Is this really what we have to do?

[dizzyem]

Hi, I am a committee member of a local playgroup and we are shortly to have a change of management in that the committee are stepping down and the school is taking over. We have been members of the PreSchool Learning Association and the constitution we purchased from them states that we have to give all our assets to the next local PLA member should the playgroup close.

Do we really need to do this?

Has anyone else had an experience such as this?
The playgroup will still be running in the same place with the same children and staff - it seems that this would disadvantage the children in my opinion.

Your constitution needs to say what will happen to the playgroup's assets if it closes permanently for any reason. If it happens the playgroup will cease to exist but any assets it still owns at that point need to go somewhere. This clause defines where that would be.

As long as the playgroup continues to operate this clause has no effect.

so even if the management changes then the assets can still be kept?

Correct. The clause only comes into effect if your playgroup ceases to exist completely.

The PLA tell me that because the playgroup is a registered charity then the Charities Act applies and unless the school meet certain criteria then assets are frozen and distributed to the next local charity doing the same work as we do. I guess it depends then if the school want to continue running the playgroup as a charity?

It does. If the school keep the playgroup as a separate legal entity that operates as a charity there will be no problems. They simply appoint new trustees and carry on. If they want to operate differently it may be an issue.

thank you for your help :-)