hall is maintained
  • the hall and users are properly insured
  • all appropriate licences are in place
  • all necessary policies and procedures are in place
  • the organisation acts as a responsible employer (if appropriate)
  • new activities and projects are developed in keeping with the wishes of the local community.

Role of Chairman:

Prior to meetings, the chairman should:

•liaise with the secretary and others to draw up the agenda

•be well prepared on the topics to be discussed

•be aware of the impact of the governing document on any agenda items

•ensure that any actions delegated at the previous meeting have been carried out.

At the meeting the chairman should:

•ensure that the meeting starts on time

•introduce any new members and make sure that they feel welcome

•encourage all members to participate

•ensure that all discussion is relevant

•ensure that any voting is according to the rules or standing orders

•end all agenda items by drawing discussion to a conclusion, ensuring that decisions have been made and minuted, and that everyone knows what action will be taken and by whom.

Between meetings, the chairman will often be seen as the public face of the organisation and therefore needs to be clear about the remit of the organisation and the important issues of the moment. The chairman will sometimes be required to make emergency decisions between meetings but this should be done in consultation with other committee members and such decisions should be ratified and minuted at the next appropriate meeting.

Role of Secretary:

The secretary is responsible for the administration of the organisation such as:

  • keeping an up-to-date register of members (or knowing who is eligible to vote)
  • keeping an up to date record of Trustees/committee members, including dates of resignation/new members joining the committee.
  • keeping the minute book and all other relevant papers
  • the organisation of all meetings
  • dealing with correspondence.

Prior to meetings, the secretary should:

  • ensure that the venue is booked
  • notify all those eligible to attend of the date, time and place of the meeting
  • draw up the agenda in consultation with the chairman and others and distribute with the calling notice.

At the meeting, the secretary should take the minutes of the meeting, which should include:

  • a record of those present and a note of any apologies
  • the approval of the minutes of the previous meeting
  • a record of the financial information reported
  • an accurate record of any decisions taken and who is responsible for any actions resulting from those decisions
  • the date of the next meeting.

After the meeting the secretary should:

  • draft the minutes for approval by the chairman of the meeting prior to circulation to the members
  • write letters, obtain information and take any other action as decided by the committee.

Role of the Treasurer:

The treasurer does not have sole responsibility for the financial affairs of the organisation. The management committee has collective responsibility, but it is the treasurer’s role to provide information to other committee members in such a way that they can understand the financial position and make reasoned decisions when necessary. Most of the treasurer’s work will be done outwith committee meetings and will involve: