Why local authorities need to tread carefully when funding charities
A Charity Commission intervention and a recent VAT tribunal case highlight the need for local authorities to consider their legal position carefully when giving funding to charities.
On 25 February 2014, the Charity Commission published an operational compliance report into Fairfield (Croydon). It decided to investigate after reports in local news blogs suggested that Croydon Council was trying to take over the charity. The charity maintains and manages Fairfield Halls, an
entertainment venue in Croydon. The council owns Fairfield Halls but leases it to the charity. It then gives the charity a grant that covers the cost of the rent.
It turned out that Croydon Council was planning to invest significant funds in refurbishing Fairfield Halls and wanted to make sure that its funding would be used to the best effect. The council had therefore suggested that it be admitted as a member of the charity and given a 75 per cent voting right at member meetings, thereby effectively turning the charity into a local-authority-controlled company…
Click on the link below to read the rest of the Walker Morris briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Looking at barriers to the development of effective cross-border e-commerce in the EU.
Which? has lodged a super-complaint in relation to concerns about misleading and unclear pricing practices in the groceries sector.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.