SRC Governance Options in a nutshell

WHY

The law has changed. We can no longer continue to operate as an exempt charity, this is due to the 2006 Charities Act

OPTIONS

  1. Operate as an independent charity and register with the Charities Commission
  2. Merge with the University and become a Durham Student Organisation

HOW WE DO IT

Option 1 – Operate as an independent charity / Option 2 – Merge with the university
  1. Create new Charities Commission compliant constitution.
  2. Register with the Charities Commission.
  3. Find a trustee board & restructure our democracy / decision process as needed.
  4. Start operating as a charity.
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  1. Create governing documents.
  2. Transfer assets to the university.
  3. Start operating under the university as a Student Organisation.

3 BIG PROS

Option 1 – Operate as an independent charity / Option 2- Merge with the university
  1. We have full ‘democratic’ independence as a students union
  2. We would have a well defined legal position which could only be altered if students explicitly wanted it.
  3. As a charity it may be easier to elicit donations from people and organisations.
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  1. We save up to £10,000 extra per year through the cost of insurance and accountancy that we would have under the charity route.
  2. The University takes all liabilities away from the SRC but gives us full operational independence to continue to do what we do.

3 BIG CONS

Option 1 – Operate as an independent charity / Option 2- Merge with the university
  1. We have to adhere to the letter of the law; there is no room for mistakes. Every single trustee and SRC officer will be personally liable for their mistakes in.
  2. Financial cost: we would have to pay up to £10,000 more to be a charity than if we merge with the university due to insurance and accountancy costs.
  3. Bureaucratic Burden: Finances and affairs will need to be examined much more carefully in order to be compliant to the rules set by the charities commission. This could be a lot to expect from exec members who are not sabbatical.
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  1. We would no longer be a students union in the eyes of the law but would become a Durham Students Organisation.
  2. The university may only modify the framework with the agreement of SRC. However, in extreme circumstances the university council may modify the framework on the students behalf.
  3. There is a perceived danger that comes from the fact that the university will legally own our physical assets.

HOW DO WE GET OUT?

Option 1 – Operate as an independent charity / Option 2- Merge with the university
Assuming that we do not have outstanding debts, the University will take us. It is unknown what will happen if we ‘mess up’ while registered as a charity and then request to merge with the University as a ‘get out of this mess’ card. / We would be able to decide after two years that we could remove ourselves from the University governing structure. This time frame has been decided to allow the University to improve the services it provides for the SRC.