Managing play provision in thecommunity and voluntary sector

Community play briefing 6

This briefing is for

local people and

community groups

who want to develop

or run play provision

in their area. This

briefing introduces

the various legal and

organisational options

and looks at the

different roles and

responsibilities

involved.

www.playengland.org.uk

In many areas, local groups arebeginning to get more involved indeveloping and managing play provision.This might be keeping an open spacesafe and interesting for children to playin, looking after an unstaffedplayground, employing staff orvolunteers to create play opportunitiesor running a staffed play setting like anadventure playground.

If a group is taking on new responsibilities, orsimply looking at new ways of raising money forplay services, it will need to develop an appro-priate, legally recognised structure, decide onwhat type of organisation best suits its aimsand objectives and choose whether or not toapply for charitable status.

If it does not already have one, the group willneed to appoint a governing body such as amanagement committee or board of trustees,and agree a governing document, for example aconstitution or memorandum and articles ofassociation, describing its aims and objectivesand how the organisation will be run.

Formalising a group shows others it is seriousin its ambitions, helps with fundraising and’

provides a structure that helps to plan for thefuture. It also encourages others to give uptheir valuable time to help. Having a clearlydefined legal form, organisational definition andgovernance structure is crucial if the project isto have solid foundations and be run in a waythat safeguards everyone involved.

Whatever structures are being considered itis essential to get advice from organisationssuch as the National Council for VoluntaryOrganisations (NCVO), a local Voluntary ServiceCouncil, the Charity Commission or from theother organisations and websites listed at theend of this briefing.

Introduction

‘Having a clearly defined legalform, organisational definitionand governance structure iscrucial if the project is to havesolid foundations and be run in away that safeguards everyoneinvolved.'

Types of organisation suitablefor play projectsThere are many different types of organisa-tional structure in existence but those mostsuitable for play projects include:

• Clubs and associations - where the projectis run for the club members who often payan annual fee

• Social enterprises - which are businessestrading for social or environmental good,whose financial surpluses are reinvested inachieving their stated social objectives

• Community enterprises – which providelocalised services and employment

• Co-operatives – where the organisation isowned and controlled by its members

Charitable statusMany play projects and organisations existpurely to provide services and support for thegood of others or the environment and aretherefore eligible to become charities. Tobecome a charity, and register with the CharityCommission, an organisation must have a clearfocus on delivering goods and services tospecified beneficiaries and a clear set of aims,objectives and operational goals written into aconstitution.

Being a charity makes it easier to raise moneyfrom individuals and funding bodies and char-ities enjoy some tax breaks. However, charitiesare restricted in some activities and cannot beinvolved in party-political activities. Any cam-paigning they do must be related to their aimsand objectives. Also, they can only charge foractivities or services provided for, or by, theirbeneficiaries, reducing their income generatingpotential.

Some play projects, registered as charities,need to raise money from saleable productsand services associated with their aims butnot specifically for their beneficiaries. As thismay not be allowed under their charitablestatus they need to also register as a legallyconstituted business.

Case Study: Charlie Chaplin AdventurePlayground – a charity and a company limitedby guaranteeEstablished in 1983, Charlie Chaplin AdventurePlayground in south London provides anexciting and safe inclusive play service forchildren with and without disabilities. Theplayground owns the leasehold of the land itoccupies and employs a large and experiencedstaff team who are dedicated to meeting theindividual needs of each child in a friendly,supportive and professional manner.In April 2008, the playground became anindependently managed community resource,having become a private limited company inFebruary 2008. The company is registered withCompanies House, which holds copies of itsmemorandum and articles of association. Theadventure playground also has charitablestatus, with its charitable aims set out in aformal constitution.Through the quality of the service it provides, byhaving these governance structures and withsuitable policies and procedures, Charlie ChaplinAdventure Playground has been able to raisemoney it might otherwise not have been able to.Its status as a company limited by guaranteeoffers financial protection to the trustees ofthe playground.

Possible legal forms for play projectsThe legal form of a play project determines theway it is governed. Organisations must either be‘incorporated’ or ‘unincorporated’.

An unincorporated association is a structureoften used by community and voluntary organ-isations but is only suitable for small groupswith low incomes, which are not employingstaff or do not want to own property: suchas ‘friends of’ groups. An unincorporated ass-ociation can register as a charity if it meetsthe relevant criteria and can hold assetsif it creates a trust which separates thelegal ownership from the operating interests.

Legal forms and organisational structures

Case Study: Fulney Fields Supporters -an unincorporated associationThe Fulney Field Supporters (FFS) formed to filla void left at the playing field in Low Fulney inLincolnshire when the old skate park wasremoved by the local council because it wasunsafe. The group, which includes members fromSpalding, Holbeach and Long Sutton, hasdeveloped a comprehensive and robust networkof partners and stakeholders who are support-ing the project. The Supporters, a subgroup ofthe Longhurst Housing Association, have theirown constitution and have raised money andsupport from a range of different agencies.As a result there are now two communitygroups being formed, who will support others insimilar projects.

