“The long awaited results of the Judicial Review brought by the Independent Schools Council (ISC) and the Attorney General’s reference into the Charity Commission’s guidance on public  benefit, which was undertaken in the Upper Tribunal in May, were released on 14 October 2011.  The result is a positive for the sector and puts the decisions on providing public benefit firmly back with Governors rather than the Charity Commission.

The History

The Charities Act 2006 became law in November 2006 and resulted in all charities having to demonstrate explicitly that their aims are for the public benefit, rather than that fact being presumed, as was previously the case for charities advancing education.

The Charity Commission issued general guidance on public benefit and supplementary sub-sector guidance for charities for the advancement of education and fee-charging charities.  Many felt that the Charity Commission had misinterpreted the law.

The Charity Commission undertook 12 pilot assessments (which included five independent schools) in late 2009 to examine whether the aims of the charities selected were for the public benefit and to assess the extent to which each charity fulfilled that requirement.

Only one independent school, Manchester Grammar School, was deemed to fully pass the public benefit test.  Two further schools passed but with good practice recommendations and two failed.  The two schools that failed prepared plans to show how they would ensure there is sufficient opportunity to benefit in a material way for those who cannot afford fees, including those in poverty.  Both schools included plans to increase the level of means-tested bursaries and after what seemed a more reasonable approach by the Charity Commission, both then passed.

It became very clear that the Charity Commission was focusing on means-tested bursaries and seemed to ignore the many other ways in which the schools ensured access by those who were unable to pay fees.

The ISC felt it had no option but to call for a Judicial Review of the Charity Commission’s guidance as it felt that their interpretation of public benefit was ‘too narrow and deeply flawed’.

The Result

The key issues which emerge from the decision are:

• a school which expressly excludes the poor, other than temporarily, from benefit would not be operating in accordance with its charitable purposes
• charitable fee paying schools must operate for the public benefit.  This means that the Governors must ensure that the poor can benefit in a way that is more than ‘minimal or tokenistic’
• Governors, rather than the Charity Commission, must decide how their school provides for the poor, based on the individual circumstances of their school and acting in the interest of all beneficiaries.  This decision should be one that a reasonable Board of Governors would make in the circumstances
• the decision makes it clear that providing means-tested bursaries, although important, is not the only way of meeting the public benefit requirement.  It confirmed that schools can provide public benefit through a variety of other methods such as sharing of teachers and facilities with local state schools.  It is for the Governors to decide what is appropriate for their school
• sharing of facilities with the broader community is deemed to provide little or no public benefit as the purpose is not educational

The decision also made clear that the Charity Commission cannot remove a school’s charitable status if it is deemed not to meet the public benefit requirements.

The Future

The Charity Commission now has to rewrite its guidance in line with the judgement; we do not expect this for some time and it appears likely that this revised guidance will be subject to consultation.  The ISC plans to issue guidance to assist schools in the intervening period.

Conclusion

There will be some who are disappointed that the Judicial Review has not provided clarity and a clear benchmark of what they need to do to meet the public benefit requirements.  However, every school is different and what may be appropriate and achievable for one school may be impossible for another.  The High Court has appropriately left the decision of what is right for an individual school to those who are best placed to make that judgement – its Governors.”

More schools are also building additional boarding facilities to cater for rising demand among parents.

The number of young girls choosing to board this year alone has soared by almost a fifth to just under 6,000.

But it was claimed that the rise may also be driven by the economic climate, with mothers and fathers forced to work increasingly long hours to make ends meet.

David Hanson, the chief executive of the Independent Association of Prep Schools (IAPS), said many families saw boarding as a cheaper alternative to hiring a full-time nanny.

Some parents are also attracted by the rise in “flexi-boarding” – flexible arrangements that allow children to stay for few nights a week without making a full-time commitment.

According to data, some 13,945 pupils are boarding at schools belonging to the IAPS this year, compared with 13,178 in 2010.

Figures show 218 schools now have boarding facilities, compared with 204 a year earlier.

The average prep school charges an average of just over £18,000-a-year for full-time boarding. By comparison, senior schools charge almost £25,000.

Boarding is believed to be much cheaper than many forms of childcare, with a full-time nanny in parts of the south-east costing as much as £40,000 after tax.

Mr Hanson said: “Busy professionals are realising the benefits of sending their children to these schools, which offer excellent facilities, healthcare, education and social environments, that can give them complete peace of mind, rather than paying for a nanny of uncertain quality.”

