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Village Halls Handbook

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Village Halls Handbook VILLAGE HALLS HANDBOOK For the Scottish Borders November 2011 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 8 SECTION TWO: Managing People 2.1 Employment of Staff 10 2.2 Volunteers 10 2.3 HR Policies 10 SECTION THREE: Managing Money 3.1 Annual Monitoring and Accounts 11 3.2 Water charges, rates and utilities 12 3.3 VAT and Charities 13 3.4 Fundraising 14 SECTION FOUR: Managing Resources 4.1 Record-keeping 15 4.2 Insurance 16 4.3 Maintaining your Hall’s Facilities: kitchen, disabled access etc 17 4.4 Marketing your Hall 20 SECTION FIVE: Working with users 5.1 Booking Procedures: maximum occupancy; food safety clause 21 5.2 Hire Charges 22 5.3 Day Book and Hall Users Folder: statistics, instructions for use 23 5.4 Organising events 23 SECTION SIX: Legislation and Regulation 6.1 Licences: liquor, entertainment, music, raffles, marriage, film 24 6.2 Food Safety Management 28 6.3 Health & Safety: risk assessment, fire, asbestos, electrical safety 29 6.4 Oil tanks 31 6.5 Policies: equal opportunities, environment, health& safety, HR, PVG 32 1st edition published May 2007 Revised September 2011 Produced by Scottish Borders Community Development Company (operating as The Bridge) Registered in Scotland as a Company Limited by Guarantee No. 305830: Scottish Charity No. SC037646 Registered and Head Office: 6a Roxburgh Street, Galashiels, TD1 1PF www.the-bridge.uk.net Some further information added October 2011 by Berwickshire Association for Voluntary Service (BAVS). Registered in Scotland as a Company Limited by Guarantee No: 381152. Scottish Charity No. SC016309. 1 Introduction Rural village halls in the Scottish Borders are grouped into four Federations of Village and Community Halls, all serviced by staff from their local Council for Voluntary Service. 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: • Berwickshire Federation of Village and Community Halls c/o Berwickshire Association for Voluntary Service Platform 1, Station Road, DUNS. TD11 3HS Tel: 01361 883137 Email: [email protected] • 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: [email protected] • 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: [email protected] • 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: [email protected] As well as the sources of information credited within this handbook, information has also been extracted from materials by 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: www.scvo.org.uk/villagehalls or contact your local CVS listed above. 2 SECTION ONE: Governance 1.1 Legal Structures There are several different ways in which a voluntary organisation can be set up. However, the most common structures for village halls are Unincorporated, Trust or Company Ltd by Guarantee. A new legal structure – 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). • Unincorporated An unincorporated association is the simplest structure for a group to have. It has a set of rules (usually called a constitution) agreed by its members. There are no legal requirements on how it operates through if it wants to be recognised as a charity, the Inland Revenue will lay down certain conditions. An unincorporated association is not a legal entity and cannot sign legal documents in its own right. This has to be done by individuals (usually the current office bearers, with the responsibility passing to their successors). There is very little case law but it is likely that in the event of a dispute, the signatories would be held liable and it would be up to them to claim from other committee members. An unincorporated association is a two-tier organisation with a membership and management committee responsible for running the organisation. Technically, an unincorporated association cannot take out membership of another organisation. This should be done in the name of appointed representatives. • 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). The Trust is a single-tier organisation where trustees all sign the deed of trust and where they replace themselves. There is no wider membership and no need for elections. 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) 3 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, without the burden of reporting to two regulators. It is regulated only by the OSCR and is particularly relevant for organisations owning or leasing property or employing staff. SCIOs can be set up as singe-tier (similar to a Trust where the trustees are the only members) or two-tier (similar to an Unincorporated or Company Limited by Guarantee organisation, where there are members who may or may not be trustees). This choice is available to suit whichever form is most appropriate for the organisation. OSCR publishes a comprehensive guide to becoming a SCIO. Further information and support, advice on drawing up a constitution or 3 Memorandum and Articles of Association, along with support on converting to a SCIO, is available in your local CVS office. 1.2 Charitable 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 3.3 VAT and Charities) To become a charity, there is a five part Charity Test which organisations must successfully meet: 1. Its purpose must match one or more of the charitable purposes laid down by the Charities Act. 2. It must provide public benefit. 3. It must be independent from government. 4. Its constitution must not permit it to distribute any of its property to a non-charitable purpose, (i.e. do something not in accordance with its charitable aims). 5. It must not be a political party or set up to advance a political party. Further information and support to apply for charity status can be provided through 3 your local CVS office. 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.
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