Monthly Archive: September 2015

Who will handle the major steps in the TDS process that is very easy to perform?

It says that, where there is already a power of remuneration in the charitys deed, that power may be used but the leaflet adds that the deeds terms must be adhered to and strictly construed. Where there is no express power in the deed, the trustees will need to apply to CC (making out a detailed case) for CCs authority to add such a power. The leaflet says that, in exercising their power to authorise remuneration in individual cases, CC apply the guidelines that have been laid down by the courts: they take into account a charitys size.

Structure and the way it operates and the administrative obligations that those factors place upon the charitys trustees. CC also consider the degree of the trustees involvement in the day to day running of the charity, the specialist nature of the skills required and the comparative costs of obtaining specialist skills from outside the trustee body. Leaflet CC7 also says that there are payments other than ex gratia payments which CC may need to authorise.The trustees should be told either that payments must cease until authority for them to continue is given and, if a sufficient case is made out.

CCs internal guidance for their staff on the remuneration of trustees was, at the time of the events in question, contained in their Rental Property Depreciation policy instruction B15. That guidance says that in the absence of express provision in the charitys governing document the Commissioners prior authority is required before payment can properly be made. In pursuit of such authority a charity needs to show that payment is both necessary for the charitys good administration and reasonable in relation to the service rendered, and the income of the charity.

The guidance also says that any action of trustees in paying remuneration unauthorised by the charitys deed constitutes a breach of trust and might be grounds for CC to start an inquiry under section 8 of the 1993 Act.The guidance goes on to say that if, following inquiry, CCs Monitoring and Investigation Division consider that the trustees may be able to make out a case for the remuneration to continue, the papers should be passed to CCs Charities Support Division for action.