charity bulletin - unw · 2020-05-11 · citing longridge on the thames as an example, mark warned...

Charity Group BulletinNovember 2016

UNW’s regular update about topics of financial interest to charities and not for profit organisations

UNW’s Charity Group

Charity Bulletin

Realise yourBig Potential...

The fund was established for Voluntary, Community and Social Enterprise’s (VCSE) who are preparing for investment, plus others that also have designs on securing new contracts.

UNW are well placed, as a Big Potential provider, to assist with all eligible VCSE applications.

There are two routes you can take when applying for a grant: Breakthrough or Advanced.

The Breakthrough option canbe broken down into two categories, preliminary and investment plan grants.

You will undergo a diagnostic and a 1-on-1 with The Social Investment Business (SIB) to investigate your organisation, particularly your finances, people, products and customers. The advanced route is a little different, and is specially

reserved for when a company knows exactly how they will utilise any grant awarded.

As an approved Big Potential provider, UNW will work with you to identify your needs and which gaps within your organisation need filling to help you to become repayable

investment ready. This work will then be used to inform your Big Potential application. If your application is successful we will then work closely with you to deliver on this to ensure your organisation is more robust and ready for investment.

The Big Potential grant fund is a programme designed to raise awareness of the social investment market.

Grant type (Breakthrough)

When is it applicable? Fund threshold

Preliminary Type of social investmentyet to be determined

£20,000 – £30,000

Investment Plan Grants

Social investment planin place

£40,000 – £50,000

Grant type (Advanced)

When is it applicable? Fund threshold

Advanced When an organisation has a clear Social Investment plan in place or needs help securinga contract

£50,000 – £150,000

UNW Charity Group Bulletin November 2016


Interesting resources and information

Support for boards

GET INFORMED offers support, guidance and information to help board members of charities and social enterprises understand the risks and opportunities of social investment.

For more information visit:www.bigsocietycapital.com/get-informed

Bright Futures Fund

Investing in Britain’s children, youth and vulnerable communities, the Bright Futures SITR Fund provides debt to ambitious charities and social enterprises working to improve the lives of children, young people and other vulnerable groups across the UK.

For more information visit:www.brightfuturesfund.co.uk

Northern Impact Fund

Support up to £150k available to early and new start social enterprises. Investment is made up of a blend of loan and grant.

For more information visit:www.thekeyfund.co.uk/new-5-5m-northern-impact-fund-launches-social-enterprises/

Key areas where we provide our expertise include:

• Governance reviews, • Financial reviews of your current

policies and practices,• Financial modelling, covering

both financial and operational aspects of your organisation,

• Strategic business planning,• Identifying and negotiation with

potential funders.

Who can apply?

Breakthrough VCSE organisations based in England who are thinking about taking up social investment and have the ambition to raise over £500,000 of repayable investment

Advanced

VCSE organisations based in England who are thinking about taking on social investment and have the ambition to raise over £500,000 of repayable investment and/or win a contract of £1,000,000 or above

For an informal, no-obligation discussion about Big Potential please contact Maxine Johnston, Corporate Finance Executive on 0191 243 6259 or [email protected]

Access launches £4m fund to help organisations get investment ready

Access – The Foundation for Social Investment has launched the two-year programme, which will be delivered by Social Investment Business.

The Reach Fund will see approved social investors, referred to as Access Points, able to refer charities and social enterprises they want to invest in but who are not yet investment ready.

Charities and social enterprises will receive support from the Access Point to identify the work which will result in them being able to secure investment, and support them with the grant application. Grants of up to £15,000 will be available.

Ten Access Points have been selected initially: Big Issue Invest, CAF Venturesome, Co-operative & Community Finance, FSE Group, Key Fund, Northstar Ventures, Resonance, Social and Sustainable

Capital, Social Finance, and Somerset Community Foundation.

The Reach Fund is being launched at a limited scale to test the model, with an expanded fund with further Access Points to be launched in early 2017.

