By law, you have a duty of care to protect your charity’s assets and resources. Depending on what your charity does, you can buy insurance to protect its money, property and reputation.
Examples of types of insurance that might be needed to cover a charity’s property against loss or damage are:
- buildings insurance
- contents insurance
- event insurance
Examples of types of insurance that might be needed to cover against a charity’s third party liabilities are:
- professional indemnity insurance
- public liability insurance
Charities that employ staff are required by law to buy employers’ liability insurance. Charities that own or operate motor vehicles are required by law to buy motor insurance.
For insurance purposes, charities are advised to treat volunteers in the same way as they do their employees and to ensure that they are covered by the usual types of insurance a charity might buy, such as employers’ liability or public liability cover.
More details can be found here, and here
Many congratulations to
who are the winners of the 2018 Andrew Buxton Memorial Award for the best-kept set of accounts. Well done to the whole team there!
The award will be presented to them in September by Mrs Janet Buxton
About corporate structures
Some charity structures are corporate bodies. If you choose a structure that forms a corporate body, the law considers your charity to be a person in the same way as an individual.
This gives your charity the legal capacity to do many things in its own name that a person can do, such as:
- employing paid staff
- delivering charitable services under contractual agreements
- entering into commercial contracts in its own name
- owning freehold or leasehold land or other property
If a charity structure is a corporate body, generally its trustees aren’t personally liable for what it does.
If your charity isn’t a corporate body (‘unincorporated’):
- the trustees are personally liable for what it does
- it won’t be able to enter into contracts or control some investments in its own name
- two or more trustees, a corporate custodian trustee or the charities’ land holding service will have to ‘hold’ any land on your charity’s behalf
More information can be found here