Update from the trustees on changes to the

Hood Memorial Hall charity

This is a copy of a letter that was distributed by Royal Mail to all households in Devauden and Kilgwrrwg during January.

Further to the annual general meeting of the Hood Memorial Hall charity held in September 2023, we are writing with an update on our proposed changes to the governance of the charity. The charity owns and operates the village hall in Devauden, the hall grounds, Cae Ni (the field adjoining the hall grounds) and the Devauden Festival.

The charity takes the legal form of what is called a charitable trust. Because of this, it is not regarded legally as a body that can enter into contracts in its own right unlike, for example, a registered company. Any contracts taken out for the charity or any liabilities the charity has are actually with the trustees. If the charity was taken to court – e.g. if someone visiting the hall had a serious accident or the charity was unable to pay a bill – in reality the individual trustees would be sued. Although we take out insurance to cover major risks to the charity and the personal liability of the trustees, this is still a barrier to many people becoming trustees. In particular, with the growth in the Devauden Festival and an increasingly litigious environment the trustees believe the level of risk they face personally is no longer tenable. In addition, we have found it increasingly difficult to maintain our banking services because large banks do not like dealing with charitable trusts.

Therefore the trustees are changing the charity to a charitable incorporated organisation (CIO) and have taken legal advice about the process to make this change, referred to as incorporation. Once changed, it will mean that the charity will be able to enter into contracts in its own right and the trustees will benefit from limited liability. A CIO is comparable to a limited company, in which the directors have limited liability. This change will not affect the work or daily operation of the charity in any way. You can find out more about the various types of charity structures including charitable trusts and CIOs on the Charity Commission website at www.gov.uk/guidance/charity-types-how-to-choose-a-structure

Part of the change to a CIO involves amending the charity’s constitution. Currently this takes the form of a trust deed that has been amended several times since the original version was signed in February 1960. You can view a copy of it on this page.

According to the current constitution if you are an adult resident of the parish of Devauden and the surrounding area you are entitled to vote to elect trustees at the annual general meeting (AGM). You also have a right to vote at the AGM or a general meeting called by the trustees on the sale or letting of all or part of the hall and its grounds.

The proposed new constitution is based on a standard template for charities operating village halls and community centres that has been agreed with the Charity Commission, and which we have tailored to the specific situation of the Hood Memorial Hall charity. You can view a copy of it on this page. The new constitution must be reviewed and approved by the Charity Commission before it can take effect. The Charity Commission could require changes to any of the wording, so the final version may be different from the one on the hall’s website.

The new constitution sets out what is a common structure for charities and which the trustees believe reflects the way in which the charity is currently managed. It retains the right of the local residents (defined as adult inhabitants of the Community of Devauden) to elect trustees at the AGM (or in fact at any general meeting called by the trustees). The new constitution does not expressly cover the sale or letting of all or part of the hall and its grounds and any decision to do so would be down to the trustees. Fundamentally, the charity will remain a charity overseen by trustees elected at the AGM and will operate in the same way it is operated today.

If you have any objection or would like to attend a meeting to discuss this change, please let us know by emailing chair@devaudenhall.org