Knowledge Centre

1.1 Operate the organisation according to its rules.

Your organisation should have some form of governing document, setting out what its purpose is and how it operates: for example, how decisions are taken. In many cases a constitution is a legal requirement (eg if you are a limited company).

If your organisation is a charity, you must comply with charity law: for example, ensuring that funds are used only for the charitable purposes set out in your governing document.

If your organisation is a company, you must comply with company law: for example, making a company annual return to Companies House.

1.2 Act honestly, responsibly and carefully.

You have duties to the organisation, to the people who use its services and to any employees.

You must act in the interests of the organisation, not your own personal interests.

Key steps you should take include:

• Ensuring that the organisation is financially solvent, and that money and other assets are properly looked after.
• Identifying and managing potential risks: for example, drawing up proper policies for how the organisation manages key issues, and ensuring that volunteers and employees have any training they need.
• Taking professional advice when it is needed.

1.3 Ensure that you are protected against personal liability.

In some circumstances, you could be held personally accountable for what the organisation has done (or failed to do). This is always a risk if the organisation is unincorporated.

If your organisation becomes insolvent, you could be personally liable for the organisation's debts. This can happen if the organisation is not a company, or if you are a company director and allow the organisation to carry on trading with no reasonable chance of avoiding insolvency, or if you act fraudulently.

Acting honestly, responsibly and carefully helps to protect you against personal liability.

It is possible to obtain insurance against the personal liability of trustees, directors or management. However, the scope of it is often very limited in practice and charities cannot insure trustees unless they have special power to do so - you should take legal advice.

2.1 Identify potential health and safety hazards.

Assessing risks, and taking steps to manage the risks, is the key to successfully managing health and safety.

Provide information to volunteers and any employees and ask them if they are aware of any health and safety risks.

Check instructions on any supplies you purchase (eg cleaning chemicals) or machinery.

You can usually identify most risks by inspecting your premises yourself. Look for hazards such as:

• Places where people might slip, trip or fall
• Unsafe electrics such as overloaded plug sockets or damaged equipment.
• Manually lifting heavy loads (the biggest cause of injuries).
• Dangerous machinery or chemicals.
• Fire risks and inadequate fire precautions.

2.2 Think about the health and safety risks of all your organisation's activities.

This may include services provided at other premises and special events (such as a fundraising event).

Judge risks by what is reasonable. Many activities (eg sports) are inherently risky, but provided your facilities and procedures meet generally accepted standards they are unlikely to be unacceptably risky.

2.3 Take into account the different types of people who might be at risk.

These might include volunteers helping at the organisation, members of the public using the organisation's services or premises, and any employees you have.

Some groups of people may be particularly vulnerable: for example, people with disabilities.

2.4 Take reasonable steps to eliminate risks or at least reduce them to an acceptable level.

Simple practical steps can eliminate many risks: for example, repairing loose floorboards and ensuring that corridors are well-lit, or switching to safe cleaning products.

Introduce safe working practices and make sure volunteers and others are properly trained.

Provide a first aid kit and the names and contact details of any trained first aiders in case of need.

2.5 Keep records and review your assessment regularly.

Assess the risks when anything changes - for example, if you decide to hold a special event or purchase new equipment.

2.6 Check for any specific health and safety regulations applying to your organisation and activities.

Legal requirements are more stringent for organisations with paid employees. For example, if you have five or more employees, you must have a written health and safety policy and written records of risk assessments.

For example:

• Enclosed premises must be smoke free and display a no smoking sign.
• Organisations that provide food will need to comply with food safety regulations and register with the local authority.

2.7 Get advice if necessary.

Commonsense, and comparing what you do with other similar organisations, can guide you through most issues. You are not expected to eliminate every possible risk.

Your local authority environmental health department is responsible for enforcing health and safety law. They can provide advice to help you avoid problems.

3.1 Minimise your impact on the environment.

Make sure you store and dispose of waste properly.

Avoid causing a nuisance to your neighbours (for example, with noise or cooking smells). Your local authority can take action against you if you cause a "statutory nuisance".

Activities that cause pollution or emissions are likely to need authorisation. Contact your local authority.

3.2 Check what regulations apply to your particular activities.

For example, organisations involved with education or providing care services will probably need to be registered. Trade associations, regulatory bodies and local authorities are all possible sources of advice (see section 6).

Particular care needs to be taken if you work with children or vulnerable adults. You should have appropriate policies to protect them, and procedures to report concerns. You are likely to have to carry out Criminal Records Bureau checks on volunteers and employees.

You need a licence from your local authority to sell alcohol.

