Slide 1

The PCC as a charity George Colville Director of Finance Diocese of Chester Slide 2 The PCC is a charity Excepted from registration In other respects just like a registered charity PCC members are charity trustees Slide 3 PCC Governing Documents the Parochial Church Councils (Powers) Measure 1956 the Church Representation Rules promoting in the parish the whole mission of the Church, pastoral, evangelistic, social and ecumenical Slide 4 Charity law brief history -Statute of Elizabeth 1601 -Charities Act 1993 -Charities Act 2006 Slide 5 -Since 2006 Act -13 descriptions of charitable purposes -Some new ones -Public Benefit -Advancement of religion for the public benefit Charitable purposes Slide 6 Charitys Act 2006 So what has changed? For PCCs very little -Public benefit test -Thresholds/ Small trusts -Registration starts >100k Slide 7 Trusteeship Leaflet produced by Church and Charity Commission Ensure compliance Duty of Prudence Duty of Care Slide 8 Report and Accounts Values of openness transparency and accountability Important to communicate with donors and community About 12,000 PCCs with aggregate annual income of over 0.75 billion. Slide 9 Report and Accounts Accruals limit now 250,000 Audit 500,000 R&P accounts Trustees Annual report Independent examiners report Receipts and Payment Account(s) Statement of assets and liabilities Slide 10 Funds Unrestricted, Restricted, Endowment Must comply with donor wishes Watch appeal literature New procedures for small/outdated Slide 11 Internal Control Church treasurer stole cash to treat husband Church's treasurer stole 88,000 Treasurer stole from church and pre- school Slide 12 Internal Control Put in place standard controls Dual cheque signatories No blank cheques signed Significant cash counted in presence of more than one person Contracts signed by more than one person For protection of Treasurer/ Churchwardens as well as protection of PCC Look at Charity Commission Checklist CC8 Slide 13 Reserves Trustee duty to spend money given to them within a reasonable time Hold reserves only if in charitys best interest What For? How much? Reserve policy Charity Commission CC19 Slide 14 Dont forget other law Health and Safety Employment law CRB If in doubt seek advice Practical Church Management James Behrens Slide 15 Liability PCC members are entitled to meet the PCCs liabilities out of its resources. Gross failure to act in accordance with their legal responsibilities as trustees Will probably find there is already some cover in PCC insurance policy Slide 16 Private Benefit PCC members can receive payment for services provided to the PCC, if a certain procedure is followed. PCC members cannot become employees of the PCC unless the Charity Commission gives permission. Slide 17 Trusteeship You can delegate tasks not responsibility Take it seriously Act together and try to ensure decisions are taken as a body. Avoid dominant trustees, or leaving task to one of number. MOST IMPORTANTLY - Remember what the PCC is for Slide 18 Public Benefit acts of public worship open to all provision of sacred space for personal reflection and contemplation Slide 19 pastoral work, including visiting the sick and bereaved teaching Christianity through sermons, courses and small groups. Public Benefit Slide 20 NOT Public Opinion 'Charitable status is not decided on the basis of popularity. I am well aware that, if we held a charity version of the X Factor, some of the most pioneering and innovative work done by charities would not necessarily be successful in winning the public vote.' Slide 21 Remember it is the ADVANCEMENT of religion for the public benefit that is Charitable Public Benefit Slide 22 Regulator, Registrar, Adviser To increase charities efficiency and effectiveness and public confidence and trust in them. Slide 23 So how should we see the Charity Commission Slide 24 Dame Suzi Leather Chair Charity Commission Church of England Newspaper There are 25,000 charities on the register set up for the purpose of advancing religion, and they provide our communities with a wealth of charitable activity Slide 25 from counselling the bereaved and helping the homeless to providing places of worship and promoting ethical and moral codes. Slide 26 The benefit delivered by these charities is the very stuff of charity and no regulator in its right mind would want to discourage this. Slide 27 So how should we see the Charity Commission Take them seriously BUT no need to fear if acting appropriately Slide 28 www.charity-commission.gov.uk Register of Charities Updates of Charity matters General advice -CC3 The Essential Trustee -CC8 Internal Controls -CC10 Hallmarks of an Effective Charity Slide 29 Registration PCCs >100k Others in future Building projects If limit is reduced Voluntary registration Slide 30 1. Preparation - gathering the necessary data for registration 2. Opening a User Account 3. Entering details about your PCC, about what it does, and about the Trustees. 4. Checking that the data is correct, and then submitting it to the Charity Commission electronically. 5. Returning to the Commission a signed Trustee Declaration. Registration Slide 31 Process overview Get Trustee Details sheets completed Preparation Complete and sign Trustee Declaration It is suggested that these are done at a PCC meeting with those PCC Members that are there this will allow questions to be answered. Then follow up with PCC members who were not present. Complete OLAR process and submit to Commission Read through the Guide, print out Trustee details sheets, get the Accounts. Send Trustee Declaration with cover sheet Slide 32 Registration Stick to standard wording Follow advice in the leaflet Legal advisers have checked Charity Commission have agreed Ring me or Nigel if questions Slide 33 Registration What Changes? Not much Annual return Copy of accounts Quote registered charity number Slide 34 Parish resources Website www.parishresources.org.uk Slide 35 www.chester.anglican.org 01244 681973 Diocese of Chester