Transcript roadshow2005 - Diocese of Chester

Diocese of Chester
The PCC as a charity
George Colville
Director of Finance
The PCC is a charity
•Excepted from
registration
•In other
respects
just like a
registered
charity
PCC 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
Charitable purposes
-Since 2006 Act -13 descriptions
of charitable purposes
-Some new ones
-Public Benefit
-Advancement of religion for
the public benefit
Charity’s Act 2006
So what has changed?
For PCCs very little
-Public benefit test
-Thresholds/ Small trusts
-Registration starts >£100k
Trusteeship
Leaflet produced by Church
and 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small/outdated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 preschool”
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
• Reserve
policy
Charity Commission
much?
CC19
Don’t forget other law
•Health and Safety
•Employment law
•CRB
• If in doubt seek advice
•Practical Church Management
James Behrens
Liability
PCC 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 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.
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
Public Benefit
•acts of public
worship open to all
•provision of sacred
space for personal
reflection and
contemplation
Public Benefit
•pastoral work,
including visiting the
sick and bereaved
•teaching
Christianity through
sermons, courses
and small groups.
Public Benefit
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.'
Public Benefit
Remember it is the
ADVANCEMENT
of religion for the public benefit
that is Charitable
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 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…
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
Commission
Take them seriously
BUT no need to fear if acting
appropriately
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
Registration
•PCCs >£100k
•Others in future
•Building projects
•If limit is reduced
•Voluntary registration
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.
Process overview
Read through the Guide, print out Trustee
details sheets, get the Accounts.
Preparation
Get Trustee Details
sheets completed
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
Send Trustee Declaration
with 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
Registration
What Changes?
•Not much
•Annual return
•Copy of accounts
•Quote registered charity number
Parish resources Website
www.parishresources.org.uk
Diocese of Chester
www.chester.anglican.org
01244 681973