Charities Act

The Charities act will have significant effects on the life of the churches.

• The end of 'exception'  -  churches with an income of over £100k pa will need to register with the Charity Commission as charities in their own right.
• Offering a 'public benefit'  -  is  key element of charity definition and churches need to define how they are doing this.

The end of 'exception'?

A new exception order was enacted on 1st October 2007 under the new legislation for those churches with an income lower than £100k.  This new exception will run until 2012 giving denominations time to carefully consider how charity registration might be handled.  Churches which are covered by the order (click for list) can quote the Exception Order 2007/2655 where, if they were registered charities, they would quote their own charity number.

Those with income greater than this threshold will need to register as charities.

Denominations are working with the Charity Commission on how they will meet the new requirements, as it places significant burdens on local churches. Where it is possible to amalgamate accounts then some 'grouping' of churches offer the best option for charity registration.

Standard documents are being developed to ease the registration process.

Offering a 'public benefit'.

A Charity Commission consulation on public benefit has concluded with a further report  relating to the public benefit of religious charities.

The Charity Act 2006 applies to all charities in England and Wales.  Similar legislation for Scotland is adminstered by OSCR.