As organisations become more complex andambitious they are more likely to benefitfrom incorporated status and there are anumber of different forms suitable for playprojects. The incorporated legal forms mostsuitable for play projects include limitedcompanies, limited liability partnerships andindustrial and provident societies.

Becoming a limited company allows an organisa-tion to have separate legal identity, reducing therisk to those on the governing body. It is acommonly used structure and is a good optionfor organisations employing staff, owning orleasing property and entering into contractualagreements. The format can be adapted to suitmost purposes. There are two types of limitedcompany: those limited by shares and thoselimited by guarantee.

If an organisation wants to be seen as ‘not forprofit’ and is providing all services free at thepoint of delivery it should register as a companylimited by guarantee. Registering as a companylimited by shares allows an organisation to sellgoods and services and to pay a dividend to itsinvestors but is only likely to be a useful legalform for organisations wanting to expand bybringing in money from shareholders.

Becoming a community interest company (CIC)is a popular choice for social enterprises andmay be good option for an organisation like a playassociation that wants to develop the range of

goods and services it can sell. A CIC must haveagreed aims and objectives and has to pass aCommunity Interest Test. It can choose to beeither a company limited by guarantee or byshares. A CIC cannot also be a charity.

Another option, for example for playwork trainingcompanies, is to become an industrial andprovident society (IPS), such as a cooperative.These employee owned companies work primarilyfor the benefit of their members. An IPS canregister as a charity if it is specifically con-stituted as a community benefit society.

For play organisations wanting to benefit fromboth charitable status and company registra-tion the best option might be to adopt therelatively new charitable incorporated organ-isation (CIO) status. This structure, designedspecifically for charities, allows them to trade ina wider variety of goods and services andinvolves a single registration process.

Case Study: Nottingham Play Forum -a charitable incorporated organisation Playworks - Nottingham Children's Play ResourceCentre - is the home of Nottingham Play Forumwhich is a member owned charitable incorporatedorganisation. This legal form allows it to benefitfrom having charitable status whilst being able tosell a wide range of associated goods and services.The Forum’s aim is to improve the quality andquantity of play provision for children and youngpeople, by providing relevant training, education,resources, support, advice and information toindividuals, groups and organisations. The CIOstatus allows them to provide free services andgenerate income through: • offering a play development andinformation service

• running a scrap store and an artsand crafts shop

• providing a playwork training service • hosting regular play events and conferences• acting as a local forum• delivering street play provision in targetedcommunities throughout the city

• offering opportunities for voluntarywork in play

• running an onsite crèche.

Whichever organisational model and legal form aproject chooses there will need to be a well-defined management structure to make sure it isrun effectively and is always working towardsachieving its aims and objectives. At the top ofthis structure, and with overall responsibility, willbe the governing body. Whether this is calledthe board of directors, board of governors,management committee, trustees or anothername, the primary functions are essentially thesame. It is the body with overall responsibility forthe organisation, overseeing and controlling itsmanagement, assets and finances.

Although children and young people under the ageof 18 may not, in most circumstances, becomemembers of the board, they can still be part ofthe group or be involved in decision making inother ways.

The role of the boardThe governing body (or board) sets thelong-term vision of an organisation and makessure it is always working within its agreed aimsand objectives. The board needs to make sure theorganisation has robust policies and procedures,provide strong leadership, make clear decisionsand support the staff or volunteers running theproject. Boards need to work well as a team andhave a good relationship with their executive. Aneffective board provides good governance andleadership by1:• understanding their role• ensuring delivery of organisational purpose• working effectively both as individuals and as ateam

• exercising effective control• behaving with integrity• being open and accountable.The same principles are useful for non-charitableorganisations with social aims and objectives.

Responsibilities of board membersBeing a member of an organisation’s governingbody brings with it responsibility for directing theaffairs of the organisation, ensuring that it issolvent, well run, and delivering its agreedoutcomes. The board must ensure theorganisation complies with charity or companylaw and with the requirements of the relevantregulator; keeps to rules set out in its governingdocument and remains true to its stated purposeand objectives.

Board members must act with integrity, and avoidany personal conflicts of interest or misuse ofcharity funds or assets. They must make sure theorganisation remains solvent and does not put itsfunds, assets or reputation at undue risk, andmust consider seeking external professionaladvice if the organisation might be in trouble.

Choosing board members The size and nature of the board will depend onthe type and complexity of the organisation butthere will definitely need to be a chair, a secretaryand a treasurer. The chair makes sure the boardruns smoothly, organises and chairs meetings,makes sure action points are followed up andoften acts as a line manager to the most seniorstaff member. The person who takes the chairneeds to be able to conduct meetings, make sureeveryone participates on equal terms and providedirection. The success of the board, and there-fore the organisation, and the likelihood ofmembers staying involved, will depend partly onhow well meetings are facilitated by the chair. Thesecretary usually oversees the legal aspects ofthe organisation, ensuring legal duties are met,and the treasurer is ultimately responsible for thefinances and accounts.

