Tag Archives: governance

Managing faith charities as trustees – Commission guidance revised

The Charity Commission for England and Wales have just published revised guidance for trustees of faith charities.

Image in black and white of a church on a hill
Church on a hill – image by Kamil Zubrzyci, Creative Commons, Pexels.com
View, print or download a copy here (.pdf)

The guidance tells us that ‘…places of worship such as churches, gurdwaras, mandirs, mosques, synagogues, temples and viharas are normally charities’. They normally exist with purposes that are entirely charitable. This includes…

  • advancement of religion
  • prevention or relief of poverty
  • advancement of education

The Commission also notes that there are ancillary organisations of faith that are also charitable in their endeavours, namely

  • religious supplementary schools
  • religious choirs
  • missionary organisations

You must register your organisation as a charity if it has charitable purposes for the public benefit and (both of the following)…

  • it’s based in England or Wales
  • it has income over £5,000 (from all sources)

There are, however, some churches that are exempt from charitable registration. You can find advice and information about this here…

https://www.gov.uk/government/publications/excepted-charities/excepted-charities–2#church-charities

You can find broader, more general advice on charitable purposes and rule here…

https://www.gov.uk/guidance/charity-purposes-and-rules

Faith community members, who are already trustees, or community members who are considering becoming trustees, will find this guidance, detailed, timely and helpful in making your full contribution to the work of your charity.

A full copy of this guidance can be found on the web pages of Gov.uk here…

https://www.gov.uk/government/publications/faith-based-charities/managing-faith-charities-as-trustees


The CIC – our most popular call for support!

By far the most numerous query we get, both for sources of information, or for direct advice and guidance, is around the governance, formation and change relating to Community Interest Companies.

Below are links to the latest forms, examples and formal guidance notes on Gov.uk – if we can help with your changes, formally or informally, do  just ask – our services are free.   (Sourced: August 2020)

Board meeting image: You X Ventures, Creative Commons, Unsplash

Forming a CIC

Key link https://www.gov.uk/government/publications/form-cic36-application-to-form-a-community-interest-company

Formal Note ‘When applying to form a community interest company (CIC), this form should be submitted to the CIC Regulator alongside the appropriate Companies House forms, memorandum of association, articles of association and payment’.


Transfer of Assets

Key link https://www.gov.uk/government/publications/cic53-application-to-transfer-assets

Formal NoteWhen applying to transfer assets of a community interest company (CIC), consent should be submitted to the CIC Regulator signed by a director of the company, detailing assets, value and actual consideration received’.


The CIC Report

Key link https://www.gov.uk/government/publications/form-cic34-community-interest-company-report

Formal NoteThere are 2 types of community interest company (CIC) report: detailed and simplified. The majority of CICs complete the simplified report.

The detailed report is reserved for CICs that have more complex financial arrangements. If you complete this type of report, you might need to get professional advice in relation to the financial information sections.

CIC reports are placed on the public register and made available for the public, which provides an opportunity to showcase your CIC’s activities and the benefits provided for the community over the last year. Your report does not have to be especially detailed, but you should identify highlights’.


Converting a Company to a CIC

Key link https://www.gov.uk/government/publications/form-cic37-application-to-convert-a-company-to-a-cic

Formal NoteWhen applying to convert a company to a community interest company (CIC), this form should be submitted to the CIC Regulator alongside the appropriate Companies House forms, memorandum of association, articles of association and payment’.


Change of Objects

Key link https://www.gov.uk/government/publications/form-cic14-altering-the-objects-of-a-community-interest-company

Formal Note  – The community interest statement
…a statement of the steps that have been taken to bring the proposed alteration to the notice of people affected by the company’s activities (signed by each of the company’s directors).

When applying to alter the objects of a community interest company (CIC), this form should be submitted to the CIC Regulator alongside:

Companies House form CC04 – to notify the change of the company’s objects
a signed copy of the special resolution to alter the objects of the company
a copy of the articles of association, as altered’.

See also https://www.gov.uk/government/publications/notify-the-change-of-companys-objects-cc04


Other Useful Links:

Office of the Regulator of Community Interest Companies

The Community Interest Company Blog from Gov.uk

Dissolving a Community Interest Company from Voluntary Action: South Lanarkshire