For more information aboutThe Reach Fund please contact one of the following:

Peter Gilson at Northstar [email protected]

Julie Wake at Key [email protected]

A new £4m grant programme aims to help charities and social enterprises access social investment, by providing funds to organisations who need specific support to be able to take on a loan.

http://www.bigsocietycapital.com/get-informed

http://www.bigsocietycapital.com/get-informed

http://www.brightfuturesfund.co.uk/

http://thekeyfund.co.uk/news/new-5-5m-northern-impact-fund-launches-social-enterprises/




New website to help charities tackle fraud

The website is designed to provide guidance for trustees, staff and volunteers who want more information on tackling fraud in their charity, and includes guidance, tips and case studies, together with links to other organisations tackling charity fraud.

The new website was launched to mark the start of Charity Fraud Awareness Week at the end of October. The campaign reminds charities how to limit their fraud risk and aims to ensure that trustees and charity staff can recognise the warning signs of fraud and offers advice on an effective and proportionate response.

David Kirk, Chairman of the Fraud Advisory Panel, commented:

‘Fraud presents a serious threat to every organisation but unfortunately charities can be particularly vulnerable due to the high number of financial transactions they undertake. Fraud can manifest itself in many different forms and is constantly evolving - which is why we are urging everyone working with charities and not for profit organisations to join together and stop fraud against charities. Charity staff and trustees must stay alert to the risks and understand how to manage them.’

Fraud is a persistent and pressing issue in the modern world, and individuals are not the only ones susceptible. Businesses and charitable organisations can also fall prey to fraud, both internally and externally, with consequences stretching further than to just expense.

By ensuring that client processes and practices are strong and that staff are encouraged to identify and report any suspected fraudulent activity, UNW’s forensic team helps to minimise risk and protect your organisation from the repercussions of fraud.

For more information, or for an informal discussion about our forensic service, please contact Phil Loveday, Forensic Manager on 0191 243 6076 or at [email protected]

The Charity Commission for England and Wales, together with members of the Charity Sector Counter Fraud Group, have launched a new website (www.charitiesagainstfraud.org.uk) to help charities tackle fraud.

UNW Events Programme 2016:

Brexit, what does it mean for the charity sector?

Ironically, many politicians who had campaigned for a leave vote seemed very keen to leave their positions in the days that followed, David Cameron resigned as Prime Minister, and the value of the pound plummeted. It was all a bit of a mess.

It would have taken a gargantuan effort to avoid the topic of Brexit, with the mass media coverage predicting impending doom if the vote to remain did not materialise. Now, almost three months later, what can we predict about the impact of Brexit on the charity sector?

Over 40 representatives from charities and not for profit organisations attended UNW’s recent charity briefing – where James Garbutt, Investment Director at Rathbones, was joined by UNW’s VAT Partner Mark Hetherington in delivering an expert guide into what could happen when the government finally triggers Article 50, and what this may mean for charities here in the North East.

Charity representatives from across the region listened attentively as Mark and James outlined the consequences of the Brexit vote, and shared their expertise on what

action to take from a not for profit perspective. It was evident from those in attendance that clarification regarding funds already resting in accounts was of paramount importance; discipline and realism seemed to be two key words to take from the briefing.

EU Funding

In 2014, 250 UK charities received approximately £220 million in funding from the EU. Despite still officially being a member, it is entirely plausible that this funding will soon disappear. The main focus James highlighted was, however, that it is simply uncertain rather than set in stone. Focussing on one example of a charity within the education sector, James pointed out that they have had to delay plans, due to uncertainty surrounding their EU funding. The EU makes up a

When the United Kingdom voted to leave the European Union on the 23rd of June 2016, one main issue became increasingly apparent; nobody really knew what was going to happen.

James Garbutt of Rathbones (left), with

Mark Hetherington, VAT Partner at UNW (right)

relatively small (0.5%) proportion of the charity sector’s overall funding, but other organisations providing

grants to charity organisations are also likely to be affected by Brexit in some form; regular communication with the appropriate bodies is vital until there is some real clarity on the situation.

