The PCC as a charity

George ColvilleDirector of Finance

Diocese of Chester

The PCC is a charity•Excepted from registration•In other respects just like a registered charityPCC members are

charity trustees

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”

Charity law brief history

-Statute of Elizabeth 1601-Charities Act 1993-Charities Act 2006

-Since 2006 Act -13 descriptions of charitable purposes-Some new ones-Public Benefit-Advancement of religion for the public benefit

Charitable purposes

Charity’s Act 2006 So what has changed?

For PCCs very little-Public benefit test

-Thresholds/ Small trusts-Registration starts >£100k

TrusteeshipLeaflet produced by Churchand Charity Commission

•Ensure compliance•Duty of Prudence•Duty of Care

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.

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

Funds• Unrestricted,• Restricted,• Endowment

•Must comply with donor wishes•Watch appeal literature•New procedures for small/outdated

Internal Control• “Church treasurer

stole cash to treat husband”

• “Church's treasurer stole £88,000”

• “Treasurer stole from church and pre-school”

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

Reserves• Trustee duty to spend money

given to them within a reasonable time

• Hold reserves only if in charity’s best interest– What For? How much?

• Reserve policy Charity Commission CC19

Don’t forget other law•Health and Safety•Employment law•CRB• If in doubt seek advice

•Practical Church Management James Behrens

LiabilityPCC members are entitled to meet the PCC’s 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

Private BenefitPCC 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.

TrusteeshipYou 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

Public Benefit•acts of public worship open to all•provision of sacred space for personal reflection and contemplation

•pastoral work, including visiting the sick and bereaved•teaching Christianity through sermons, courses and small groups.

Public Benefit

Public BenefitNOT

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.'

Remember it is the ADVANCEMENT

of religion for the public benefit that is Charitable

Public Benefit

Regulator, Registrar, Adviser

To increase charities’ efficiency and effectiveness and public confidence and trust in them.

So how should we see the Charity

Commission

Dame Suzi LeatherChair 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…

from counselling the bereaved and

helping the homeless to providing places of worship

and promoting ethical and moral codes.

The benefit delivered by these charities is the very stuff of charity and no regulator in its right mind would want to discourage this.”

So how should we see the Charity

CommissionTake them seriously

BUT no need to fear if acting appropriately

www.charity-commission.gov.ukRegister of Charities

Updates of Charity matters

General advice-CC3 The Essential Trustee-CC8 Internal Controls-CC10 Hallmarks of an Effective Charity

Registration•PCCs >£100k•Others in future

•Building projects•If limit is reduced•Voluntary registration

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

Process overview

Get Trustee Detailssheets completed

Preparation

Complete and signTrustee Declaration

It is suggested that these are done at a PCC meeting with those PCC Membersthat are there – this will allow questions to be answered.Then follow up with PCC members who were not present.

Complete OLAR processand submit to Commission

Read through the Guide, print out Trusteedetails sheets, get the Accounts.

Send Trustee Declarationwith cover sheet

Registration•Stick to standard wording•Follow advice in the leaflet•Legal advisers have checked•Charity Commission have agreed•Ring me or Nigel if questions

RegistrationWhat Changes?

•Not much•Annual return•Copy of accounts•Quote registered charity number

Parish resources Website

www.parishresources.org.uk

www.chester.anglican.org01244 681973

Diocese of Chester