He added: “Paying a nanny is terrifyingly expensive. You don’t tend to think about it at the time as you pay it in monthly or weekly chunks, but when you calculate it over the year you’re staggered by how much you’ve spent.”

1. Research shows that people with untidy desks are more intellectually organised than people with tidy desks.  Why?  The tidy ones forget about all the things they have in files or piles.

2. Research also shows that companies with ‘Strategies’ perform less well than companies without strategies.  Why?  Because having strategies tends to force you to stay on a path which may be useless – just to save face.

It’s better to stay flexible.

Of those, 90% never even complete the basics – confidentiality agreements and information we can show to our clients.

Our patience is wearing a tiny bit thin – it’s all such a waste of time.

Why do buyers of language schools and international colleges all want only the ones in the South of England and London?  Why won’t they consider the excellent ones up North?  Northern colleges are often not only better value – but better. 

For example, we have a Northern college, leasehold, which is of high quality but run by a charming fellow who has discovered he doesn’t enjoy running his own business – happy to stay on as an employee though, because he loves teaching!  How much does he want?

Just £200,000.

And we have a large college whose Director of Studies will also stay on board, in the posh, Georgian North - frankly a much more elegant and attractive environment than most of London – at only £750,000.

You can get there and back easily by train – why not venture North?

Enquiries this month have come from most corners of the globe.

Indeed, the great majority of our enquiries now come from outside the UK.  The world has woken up to the fact that there are few countries more stable, more enterprising and more interesting than Britain and the UK has become a haven for international investment.

34% of London property is currently bought by international, non-UK investors.

Of particular note is the strong interest from universities in the Far and Middle East and the former Soviet bloc states in acquiring university campuses and forging academic links in England, Scotland and Wales.

- Truly outstanding Dyslexia/SEN/Autism spectrum school.  Home Counties.  Convenient for London.  Ill health forces sale.  Excellent location and facilities.  Owner will facilitate handover.  Secure long leasehold.  Offers over £450,000 for quick sale. [Ref: B9222]

- Top quality, friendly UKBA Highly Trusted Language School in the Prosperous North serving over 30 nationalities.  Long established.  Sale for retirement.  Current management happy to stay.  Good secure leaseholds.  Excellent facilities and ambience.  Good, reliable, rising profits.  Offers over £750,000.  [Ref: B9220]

 - Small private language school in modest, convenient leasehold premises in W. London. £50,000.  [Ref: B9221]

- Large national nursery group with registration for over 800.  Loss-making overall but some very large nurseries and some profitable.  Mostly leasehold but at least £850,000 of freeholds.  Offers over £1,000,000 for quick sale.  [Ref: N0243]

- It’s not often we can offer a really good, traditional school in a City Centre.  This one has a good academic reputation, a very good Head who will stay, a lovely building and all-weather playground.  The school is loved and respected locally – and has been for well over 100 years.  Offers in excess of £1,800,000.  [Ref: B9224]

- Very good Northern language school with high standards and good credentials.  Business improving after tough recession and new UK controls.  Owner says he is a committed teacher but not a great businessman – happy to remain with a good business partner.  Offers around £200,000.  [Ref: B9226]

- Large, long-established, Central London UKBA Highly Trusted Language School with outstanding facilities and location.  Not currently profitable but should be.  Large freehold available or lease available.  Discussion and offers.  [Ref: B9219]

We are selling an exceptional large family school with generous grounds, a beautiful location and superb facilities (you name it) and a fine, long-standing academic reputation.  Reason for sale is retirement.  No rush – they will only sell to people they respect and trust.  Strong competition but profits holding up well.  Offers in excess of £5,000,000.  [Ref: B9216]

Robyn is a remarkable and funny young woman – who has Asperger’s Syndrome and nine other medical conditions.  We learned so much from her about how it feels to have Asperger’s or Autism and she gave us some priceless strategies for communication, education and support.  She also pointed out that Einstein and Bill Gates have the same kind of mind as she has.

A brilliant young woman – we were greatly charmed.  There was a storm of applause.

So find time to click on to www.robynsteward.com.

 Our teachers and SEN support are excited at meeting Robyn Steward next Spring.

Nurseries currently have either to opt out of the ‘Free Funding’ voucher scheme.  Or accept it and lose money on every session they offer.

To top up fees is illegal and subject to fines of £50,000,000 or something. 

Result?  The government trumpets its street-cred support for ‘hard-working families’ whilst smaller nurseries in poorer areas (the very people they need on their side) go BROKE. 

How pathetic.