The second part of the Charities Act 2022 came into force on the 14 June this year and it could help your church’s finances.
For example, if a PCC has a permanent endowment with a market value of less than £25,000, and believe the capital would be better used for the restricted purpose, rather than just the income, the fund can be wound up and the capital used without Charity Commission approval.
Over the summer, Chris Boden, Stewardship & Resources Officer, will be looking at the endowment funds the WDBF holds as custodian trustees on behalf of parishes, and contacting them to let them know what they can do and how to go about it.
The Act also brings in new rules with regards to selling, leasing or disposing of charity land, using endowment funds for Total Returns investing, and changing a charity’s name. This has also meant that much of the Charity Commission advice (the CC guides) has been updated, including those guides that look at merging charities, managing investments, reserves, and managing and reporting on finances more generally.
Aarti Thakor, Director of Legal & Accounting Services at the Charity Commission said:
“The latest changes introduced by the Charities Act 2022 give the charities we regulate more flexibility and greater powers. These are positive changes that will impact a significant number of charities, so it is important all organisations, big or small, take the time to check what this means for them. This is especially important if they are looking, for example, to dispose of land. We have updated our guidance to help trustees understand the changes, and our contact centre is open to those who need further support.”
If you would like to speak with someone at the WDBF about how these changes might affect your churches, please contact Chris Boden.
