Organisational Structures

Topic Summary
Relevant Content

This guidance is aimed at a range of groups that may consider taking on library services. Local authorities should be aware that there will be different considerations depending on the nature of the organisation it is transferring to.

Likely recipients in a Community Library transfer are:

• Existing Community Organisations: Constituted community organisations and enterprises already established with objectives of benefiting the local community.
• Informal Groups seeking to set up a new organisation: e.g. residents coming together with an interest in saving the library.
• Parish and Town Councils.

Careful considerations should be given to the pro’s and cons of establishing a separate entity with the purpose of managing the community library. In some instances the establishment of a new community enterprise may be a more suitable option than transfer to a parish or town council.

Considerations for Community Groups

If you are already an existing organisation, asset or service transfer might represent the first time you have taken on an interest in an asset, or employed staff. If this is the case you need to check your existing governing document to check that it permits you do to so.

The governing document, (constitution for a charity; memorandum and articles of association for a company), will contain detail of how the constitution can be changed. This will either be as a result of a meeting by the trustees / directors and a vote of those present or by a meeting of the membership and a vote.

If you are a more established organisation and have clarity in relation to your powers, your main considerations will be the strategic fit and associated operational and resource issues relating to running the library services and/or new building.

Considerations for Town and Parish Councils

Parish and Town Councils

Parish and Town Councils may be able to take on the management of library buildings and services in certain circumstances. In many ways, they are well positioned to address some of the challenges of asset transfer in that they can offer:

• An existing constituted body.
• Proven track record – elected and trusted by the community.
• Ability to manage multiple assets to create mixed asset portfolio.
• Access to finance (precept and National Loans Fund) on advantageous terms.
• No EU State Aid regulations to consider in statutory to statutory transfer.
• Skills and systems in place.

At the same time, Parish and Town Councils face some unique challenges:

• Continual raising of precept to fund a statutory service is unpopular and can be seen as (‘double funding’).
• PTC’s have no explicit power to run library services which can restrict options for financing them (see legal note).
• Not constituted or geared up for enterprise activity (no limited liability).
• Can’t attract community investment (community shares).
• Can’t access charitable funding (Big Lottery).
• Employment can be expensive and burdensome.
• Typically more difficult to mobilise volunteers than other community organisations.
• Asset management/ service provision can distract from core business.

Parish and Town Councils need therefore to carefully consider their role in supporting service and asset transfer. Should it be a strategic role ensuring continuing services to community? PTC’s can provide an important intermediary position bridging local authorities to community enterprises, and establish strong mutually beneficial partnerships with community enterprises.

Ask questions – what does the community need? Who does it want to deliver it?

Are Libraries Charitable?

1 comment
Login or register to post answers

Applicant support - Libraries applying to register as charities

The following document summarises information provided by the Charity ...

Organisational Structures