Legal Newsletter

Welcome to the inaugural edition of RCVDA Legal

The legal e-newsletter of the Redcar and Cleveland Voluntary Development Agency

In this edition we introduce Nick Dent, our recently appointed Legal Consultant, and take a look at the Charitable Incorporated Organisation, the new legal form for a charity, and also look at the need for effective data protection.

Charitable Incorporated Organisations

My arrival at RCVDA seems to have coincided very neatly with the introduction of Charitable Incorporated Organisations, or CIOs.

Most charity lawyers are expressing a sigh of relief that CIOs have finally arrived, although as far as I am concerned CIOs and I have arrived on the same bus!

So what is a CIO? Well, it is a new legal form for a charity. The intention is to create a new type of legal structure that can provide some of the benefits of being a limited company but without some of its accompanying burdens and responsibilities.

It is therefore an incorporated form of charity which is not a company; it only has to register with the Charity Commission and not Companies House (thereby excusing the need for dual regulation); it is only created once it is registered by the Commission; and it can enter into contracts in its own right and its trustees will normally have limited or no liability for the debts of the CIO.

There are two types of CIO: Foundation and Association. Foundation has a closed membership and is by far the most popular type to date of the 44 CIOs registered as at 7 March 2013.

It’s a brand new structure and charity lawyers are eagerly anticipating how they will develop…

Who Am I?

Although new to the sector, I am by no means new to the law!

My name is Nick Dent and I am Middlesbrough born and bred.

The opportunity to practice law was first presented to me in 1986 by Jacksons Monk & Rowe (later to be immortalised in an Elvis Costello song that still adorns my record collection!) in Queen’s Square.

I was initially involved with personal injury claims (the “slippers and trippers”) although a partner recognised my potential and introduced me to the world of commercial litigation and insolvency.

There have been many diversions in my 27 years in the law ~ including one partner who frequently asked that I board “motor vessels” (they don’t like to be called ships!) in Teesport because the Master wished to lodge a note of protest against possible damage to his cargo as a result of bad weather ~ but dispute resolution has remained a staple and at times exhilarating area of law in which to practice and I have been rewarded with some notable decisions and moments within the court room.

Home study rewarded me with a professional qualification in 1993 and I am proud to be a Fellow of the Chartered Institute of Legal Executives (www.cilex.org.uk).

I have advised within the Citizens Advice service and I have been Compliance Officer for a credit union, contributing to governance and compliance with FSA requirements.

I am a member of the Charity Law Association and I very much look forward to working with community and voluntary sector organisations in the next stage of my career.

My full professional profile can be viewed on LinkedIn at http://uk.linkedin.com/pub/nick-dent/36/b9a/785/

Data Protection: Are Charities Exempt?

Charities are not necessarily exempt from data protection regulations. There is only a relatively narrow exemption.

So, if you handle personal information about individuals and cannot secure an exemption, you have a number of legal obligations to protect that information under the Data Protection Act 1998.

There are eight principles to the Data Protection Act:

• personal data shall be processed fairly and lawfully;
• personal data shall be obtained only for one or more specified and lawful purposes, and shall not be further processed in any manner incompatible with that purpose or those purposes;
• personal data shall be adequate, relevant, and not excessive in relation to the purpose or purposes for which they are processed;
• personal data shall be accurate and, where necessary, kept up to date;
• personal data processed for any purpose or purposes shall not be kept for longer than is necessary for that purpose or those purposes;
• personal data shall be processed in accordance with the rights of data subjects under this Act;
• appropriate technical and organisational measures shall be taken against unauthorised or unlawful processing of personal data and against accidental loss or destruction of, or damage to, personal data; and
• personal data shall not be transferred to a country or territory outside the European Economic Area unless that country or territory ensures an adequate level of protection for the rights and freedoms of data subjects in relation to the processing of personal data. There are a number of security measures that can be adapted to protect the personal data an organisation might hold.

It is important the law surrounding data protection is applied correctly. Since April 2010 the Information Commissioner’s Office has had the power to issue monetary penalty notices for serious breaches of the Data Protection Act. Although less than 40 fines have since been imposed, the ICO is becoming more robust in the sanctions it imposes. In November 2012 and February 2013 the first penalties were levied on charities: two charities were fined £70000.00 and £150000.00 respectively for breaches of the Data Protection Act.

Get Social!

The Charity Commission, the independent regulator of charities in England and Wales, is inviting trustees, charities, and charity advisors to attend its next public meeting on Tuesday 26 March 2013 in Newcastle upon Tyne.

The event will be opened by the Chair of the Commission, William Shawcross, and will continue with an overview of the Commission’s work by its Chief Executive, Sam Younger.

The remainder of the morning event will see a range of topics covered beginning with an update on Charitable Incorporated Organisations and what trustees need to do when changing governing documents and charitable objects. There will also be an overview of the Commission’s Partnership strategy, following the launch of the Partnership Directory in December.

The last section of the meeting will look at case studies to explore what trustees should do to avoid serious problems within their charity and attendees will have the opportunity to discuss these issues.

The meeting, which is free to attend, is taking place at The Castlegate Centre, Melbourne Street, Newcastle upon Tyne, NE1 2JQ, between 9:30am and 1:00pm. Attendees are then invited to stay for a sandwich lunch.

To view the full meeting agenda please visit the Charity Commission website.

To confirm your attendance, please e-mail: [email protected].