If you play music at your premises, you are likely to need a Performing Rights Society and/or a Public Performance Licence.

If you hold any events (eg a fundraising event), you may need authorising with a "temporary event notice". Charities collecting door to door or in the street need special public collections licences. Contact your local authority.

3.3 Ensure that you do not discriminate in the way you provide services.

You must take reasonable steps to give people with disabilities equal access to the services you provide. For example, you might need to adapt your premises to make them accessible.

It is generally illegal to discriminate against people because of their race, religion, gender, sexual orientation or disability. However, there are some exceptions (for example, if your organisation is set up specifically to help members of a particular ethnic group).

3.4 Do not trade unfairly.

If you sell products or services to the public, you must deal with them fairly and honestly. For example, you must not use aggressive sales tactics or leave out important information.

3.5 Comply with the many regulations relating to particular kinds of fundraising.

You must have a licence for street or door to door collections. Contact your local authority.

Public raffles and lotteries normally require licensing via the local authority.

Indirect fundraising by phone, e mail, internet etc and any form of "distance selling" are all subject to special regulations.

If charities plan to raise funds through collaborations with businesses or by using professional fundraising businesses, there are special requirements. For example, there must be a written contract dealing with particular matters and the public must be given specific information about the payment terms.

3.6 Understand your responsibilities for the actions of employees and volunteers.

You may be responsible for what they do - for example, if they cause a loss to somebody, or enter into an agreement on behalf of the organisation.

Make sure you have clear rules on who has the authority to commit the organisation to an agreement, and when the agreement needs authorisation by the management. Make sure these match any rules set out in your constitution.

Ensure that volunteers and employees are properly trained.

4.1 Comply with other employment law.

You must provide a written statement of the main terms and conditions of their employment.

You must have proper disciplinary and grievance procedures.

Keep up to date because employment law is constantly changing.

4.2 Use PAYE to pay employees.

You are legally required to pay employers' National Insurance contributions, and to deduct employees' National Insurance contributions and income tax from their pay.

As operating PAYE can be complicated and time-consuming, you may want to use a payroll service to do it for you. Alternatively you can purchase payroll software.

4.3 Do not discriminate.

It is generally illegal to discriminate in how you recruit and treat employees on the basis of race, religion, gender, sexual orientation, age or disability.

There are limited exceptions where there is good reason to employ someone from a particular group (for example, a female care worker to work with vulnerable women).

4.4 Respect employees' rights.

Employment disputes can be time-consuming and costly. You may want to investigate insurance to cover potential legal expenses.

Employees have a wide range of rights, including:

• Limits on the working week, and requirements for rest breaks during the working day and annual holiday allowances.
• Various entitlements such as maternity and paternity leave, statutory maternity pay and statutory sick pay.
• Time off to look after dependants, carry out union duties and for various other reasons.
• Protection against unfair dismissal.

5.1 Comply with laws on keeping accounting records, filing public accounts and reports and paying taxes.

You must keep proper financial records.

You will need to provide a charity annual return and accounts to the Charity Commission and the Office of the Scottish Charity Regulator too, if you operate in Scotland as well as England and Wales (if you are a registered charity) and a company annual return and accounts to Companies House (if you are a company).

You will have to pay some tax, even if you are a non-profit-making organisation. Be particularly careful about VAT.

5.2 Handle personal information carefully.

If you keep any personal information on individuals, you must comply with data protection regulations. For example, you must tell people why you are collecting, holding and using their data, keep the information secure, use it fairly and not misuse it.

You may also be required to notify the Information Commissioner, though most community organisations are not.

5.3 Get the right insurance for the organisation and its assets and activities.

You must have employers' liability insurance (if you have employees) and third party insurance for any vehicles.

You should get public liability insurance to cover potential claims from members of the public affected by your organisation.

6.1 Look for information and help from bodies that support community organisations.

Support organisations include the National Council for Voluntary Organisations, Directory for Social Change and Volunteering England.

You can find local support organisations through the National Association for Voluntary and Community Organisation (NCVO).

6.2 Ask your local authority for advice.

Local authorities' legal responsibilities include a range of licensing. They may also be able to offer grants to support some activities.

6.3 Check with trade associations and regulatory bodies covering your particular activities.

You can find trade associations covering your kind of activity from the Trade Association Forum (TAF).

6.4 Ask other voluntary and community organisations for help.

The UK Workforce Hub includes sample employment policies from community organisations.

6.5 If necessary, get professional advice.

You may be able to get free or subsidised legal advice through ProHelp, LawWorks for Community Groups or Professionals 4 Free.