Charity Reforms

Affected 1 Scotland2 England and Wales

Not affected1 Isle of Man

2 Channel Islands

A CONNEXIONAL LIAISON GROUP

is charged with ensuring Methodist trustees are informed and fulfill the

requirements of the respective Acts.

Scotland

The Charities and Trustee Investment (Scotland) Act 2005

• Came into effect in 2006

Charity status achieved by registering with the Office of the Scottish Charity Regulator (OSCR)

Qualification

• Organisation has one or more charitable purposes

(Advancement of religion is a charitable purpose)

and

• Organisation can demonstrate it provides benefit to the public

All Methodist Charities in Scotland and Shetland

Districts are now registered as Charities with OSCR

England and Wales

The Charities Act 2006

• Came into effect in December 2006

• Implementation is in stages

• Registration with the Charity Commission in some cases

Charitable status demonstrated by:-

1 Registration where so required

2 Excepted Status continues otherwise

There is a new Statutory Instrument

2007 no 2655 valid until 2012

Qualification

• Organisation has one or more charitable purposes

(Advancement of religion is a charitable purpose)

and

• Organisation can demonstrate it provides benefit to the public

Registration Threshold

• Register if income over £100,000

• Excepted if below £100,000

REGISTRATION TIMETABLE

► Due date for registration from 1 October 2008

► Phased over a period

Trustees Annual Report

• will most likely be used to demonstrate Public Benefit

Income

Full report: over £500,000

Brief Report: under £500,000

Local Churches

• When registering will report General Funds and Model Trust Funds

•Non Model Trust Bequests and Endowment Funds may need to be registered separately

Circuits

• Will report General Funds and Model Trust Funds (CAFs)

•Non Model Trust Bequests and Endowment Funds may need to be registered separately

Districts

• Will report General Funds and Model Trust Funds (DAFs)

•Non Model Trust Bequests and Endowment Funds may need to be registered separately

OTHER METHODIST BODIES/TRUSTS

• Must apply for registration if income exceeds £100,000

e.g Management Committee (Central Buildings, Manchester)

The Trustees for Methodist Church Purposes

• to apply for registration as Custodian Body

• will report only own Funds as Full Trustees NOT Custodian Funds

(CAFs, DAFs, Model Trust Bequests held on behalf of Managing Trustees)

THE METHODIST CHURCH OF GREAT BRITAIN

•Will apply for Registration

• Reporting only funds in the Methodist Council Consolidated Accounts

• Conference to appoint trustees

LOCAL ECUMENICAL PARTNERSHIPS (LEPs)

•Registration as a separate institution may be required for Single Congregations and some Covenanted Partnerships (Categories 1 & 2)

• Registration not required for other LEPs (categories 3-6)

REGISTRATION PROCESS

Enquiries will be answered by the Resourcing Mission Office

Roadshow Events

• Six Regional EventsJune 4 West Wakefield10 Trinity Newport, South Wales14 Coventry Central Hall17 Wonford, Exeter18 London (venue to be confirmed)25 Central Hall, Manchester

Purpose of Roadshow Events

• Target all Methodist Charities required to register as of 1 October 2008

• Share information about the Act

• Seminar to assist in completing Applications for Registration

• Offer guidance on remaining questions

ANNUAL ACCOUNTS

• Standard Form of Accounts still required applies to all Methodist Charities including

- Scotland

- Channel Islands

- Isle of Man

From 1 October 2008EXCEPTED STATUS

• Applies to all Methodist Charities with annual income

below £100,000

So

All Methodist Charities will be either

Registered CharitiesOr Excepted Charities

Statutory Instrument 2007

No 2655

Benefits and Problems of Charity Registration

Burden on Trustees

• More attractive to grant funders

• Improvement in financial accounting

• Help focus on charitable objectives and mission aims

• OSCR published report on their Rolling Review of Charities – raises profile

• Scotland effect – feel good factor for a local church with a Rolling Review

• Improvement in financial accounting

• Regulators view us as ‘low risk’