Charity Reforms. Affected1Scotland 2England and Wales Not affected1Isle of Man 2Channel Islands.
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Transcript of Charity Reforms. Affected1Scotland 2England and Wales Not affected1Isle of Man 2Channel Islands.
Charity Reforms
Affected 1 Scotland2 England and Wales
Not affected1 Isle of Man
2 Channel Islands
A CONNEXIONAL LIAISON GROUP
is charged with ensuring Methodist trustees are informed and fulfill the
requirements of the respective Acts.
Scotland
The Charities and Trustee Investment (Scotland) Act 2005
• Came into effect in 2006
Charity status achieved by registering with the Office of the Scottish Charity Regulator (OSCR)
Qualification
• Organisation has one or more charitable purposes
(Advancement of religion is a charitable purpose)
and
• Organisation can demonstrate it provides benefit to the public
All Methodist Charities in Scotland and Shetland
Districts are now registered as Charities with OSCR
England and Wales
The Charities Act 2006
• Came into effect in December 2006
• Implementation is in stages
• Registration with the Charity Commission in some cases
Charitable status demonstrated by:-
1 Registration where so required
2 Excepted Status continues otherwise
There is a new Statutory Instrument
2007 no 2655 valid until 2012
Qualification
• Organisation has one or more charitable purposes
(Advancement of religion is a charitable purpose)
and
• Organisation can demonstrate it provides benefit to the public
Registration Threshold
• Register if income over £100,000
• Excepted if below £100,000
REGISTRATION TIMETABLE
► Due date for registration from 1 October 2008
► Phased over a period
Trustees Annual Report
• will most likely be used to demonstrate Public Benefit
Income
Full report: over £500,000
Brief Report: under £500,000
Local Churches
• When registering will report General Funds and Model Trust Funds
•Non Model Trust Bequests and Endowment Funds may need to be registered separately
Circuits
• Will report General Funds and Model Trust Funds (CAFs)
•Non Model Trust Bequests and Endowment Funds may need to be registered separately
Districts
• Will report General Funds and Model Trust Funds (DAFs)
•Non Model Trust Bequests and Endowment Funds may need to be registered separately
OTHER METHODIST BODIES/TRUSTS
• Must apply for registration if income exceeds £100,000
e.g Management Committee (Central Buildings, Manchester)
The Trustees for Methodist Church Purposes
• to apply for registration as Custodian Body
• will report only own Funds as Full Trustees NOT Custodian Funds
(CAFs, DAFs, Model Trust Bequests held on behalf of Managing Trustees)
THE METHODIST CHURCH OF GREAT BRITAIN
•Will apply for Registration
• Reporting only funds in the Methodist Council Consolidated Accounts
• Conference to appoint trustees
LOCAL ECUMENICAL PARTNERSHIPS (LEPs)
•Registration as a separate institution may be required for Single Congregations and some Covenanted Partnerships (Categories 1 & 2)
• Registration not required for other LEPs (categories 3-6)
REGISTRATION PROCESS
Enquiries will be answered by the Resourcing Mission Office
Roadshow Events
• Six Regional EventsJune 4 West Wakefield10 Trinity Newport, South Wales14 Coventry Central Hall17 Wonford, Exeter18 London (venue to be confirmed)25 Central Hall, Manchester
Purpose of Roadshow Events
• Target all Methodist Charities required to register as of 1 October 2008
• Share information about the Act
• Seminar to assist in completing Applications for Registration
• Offer guidance on remaining questions
ANNUAL ACCOUNTS
• Standard Form of Accounts still required applies to all Methodist Charities including
- Scotland
- Channel Islands
- Isle of Man
From 1 October 2008EXCEPTED STATUS
• Applies to all Methodist Charities with annual income
below £100,000
So
All Methodist Charities will be either
Registered CharitiesOr Excepted Charities
Statutory Instrument 2007
No 2655
Benefits and Problems of Charity Registration
Burden on Trustees
• More attractive to grant funders
• Improvement in financial accounting
• Help focus on charitable objectives and mission aims
• OSCR published report on their Rolling Review of Charities – raises profile
• Scotland effect – feel good factor for a local church with a Rolling Review
• Improvement in financial accounting
• Regulators view us as ‘low risk’