It is alarmingly common for Boards to discover that they are acting ‘ultra vires’ or beyond their purpose and this could lose the organisation its charitable status and tax exemptions. • But we’re a charity The final point is rather a sad one: charities are the subject of more frauds than other organisations, although arguably perhaps they just report them more often. There are many ways that charities can and will be targeted and it is necessary to have robust procedures and controls in place to try and limit the opportunity and impact of an attack. You cannot assume that no one would be low enough to target a charity, they can be seen as easy targets and it is for the Board and Executive to prevent this. The charity sector does so much good for so many deserving and desperate causes and people. There is risk, and be clear on what those risks are, but what a reward when you see the outcomes delivered; but in order for charities to survive, they are dependant of those individuals who are dedicated in volunteering their valuable time to fill roles such as those of Trustee. Scrutton Bland have many years’ experience working with charities and not for profit organisations across the region to provide accountancy and audit, insurance and financial advice. Contact Tim at tim.oconnor@scruttonbland. co.uk or tel 01206 838406
For Board members familiarity is an easy trap to fall into. Trustees, by their very nature tend to be the honest, trustworthy and all round decent members of the community, so it would seem logical to surround themselves with likeminded, similar people. The danger with this approach is that trustees are human beings too, and it is only natural that people spend their time focussing on the parts of the organisation that interest them and inadvertently forget about all the other equally important aspects. A skills audit of the Board, whether formal or otherwise, can be a very effective way of highlighting areas where there may be a skills gap. This practice needs to link to the overall strategy of the charity as well as its charitable purpose as otherwise there can be a danger that individual agendas can come into play. • Mission creep When charities are formed they are legally obliged to state their purpose and this is agreed with the Charities Commission. Just because an activity is charitable in nature it does not mean that a charity can do it, unless it is one of its purposes. There must be no ambiguity between the Board and Executive in ensuring that activities carried out do not stray outside of the agreed purposes. This can be a particular problem when chasing grant funding to utilise capacity within the charity. The Board need to be clear on their purposes and expected outcomes; any new activities or sources of funding must be assessed to ensure that they meet these purposes and will deliver the necessary outcomes.
What to do with the old coins If you are still in possession of a secret stash of the old version of the round pound coin then banks and post offices may still take them to exchange for the new coin (particularly if you are a customer), but it is worth contacting them first as this is only a temporary arrangement. Do you have a rare version of the pound coin? There were 24 different designs of the round
Compare this with the March 2016 ‘Peter Rabbit’ fifty pence. It first entered circulation in the Lake District (famous for its association with Beatrix Potter) and examples quickly appeared on online auction sites for many time its face value. However the Royal Mint then continued to issue this version of the coin, and current estimates are for 9.6 million of them in circulation, making it worth at most … fifty pence. The Royal Mint does not release total mintage figures of a particular version of a coin until a year after it has first been issued, so there is no easy way to tell if you are in possession of a future ‘Kew Gardens’, or just a ‘Peter Rabbit’. It is worth noting that the Royal Mint cannot offer valuations of pound coins (or any other coins for that matter) but will only verify if the coin is genuine or not.
Coin collecting as an investment? As with any other collecting activity, the value lies in the scarcity of the item. Keith Heddle, managing director of the coin investment arm of Stanley Gibbons says: “Most modern coins are never going to make money unless they are particularly rare – not a so-called ‘limited edition’ – or have been minted by mistake.” So can you make money from the old round pound coins? As they disappear to be melted down to make the newer version of the coin, it is possible that collectors will be increasingly anxious to complete their set of all 24 designs. So – in theory – yes, you might make a very small profit. But for a rather more reliable approach to maximising your returns from your money might we respectfully suggest that a chat with one of Scrutton Bland’s independent financial planners may be a more dependable option.
pound coin, some of which are rare and increasingly valuable to coin collectors (or numismatists, to give them their technical term). The rarest of these is the 2011 ‘Edinburgh City’ coin, which can sell for up to £35 on online auction sites; other examples include the 2011 ‘Cardiff City’ and the 2010 ‘London City’ pound coins. What about other rare coins that may turn up in my change? The most famous of the rare coins in current circulation is the ‘Kew Gardens’ fifty pence piece which was issued in 2009. Crucially for collectors, only 210,000 of the coins featuring the famous Kew Gardens pagoda were released into circulation. This has now made them highly desirable: their current value is about £30, although they have sold for as much as £100.
Contact our Independent Financial Advice department on 01206 838400 or 01473 267000 or see www. scruttonbland.co.uk
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