Interest Rates

The recession of 2009 saw the Bank of England cut interest rates to 0.5%, and the Brexit vote has led to that being halved again in August. Rates are unlikely to rise in the near future, meaning returns on cash will

remain at rock bottom. Companies will therefore have to apply real risk in the hunt for yield, but this is not

a realistic proposition for those in the charity sector. James advised audience members not to make any rash decisions with funds.

VAT

With around £115 billion provided to the government through VAT each year, there is no chance they will abolish the revenue anytime in the foreseeable future. In the wake of Brexit, without hands tied due to EU law, tinkering with the VAT system is a possibility. Changes would most

likely be minor, however, but there may be better prospect of charities being able to lobby for additional zero-related VAT reliefs.

Citing Longridge on the Thames as an example, Mark warned the audience about setting the bar higher when approaching councils for grant funding. Longridge on the Thames was a case that raised fears that VAT exemptions for charities could be lost. Negotiating for the potential VAT charge to be supplied in addition to the requested grant would be most advisable.

When an audience member asked about the possibility of VAT charges being introduced on charitable donations, Mark reiterated his belief that it would never become a realistic prospect in the UK.

For more information on this topic or for details about UNW’s events programme please contact Anisha Randhawa at [email protected]


With around £115 billion provided to the government through VAT

each year, there is no chance they will abolish the revenue anytime in the foreseeable future.

James Garbutt, Investment Director at Rathbones

The uncertainty currently surrounding Brexit has only amplified this, and a noticeable trend has begun to emerge, as individuals from commercial sector backgrounds transition towards senior financial positions within the not for profit sector. There are reasons for this shift from both perspectives.

An individual from a commercial sector background taking up a position at a not for profit entity could bring an entirely new perspective to the organisation’s strategy, with the knowledge they bring making a huge difference across the board. From the individual’s perspective, moving into the charity sector can be personally fulfilling, and an opportunity to aid a cause close to their heart.

Profit and not for profit organisations have a completely

different mindset in regards to their existence. Companies are single-minded and entirely focussed on making a profit, whereas charities have a split focus: to not only provide for who they exist to serve, but to also appeal to supporters and donors to provide their services. In hiring individuals from the private sector, charities can tap into the benefit of individuals with a broader commercial acumen. Not only will they provide a new perspective on the management of cost base and cashflow arrangements, but also potentially bring a fresh impetus to fundraising opportunities due to their extensive business networks.

UNW boasts a client base that consists of a wide range of charity and not for profit entities. Through our niche strategic talent service, we have sourced many of these organisations with executive, financial and trustee appointments.

Chartered accountant David Parker, who was working as a financial controller for a property auction company, was recently sourced by UNW to become the Newcastle United Foundation’s new finance manager.

In an ever-evolving landscape, this style of appointment may become a regular theme for not for profit entities as they continue to adapt.

Having the right people in place is crucial to the success of any organisation. UNW’s unique strategic talent service works closely with our clients, helping them to recruit and build strong teams, to support sustainable growth.

Our team of specialist consultants take a collaborative approach and harness their extensive networks to ensure they connect the right people to the right roles, in the right organisations.

For more information or to discuss your requirements please contact Dave Bowman, Strategic Talent Senior Manager on 0191 243 6270 or at [email protected]

The financial pressures charities face in the UK in the present day are often onerous. Government cuts, coupled with an increased number of similar organisations lobbying for the same causes, are catalysts that have forced charities to think outside the box to stay competitive.

The shift from profit to not for profit careers.

A sign ofthe times:



Children’s heart charityturns to UNW for financial

management peace of mind

Better known as CHUF, the Newcastle-based charity was set up to provide lifelong support to babies and children from all over the UK who are treated by world-leading specialists at the Freeman Hospital. The unit is one of just two in Britain with the ability to carry out transplants and bridge to transplant operations with very young children. It’s a centre of excellence that treats children and teenagers from Europe too.

