OPERATIONAL GUIDANCE

STUDENTS' UNIONS

THE ACTIVITIES OF CHARITABLE STUDENTS' UNIONS

OG 48 B3 - 15 March 2000

Divisional responsibility

For action:

Charity Support Division

For information:

Registration Division

Contents

1. Trustees' duties and responsibilities
2. Political activities and campaigning
3. Recreational activities

Meaning of expressions - list of Glossary terms used in this Guidance
Index to further related information

1. Trustees' duties and responsibilities

The trustees of a charitable students' union have exactly the same duties and responsibilities as the trustees of any other charity. In particular they should:

• act reasonably and prudently and in the interests of the union and its members;

• ensure that the assets of the union are applied only in furtherance of its stated objects; and

• not engage in improper political pressure group or campaigning activities (see section 2 below).

2. Political activities and campaigning

2.1 General principles
2.2 Commenting on public issues
2.3 Acting with other bodies
2.4 Supporting political parities

2.1 General principles

Our publication CC9 explains the degrees to which we consider charities may engage in political activity. Charitable students' unions are in the same position in this respect as any other charity. That is the purpose of any political activity on which:

• charitable funds are spent;

• charitable property is used; or

• the time of a sabbatical officer is spent

should be to further and serve the union's stated objects.

Political activity:

• should not be allowed to dominate the activities of the union;

• should not be undertaken as an end in itself;

• should be undertaken only with due regard to the overall financial position of the union and its other commitments.

There is nothing to prevent students joining together outside of the union to collect their own funds for a particular purpose.

2.2 Commenting on public issues

A charitable students' union may comment publicly on social economic environmental and political issues if these relate to its purposes or the way in which it is able to carry out its work. For example:

• street lighting near the campus;

• more public transport at night; or

• nursery places for the children of students.

It should not comment publicly on issues which do not affect the welfare of students as students. For example:

• planning proposals for new roads or motorways which have no direct affect on the university campus or the students;

• campaigns to outlaw the killing of whales; or

• the treatment of political prisoners in a foreign country.

2.3 Acting with other bodies

A charitable students' union may:

• affiliate to the National Union of Students (or a similar body) to make sure that its members are represented at national level;

• affiliate to a campaigning alliance even if the alliance includes non-charitable organisations. But it should do this only if it would further the union's own educational purposes.

It should not:

• take part in activities through an alliance which it would be wrong for it to undertake directly;

• use a payment to a club or society as a way of transferring funds to a third party beyond the club or society.

2.4 Supporting political parties

A charitable students' union may not support a particular political party but it may:

• encourage students to develop their political awareness and acquire knowledge of or debate political issues. To achieve this it may make grants to political clubs or societies on the campus. But these should be even-handed and non-discriminatory and for the purposes of the clubs or societies.

3. Recreational activities

It is accepted that the provision of facilities for their recreation and leisure furthers both the interests of students and the educational purposes of their university or college.

A students' union may operate a bar and provide catering facilities organise concerts etc but the trustees need to be aware of the possible tax consequences. If the facilities are open only to students and the profits are used for the purposes of the union there will be no tax liability. However if the facilities are open to members of the public on a more than occasional basis there may be liability for income or corporation tax.

To avoid tax liability the union should consider setting up a separate non-charitable trading company. Its profits may then be passed to the union either by way of deed of covenant the Gift Aid Scheme or dividends. CC35 Charities and Trading sets out the questions which need to be addressed before taking this course of action and the advantages and disadvantages of doing so.

The following words and phrases are defined in the Glossary of Terms:

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•

officers
trustees

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