Cycling UK AGM questions

AndyK
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Re: Cycling UK AGM questions

Postby AndyK » 8 Aug 2020, 10:28am

There are two different issues wrapped up in there.

One is the tax implications for Gift Aid specifically. The rules of Gift Aid set limits on the value of the benefits you can give to a member. If those limits are exceeded, you can't claim Gift Aid on the membership fee. Note that it's the market value of the benefit that is used, not the cost to the charity of providing it. In the case of CUK the biggie there has always been the third-party insurance, which has to be valued based on what it would cost the member to buy a similar insurance policy commercially.

Then there's the question of whether you qualify as a charity at all if most of your time and money goes on benefits to members. Charity Commission document PB1 goes into detail on this. Jonathan is broadly right that there's no specific limit imposed, but to be a charity your purpose must be to benefit the public or "a sufficient section of the public". If a charity were spending more on providing benefits to members than it was on achieving its charitable objects, that would raise awkward questions. Often benefits to members can be justified as part of a charity's purpose, but it's something trustees have to think carefully about. In the extreme, as the CC guide says, "Even if it has an open membership, an organisation that is ‘inward-looking’, supported by its members for the purpose of providing benefits for the members, does not benefit a public class of people and so cannot be a charity."

Jdsk
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Re: Cycling UK AGM questions

Postby Jdsk » 8 Aug 2020, 11:01am

Thanks

Jonathan

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Mick F
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Re: Cycling UK AGM questions

Postby Mick F » 8 Aug 2020, 3:37pm

thirdcrank wrote: A charity is for the benefit of the public, not the membership.
This sounds like the TV Licence debate! :wink:
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PhilW
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Re: Cycling UK AGM questions

Postby PhilW » 9 Aug 2020, 3:38pm

I remain confused over the AGM question. The current Articles do not refer to a "physical" AGM merely that "The Charity must hold an annual general meeting." By deleting that requirement, whilst the current intention might be to hold an AGM by other means, there no longer exists a requirement to do so. In my experience if something is not required, sooner or later, someone will find a reason not to carry it out.

On a slightly different topic, at last year's AGM a motion was passed proposing that a set of Key Performance Indicators (KPI's) be established and reported on. I have searched this year's annual report and the website and whilst there are lots of numbers there is nothing that I recognise as KPI or an attempt at a reporting dashboard. Any ideas?

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gaz
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Re: Cycling UK AGM questions

Postby gaz » 9 Aug 2020, 7:42pm

PhilW wrote:... In my experience if something is not required, sooner or later, someone will find a reason not to carry it out.


11. MEMBERSHIP FEES
The Charity may require Members to pay reasonable Membership fees to the Charity. The Membership fee for each class of Member may not be changed without the approval of the Members in general meeting.

The Trustees have to get the approval of the members to change membership rates, IMO that fairly much guarantees a regularish GM in the future.

At least until that one's changed too :wink: .
2020 : To redundancy ... and beyond!

AndyK
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Re: Cycling UK AGM questions

Postby AndyK » 10 Aug 2020, 2:11pm

PhilW wrote:I remain confused over the AGM question. The current Articles do not refer to a "physical" AGM merely that "The Charity must hold an annual general meeting." By deleting that requirement, whilst the current intention might be to hold an AGM by other means, there no longer exists a requirement to do so. In my experience if something is not required, sooner or later, someone will find a reason not to carry it out.

On a slightly different topic, at last year's AGM a motion was passed proposing that a set of Key Performance Indicators (KPI's) be established and reported on. I have searched this year's annual report and the website and whilst there are lots of numbers there is nothing that I recognise as KPI or an attempt at a reporting dashboard. Any ideas?

If you want to hold an AGM by other means, such as electronically, then it has to say so specifically in the articles. (As I mentioned above, the government has legislated to create an exception to that for this year only, up to the end of September.) However there are different ways of doing things. Trustee elections happen by postal/online vote so other matters could be decided that way in the future.

The KPIs have not been forgotten. It's just taken a long time (and a lot of discussion in board meetings and elsewhere) to get to the point where we're happy we have a sensible set of KPIs that can be measured and reported on effectively and provide fair indicators of progress (or otherwise). Nearly there now, I think. Those were useful discussions in themselves, as to produce good KPIs you have to ask serious questions about what you're trying to achieve and how you'll know when you've achieved it, and how that relates back to the day-to-day activities of the organisation.