Named as the North East Charity Awards charity of the year in 2015, CHUF raises funds for children

treated at the Children’s Heart Unit and their families. The money, which is used to support patients throughout their lives, is generated through generous donations from individual and corporate supporters as well as events such as balls, golf days and sponsored walks.

CHUF’s work is supported by patrons Alan Shearer, Ant and Dec and Sage Group founder Graham Wylie.

UNW works with CHUF to support its back office function, from bookkeeping to payroll, keeping the engine of the charity ticking and

leaving its staff to get on with their vital daily work.

CHUF’s Chief Executive Officer Chris Gray said: “The UNW team is very generous with its time, knowledge and connections. We work with almost every department and each contact is very easy to work with, supportive and understanding.

“CHUF has come a long way in two years. It has been an unbelievable journey for us and those around us. We couldn’t have made the significant progress we have without UNW, who provided exactly the right support at exactly the right time.

“From revolutionising our payroll to helping find the right skills

Helping children born with life-threatening heart conditions to achieve their dreams is the mission of the Children’s Heart Unit Fund.


and experience for the Board, I have absolute confidence in their guidance and know we will be working together for a long time to come.”

UNW helps CHUF with bookkeeping, management accounts, automatic enrolment, payroll, marketing and strategic recruitment.

A key benefit of the arrangement is that Xero, the cloud accounting software used by UNW, enables its trustees to be involved in the finance. The charity is able to tap into and benefit from all areas of UNW’s service offering and the differing expertise found within the firm through the relationship.

UNW’s accounting services partner, Hazel Smith, said: “We provide a full finance function that looks after everything for CHUF, delivering a service they need and can rely upon.

“Once a week we process payments for authorisation. We undertake all accounting transactions, the monthly management accounts and payroll,

and we helped CHUF to put together a budget for the first time this year.

“Our versatility is that we can deliver the whole finance package. Clients outsourcing to us in this way are able to utilize all of the team, for the correct areas, whether that

be bookkeeping, management accounts, payroll and / or strategy.

“Here at UNW we understand that clients may require different levels of

support throughout their business cycle and we are able offer a flexible approach.

“Our relationship with CHUF and the way in which we work with them is a fantastic example of this in action.”

It has been an unbelievable journey for us and those around us.

We couldn’t have made the significant progress we have without UNW, who provided exactly the right support at exactly the right time.

Chris Gray, CEO of CHUF (left) with Hazel Smith (centre) and Anne Hallowell (right) of UNW

Any questions?Contact the UNW Charity Group

A date for your diary...

Charles LinakerCorporate Tax

0191 243 [email protected]

Anne HallowellAudit & Assurance


Andrew WilsonAudit & Assurance


Hazel SmithOutsourced Accounting


Mark HetheringtonVAT


David WardCorporate Tax


Lee MuterEmployment Taxes


Peter NealStrategic Talent


Maxine JohnstonCorporate Finance


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Charity Group briefing:“Corporate Social Responsibility”

Tuesday 13th December 2016

4pm for 4-30pm start, closing at 5.30pm (approx.)

UNW LLP, Citygate, St James’ Boulevard, Newcastle upon Tyne, NE1 4JE

In our final Charity Group briefing of 2016, we will be joined by guest speaker Louise Hunter, Director of Corporate Affairs at Northumbrian Water.

Having worked with Business in the Community prior to joining Northumbrian Water, Louise will be talking about her experience from both sides of the fence of trying to encourage corporate bodies and the voluntary sector to work together for mutual benefit.

Following on from our briefing in the summer, which looked at fundraising from the general public, the focus of this presentation will be on how charities can better equip themselves to tap into the corporate market, what companies might look for in fulfilling their social responsibility goals and what makes successful partnerships between two often very different entities.

For more information or to reserve a place, please contact Anisha Randhawa at UNW: [email protected]


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charity bulletin - unw · 2020-05-11 · citing longridge on the thames as an example, mark warned...

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