Delivering contracts and liability of trustees and directors

Most voluntary organisations are used to delivering services through grant funding.  In the eyes of the law, a grant is a ‘gift’ – it is a donation which is subject to trust law rather than contract law.

A contract is a legally binding agreement between two parties, where one party agrees to provide services in return for payment (usually money).  If either party fails then this can be challenged in a court of law.

Failure to deliver on a contract can put the trustees at significantly more risk than failing to  deliver services through grant funding.

For information on Charities and Public Service Delivery see:

http://www.charitycommission.gov.uk/Publications/cc37.aspx

For a guide on how to reduce the risks of Trustee liability see:

Reducing_the_risks_A_Guide_to_trustee_management_PDF.pdf

Sayer Vincent have produced this excellent guide on contracts and grants

/Grants%20and%20contracts%20made%20simple.pdf

NAVCA and NCVO have released the second edition of the popular "Pathways through the maze: A guide to procurement law" publication. The publication has already helped many community and voluntary organisations navigate their way through the often confusing procurement law landscape and this second edition offers important updates which take account of the recent changes in European law: