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In the current circumstances we know a lot of charities are having to change the way they operate to ensure fundraising and funding can continue through the impact of Covid-19.
Our charity department answer some key questions for anyone associated with a charity, looking for clarification on what the best action is for these organisations during this period of uncertainty.
Please don’t hesitate to get in touch directly should you need any support or guidance during this time.
This would usually classify as restricted income. We would encourage charities in this situation to communicate directly with the funder, as soon as possible.
It is important to discuss the exact position of the programme with them to be able to assess whether it can ever be undertaken in the future or whether it could be delivered in an alternative format. Following this, the funder would then be in a position to decide whether they are happy for these funds to be deferred, opened up to be utilised on other areas or potentially returned to them.
Retail, Hospitality and Leisure facilities are entitled to rate free period. In addition, grants available are as follows:
In addition, if the organisation is currently entitled to Small Business Rates Relief (SBRR), and are receiving £3,000, then they will automatically receive £10,000. There is significant lobbying being undertaken to increase the £51,000 top rateable value.
We do not believe there is anything stipulated in relation to pausing utilities, however, we believe some clients are discussing this further and are having some success.
According to government guidance, any volunteer work undertaken by employees must not ‘provide services to or generate revenue for, or on behalf of your organisation or a linked or associated organisation’.
As such, any volunteering would have to take place with a separate organisation. The charity can agree to assist furloughed employees by helping them find volunteering opportunities, but this must be in line with the public health guidelines.
Furloughed workers are able to undertake training, but the government guidelines do not permit the employee to perform any revenue generating work or supply services to the business.
The examples of filing VAT returns and running payroll come under the umbrella of providing services and therefore any provision of these services would mean that the employer is not permitted to receive the grant for this employee. In respect of training, it is important to note that the employee would need to be paid the National Minimum Wage as they are still active. This may require the employer to ‘top up’ their pay.