In a local play project the board is likely to includepeople from the community and people who workin roles linked to the aims of the project. Whenrecruiting to the board it is important to considerthe perspectives of people not already involved,

Management arrangements

1 The Code Founding Group (2010) Good Governance A Code for the Voluntary and Community Sector Charity Commission, London:www.charity-commission.gov.uk/Charity_requirements_guidance/Charity_governance/Good_governance/governancecode.aspx

or who do not usually get involved, and thosemembers of the community who may lack con-fidence but can contribute to the project. Howchildren and young people can be involved, eitherdirectly, or via a sub-group, should also beconsidered.

As some members of the board may be new tothis type of role, and rules and regulations tendto change, building in opportunities for trainingand development can help improve teamwork,ensure better management of the organisationand allow board members to develop their ownconfidence, skills and expertise.

Case Study: Wansdyke Play Association -an active management committee Wansdyke Play Association (WPA) is a small, awardwinning, voluntary organisation with a strongreputation for promoting children's play andsupporting community development in Bath andNorth East Somerset. It has been managingcommunity play provision for 17 years and hasplayed a key role in developing innovative newprojects such as community play rangers.WPA was formed by a group of parents keento do the best for their own children. Eventuallythey formed a registered charity and companylimited by guarantee, as these were the most

suitable governance arrangements for theorganisation which needed credibility, especiallywhen looking for funding.WPA is governed by a board of members from thelocal community including residents, professionalplay people, and community play workers. In orderto help the organisation achieve its aims andobjectives, the board offers strategic leadership,direction and financial governance, contributes tothe business plan, and supports the engagementof the service users. The board also givesmentoring and ‘critical friend’ support to themanager. The wider community is actively involvedin the evaluation and monitoring of services andthrough steering groups.Children and young people are integral to thedelivery of services providing feedback on the services they receive, participating in therecruitment and selection of staff and indelivering presentations to potential funders.

Although, to some people, setting up an org-anisation, choosing a legal form and registeringas a business or a charity, might seem like un-necessary red tape, it really is crucial if the groupwants to develop good quality, sustainable, wellrun facilities where children can play freely, inspaces valued by them, their families and theircommunities.

Playful communitiesThe Playful Communities website provides information, advice and resources for individuals, localcommunity groups, third sector organisations and others who are developing play provision in theirlocal neighbourhood. The website includes resources for local people involved in managing staffedplay projects and volunteering, as well as for those supporting or maintaining play areas. www.playfulcommunities.org.uk

Cooperatives UK toolAn online questionnaire to help projects decide which legal form and organisation type is most suitedto their needs.www.selectastructure.uk.coop

Governance and organisational structuresThis guide gives detailed information on the different types of legal form and organisation typesuitable for the voluntary and community sector.www.trusteenet.org.uk/resources/governance-and-organisational-structures

Community interest companies (CIC)This website provides information and support on setting up a CIC.www.cicregulator.gov.uk

Industrial and provident societies (IPS)A Financial Services Authority web page providing information and support on setting up an IPS.www.fsa.gov.uk/pages/doing/small_firms/msr/societies/index.shtml

Charitable incorporated organisation (CIO)The Charity Commission provides information on setting up a CIO.www.charity-commission.gov.uk/Start_up_a_charity/Do_I_need_to_register/CIOs/default.aspx

Social enterpriseA website providing information and advice on setting up and running a social enterprise.www.socialenterprise.org.uk

Charity CommissionThe Charity Commission publishes guides including Choosing and Preparing a Governing Document,which has information about legal structures for voluntary and community organisations, andTrustees and their responsibilities, offering advice to people interested in becoming or recruitingcharity trustees.www.charity-commission.gov.uk

Companies HouseProvides detailed information on setting up a limited company (other than a community interestcompany).www.companieshouse.gov.uk

NCVONCVO supports and enables good governance and effective leadership in the voluntary andcommunity sector, providing extensive information and advice to the voluntary and community sector.www.ncvo-vol.org.uk/governanceandleadership

Useful resources

Play England is part of NCB and is supported by the Big Lottery Fund.Published by NCB, for Play England, June 2011.

Play England8 Wakley Street, London EC1V 7QETel: 0207 843 6300 Email: playengland@ncb.org.uk Web: www.playengland.org.ukTwitter: @playengland Facebook: www.facebook.com/playengland

This briefing was produced as part of Play England's Engaging Communities in Playprogramme funded by the Department for Education.

For further information about the Engaging Communities in Play programme visitwww.playengland.org.uk/our-work/engaging-communities-in-play

Play England promotes excellent free play opportunities for all children.

We believe that all children should have the freedom and space to play enjoyed by previousgenerations.

This involves more than just providing well-designed play areas; it requires the commitmentof local and national decision makers to create more child-friendly communities.

By making play a priority we can create healthier and happier communities for all.