Charitable registration and related trusts (May 2011)
Links to documents
- QSC Guidance for Good Governance [PDF]
- Covering letter: Specie Trust mailing (May 2011) [Word]
- Scheme to regulate charities and property [Word]
- Specie land CC email letter 2009 [Word]
- Specie land guidance assessing properties 2009 [Word]
- Specie questionnaire May 2011 [Word]
Original covering letter
20 May 2011
To all Clerks of Trustees of all area meetings which have registered (or are in the process of registering) with the Charity Commission in England and Wales.
Dear Friend
Charitable Registration and related trusts
I am writing to you to tell you about important changes at the Charity Commission. This requires your area meeting trustees to make decisions about the next steps.
Background
During 2009 most Area Meetings (AMs) which had an annual income of over £100,000, applied for registration as charities. It had been agreed with that at the same time as registering an AM, the Charity Commission (CC) would prepare a scheme to link any charities run by the AM, so that the trustees would automatically be the same, details could be included in the AM's annual accounts as a restricted fund, and there would be one registered number.
However, while considering the applications for registration, the Charity Commission realised that quite a number of Meeting Houses, burial grounds and other properties owned by AMs were also held on particular trusts that made them restricted funds too. Schemes were also needed for these, but the problem was that many AMs were not aware of these trusts.
As a result, the CC decided that it would register AMs first and then deal with schemes for linked charities and trusts, including properties, later. Quaker Stewardship Committee and Friends Trusts Limited arranged for Kevin Ellis at Friends House to look at the deeds of AMs held in the library there to identify those properties subject to trusts, when the AM did not wish to do this themselves.
In November and December 2009 the CC wrote to all AMs who had applied for registration, explaining the position in some detail, and setting out what they had to do. If you do not have this letter to hand it can be found at www.quaker.org.uk/ccadviceMay2011
The idea was that as Kevin Ellis completed his researches into the property deeds, he would inform the CC and the area meeting of his findings. The Commission would then prepare a draft scheme for each AM and write to the AM setting out what further information they needed to complete the scheme relating to properties and any other trusts.
What has happened since then is the following:
- Registration. the charitable registration of those AMs that had already applied, was completed in early 2010, with the registration of those AMs whose applications had been delayed, following later.
- Linked Charities. In a few cases, there has been some confusion about charitable registered numbers. The intention had been that where an AM had a separate trust which was already registered, that trust's number would be used, so that there would be just one number covering the AM and its trusts. However, because preparation of schemes relating to trusts was delayed, some AMs found themselves with 2 registered numbers, and were worried that this would involve separate accounts, returns to the CC etc. The CC is able to rectify this if asked (in advance of a scheme dealing with all trusts) and have done so in some cases. Please contact the Charity Commission direct if you have any difficulty over this, contacting QSC if you need any advice.
- Specie Property. Kevin Ellis has continued with his investigation of the deeds of AMs' properties. He has completed this (as far as he can) for about 70% of registered AMs, and contacted the area meetings concerned with information about the outcome.
It was November last year, before the CC actually drafted any schemes and contacted AMs. As far as QSC is aware, they have so far been in touch with just 2 AMs, who have spent considerable time answering the queries raised. We understand that these schemes should be agreed and implemented soon.
The New Situation
We have now heard from the CC that the system will have to change. Their funding is being cut by about a third and they are likely to lose about a third of their staff. They are clear that it is still essential for AMs to be aware of which of their properties are held on separate trusts and for there to be schemes to deal with these and any other linked trusts run by AM.
The difference is that the CC cannot now take the initiative. It is up to each area meeting to begin the process when they are ready. We know that some Area Meetings will be keen to get on with this straight away whilst others will need some time to collect the relevant information. Others may have other immediate priorities and would prefer to delay sorting out this aspect of their governance for a year or so.
If there is a likely to be a change in the situation in your area meeting: for example if you are planning to sell or change the use of some property, or if you are considering changing the composition of your area meeting (by division or amalgamation with other meetings), then it is particularly important for you to do the work now.
What we are asking you to do now is to give us some indication of where you are with the process and when you expect to be ready to engage with the Charity Commission on drawing up the scheme. Quaker Stewardship Committee and Friends Trusts Limited will be happy to help if they can.
What you need to do
A few AMs already have schemes in place covering the AM and all trusts and properties.
Some AMs may have no trusts and no properties (for instance London AMs where Six Weeks Meeting (London Quaker Property Trust) is involved) so no scheme is needed.
Some AMs have trusts which they wish to keep separate from the management of the area meeting (for example a trust for a home for elderly people).
Most area meetings have received a report from Kevin Ellis and should take the following steps
1. Identify Specie Land If you have heard from Kevin Ellis with a report on trusts relating to any properties, you should consider and revise it in relation to any information or deeds held locally. The information from Kevin will not necessarily be complete, and you will need to take steps to find any additional information.
It will important to know
- How many properties have been identified as 'restricted' (in other words, subject to a trust) and whether any property is likely to be sold in the near future, particularly those identified as 'restricted'.
- A list of all trusts run by the AM that you wish to be linked to the AM (that is with the same trustees covered by the same registration and included in one set of accounts). You will need to state whether any of them are already registered with the CC (either with the same number or a separate number) and the approximate value of each. Amalgamation under a scheme gives the AM an opportunity to bring these trusts up to date with modern usage if required
2. Draft a scheme (using the pro forma available at www.quaker.org.uk/ccadviceMay2011) to cover all restricted properties and all other trusts.
3. Submit the draft scheme to Alex Young at the CC(Charity Commission Direct, PO Box 1227, Liverpool, L69 3UG marked for his attention) together with the report from Kevin as revised by you. Please do not send in any copy deeds received from Kevin at this stage; the CC may ask for them later.
If you have not yet had a report from Kevin Ellis, and have no plans to carry out the research locally, please wait until you do, and then take the steps above.
Please fill in and return the attached questionnaire by 31 July. This will help QSC to have an idea of how this phase of the registration process is progressing, so that we can keep in touch, support you adequately, and monitor progress.
If you have any queries, do contact Helen Griffith in the Recording Clerks Office (heleng@quaker.org.uk 020 7663 1161) or your QSC link Friend.
Yours in friendship
Deborah Rowlands, Clerk of Quaker Stewardship Committee
