This note explains the changes that we are proposing to make to the legal structure of the charity that operates, and holds the assets for, the village hall.
What changes are being proposed?
The village hall is currently operated by a registered charitable trust (“Trust”). We propose to transition to a charitable incorporated organisation (“CIO”), which is a different type of registered charity.
What impact will the changes have upon users of the village hall?
The intention is that there should be no impact to users of the village hall, aside from minor administrative changes, such as a change of bank details.
The Charitable Objects (purpose) of the new CIO reflect those of the Trust, with minor wording changes to reflect current terminology and legislation. Trustees will still be obliged to operate the village hall in line with these Charitable Objects.
Why are the changes being proposed?
There are several factors that have led the trustees to recommend this change.
a)Simpler contractual arrangements: A charitable trust cannot enter into contracts directly. Therefore, trustees are usually required to enter into contracts on its behalf. For example, the lease on the premises is held by three ‘holding trustees’ on behalf of the Trust. This creates administrative overhead when trustees change, and in the case of the property lease, incurs legal costs associated with assigning the lease and registering the change with the Land Registry.
b)Easier to employ staff: The trustees wish to ensure that the village hall is on a stable footing to adapt to changes in how it is used, and wider societal changes. The village hall is well used, but in common with other groups, has found attracting volunteers a growing challenge. Therefore, it is plausible that in due course it may be desirable to employ a part-time staff member. It is simpler to employ someone as a CIO, than as a trust.
c)Easier to attract trustees: The current structure has been a barrier to trustee recruitment. By adopting simpler governance with clearer responsibilities, we hope it will be easier to recruit new trustees.
Why now?
The trustees believe that now is the right time to make these changes:
a)We need to update the lease as the existing ‘holding trustees’ wish to step down.
b)We need to make updates to the constitution to reflect current arrangements.
Whilst these changes could be made without changing the structure, each would incur effort and costs, without bringing the benefits of incorporation outlined above. Moving to a CIO structure removes the need for holding trustees and allows us to adopt the current Charity Commission approved model constitution for village halls.
What does the change involve?
Simplistically this involves:
(1)registering the new CIO
(2)transferring the assets and undertakings from the Trust to the CIO
(3)closing the Trust
What are the assets and undertakings to be transferred?
This is all the assets and undertakings of the charity, which includes:
-The leasehold on the premises
-Cash in bank
-Other assets, primarily the furniture and equipment in the hall
-All hire agreements
-All contracts for services and utilities.
What are the premises being transferred?
The building and land known as Escrick and Deighton Village Hall, as registered with the Land Registry title NYK370886, and shown on the plan below.
Further questions
If you have any questions about the change, please contact the treasurer via email to treasurer@escrickvillagehall.com or by post to Escrick and Deighton Village Hall, Main St, Escrick, YO19 6LQ.