Agenda item

Charities Review

Report of the Council Business Committee.

Minutes:

(Cabinet Member with Special Responsibility Councillor Mace)

 

(Councillor Gilbert declared a personal interest in the following item in view of his wife’s involvement with the James Bond/Henry Welch Trust)

 

Cabinet received a report setting out a recommendation from Council Business Committee on the options for use of existing charity funds for which the Council is responsible which are currently dormant.

 

The options, options analysis, including risk assessment, were set out in the report as follows:

 

 

Option

Advantages

Disadvantages/risks

1

To proceed with the proposed amalgamations of Charity Trust Funds as set out in paragraphs 1.4 and the transfer of funds as set out in 1.5

Retains control over the allocation of funds via a Management Committee of Trustees appointed by the Council

Significant additional workload for staff in Democratic Services, initially to work with the Charity Commission to set up the new arrangements and on an ongoing basis to management the Trust Fund, the Management Committee and the allocation of funds

2

To agree to support the proposed setting up of the CFL and identify sufficient funds from the bequests listed in Appendix A for transfer to the CFL over the next 3 years, holding the remaining sums in abeyance until the operation of the CFL has been evaluated, but with the long term intention of transferring all unused funds to the CFL

Takes advantage of the opportunity to be part of the Lancashire Community Foundation, utilising the expertise available in grant funding

Expected to ensure that grant allocations show a demonstrable contribution to LAA outcomes

More cost effective than administering the funds ‘in-house’

Could be seen as handing over Lancaster District money to the County

The Lancashire Community Foundation may fail

3

To agree to support the proposed setting up of the CFL and identify sufficient funds from the bequests listed in Appendix A for transfer to the CFL over the next 3 years and continue with the proposed amalgamations of Charity Trust Funds for the remaining bequests.

Takes advantage of the opportunity to be part of the Lancashire Community Foundation, utilising the expertise available in grant funding

Expected to ensure that grant allocations show a demonstrable contribution to LAA outcomes

More cost effective than administering the funds ‘in-house’

Could be seen as handing over Lancaster District money to the County

The Lancashire Community Foundation may fail

Work on amalgamations may be wasted if there is a later decision to transfer further funds to the CFL

4

Take no action in respect of any of the funds listed in Appendix A.

 

Money continues to accumulate and is not used for the benefit of the community

 

The officer preferred option is 2 above as this brings into use funds which have lain dormant for many years.  This proposal takes full advantage of the expertise of a specialist grant making organisation and provides better value for money than the administration of individual Trust Funds by the City Council.  Grant allocations will still be made for the benefit of the Lancaster District.

 

It was moved by Councillor Mace and seconded by Councillor Blamire:-

 

“(1)      That Council Business Committee’s recommendation to proceed with the proposed amalgamations of Charity Trust Funds and the transfer of funds as set out in paragraphs 1.4 and 1.5 of the report (Option 1) be approved, subject to (2) and (3) below:

 

(2)               That the funds referred to in 1.5 of the report, relating to current and former educational establishments, be transferred to the relevant Board of Governors for use as prize money for the school without delay.

 

(3)               That the consolidation of the charities to form five charities to be managed by Lancaster City Council, referred to in 1.4 of the report, be deferred until resources are available in Democratic Services to carry out the work required to set up and support the five charities proposed.”

 

Members then voted as follows:-

 

Resolved unanimously:

 

(1)               That Council Business Committee’s recommendation to proceed with the proposed amalgamations of Charity Trust Funds and the transfer of funds as set out in paragraphs 1.4 and 1.5 of the report (Option 1) be approved, subject to (2) and (3) below:

 

(2)               That the funds referred to in 1.5 of the report, relating to current and former educational establishments, be transferred to the relevant Board of Governors for use as prize money for the school without delay.

 

(3)               That the consolidation of the charities to form five charities to be managed by Lancaster City Council, referred to in 1.4 of the report, be deferred until resources are available in Democratic Services to carry out the work required to set up and support the new arrangements.

 

Officers responsible for effecting the decision:

 

Chief Executive

Head of Democratic Services

 

Reasons for making the decision:

 

The decision is taken in line with the recommendation of the Council Business Committee and takes account of the staff resources available to deal with the significant additional workload for staff in Democratic Services to set up and support the new arrangements.

Supporting documents: