COVID-19: Government Support Packages for the Charity Sector
On 8 April 2020, the UK government announced a £750 million package to support UK charitable organisations through the COVID-19 crisis. On 12 April 2020, the government made a further announcement, making an additional £200 million available for UK and international charities focusing on overcoming the pandemic. Government departments are currently working on identifying priority recipients of such funds, with the aim for organisations to receive the funds in the coming weeks. This update provides details on the various packages available to charities, social enterprises and development organisations during the COVID-19 crisis, although this will be under review and subject to further updates as more information is released.
Accessing the Coronavirus Business Interruption Loan Scheme (CBILS)
As a consequence of COVID-19, many small and medium-sized social enterprises in the UK are facing significant financial uncertainty and, in some cases, a sudden liquidity shortfall. In recognition of the unique challenges that are facing enterprises, and to help navigate this difficult landscape, the government has introduced a programme of financial support with a view to providing short-term stability during this period of economic uncertainty.
The Impacts of COVID-19 on Insolvency Law Processes and Reforms
A survey by the National Lottery Heritage Fund found that “around a third of charity/third sector organisations and around a third of community and voluntary groups said they could not exist beyond July.” The COVID-19 pandemic has sadly made this the new norm. For many organisations, insolvency is now of real concern and so understanding the changing insolvency landscape is key.
Reviewing and Adapting Corporate Governance Policies in Response to the COVID-19 Pandemic
Corporate governance is one of the areas that has come under the spotlight as charities face unprecedented challenges due to the COVID-19 pandemic. In this update we are looking at duties and potential liabilities of charity trustees under UK law; considerations around holding of meetings remotely; decisions to use reserves and restricted funds in the current crisis; and at developing risk management policies to deal with the current challenges.
Data Protection Compliance During the COVID-19 Crisis
Changes to charity and social enterprise operations during lockdown periods will likely impact on your ability to comply with data protection regulations. The UK’s Information Commissioners Office (ICO) has indicated it will adopt a pragmatic approach in undertaking its regulatory duties. The following update provides some tips on measures that can be put in place to manage your organisation’s legal risks.