Charities Bill [HL]

House of Commons

Session 2005 - 06
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Other Bills before Parliament

Charities Bill [HL]

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 11 — Powers to spend capital and mergers
50

(a)
“available endowment fund” has the same meaning as in
section 75 above,
(b)
“market value” has the same meaning as in section 75A above,
and
(c)
the reference in subsection (4) to the giving of property by an
5
individual includes his giving it under his will.”
Mergers
44
Merger of charities
After section 75B of the 1993 Act (inserted by section 43 above) insert—
“Mergers
10
75C
Register of charity mergers
(1)
The Commission shall establish and maintain a register of charity
mergers.
(2)
The register shall be kept by the Commission in such manner as it
thinks fit.
15
(3)
The register shall contain an entry in respect of every relevant charity
merger which is notified to the Commission in accordance with
subsections (6) to (9) and such procedures as it may determine.
(4)
In this section “relevant charity merger” means—
(a)
a merger of two or more charities in connection with which one
20
of them (“the transferee”) has transferred to it all the property of
the other or others, each of which (a “transferor”) ceases to exist,
or is to cease to exist, on or after the transfer of its property to
the transferee, or
(b)
a merger of two or more charities (“transferors”) in connection
25
with which both or all of them cease to exist, or are to cease to
exist, on or after the transfer of all of their property to a new
charity (“the transferee”).
(5)
In the case of a merger involving the transfer of property of any charity
which has both a permanent endowment and other property
30
(“unrestricted property”) and whose trusts do not contain provision for
the termination of the charity, subsection (4)(a) or (b) applies in relation
to any such charity as if—
(a)
the reference to all of its property were a reference to all of its
unrestricted property, and
35
(b)
any reference to its ceasing to exist were omitted.
(6)
A notification under subsection (3) above may be given in respect of a
relevant charity merger at any time after—
(a)
the transfer of property involved in the merger has taken place,
or
40
(b)
(if more than one transfer of property is so involved) the last of
those transfers has taken place.

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 11 — Powers to spend capital and mergers
51

(7)
If a vesting declaration is made in connection with a relevant charity
merger, a notification under subsection (3) above must be given in
respect of the merger once the transfer, or the last of the transfers,
mentioned in subsection (6) above has taken place.
(8)
A notification under subsection (3) is to be given by the charity trustees
5
of the transferee and must—
(a)
specify the transfer or transfers of property involved in the
merger and the date or dates on which it or they took place;
(b)
include a statement that appropriate arrangements have been
made with respect to the discharge of any liabilities of the
10
transferor charity or charities; and
(c)
in the case of a notification required by subsection (7), set out
the matters mentioned in subsection (9).
(9)
The matters are—
(a)
the fact that the vesting declaration in question has been made;
15
(b)
the date when the declaration was made; and
(c)
the date on which the vesting of title under the declaration took
place by virtue of section 75E(2) below.
(10)
In this section and section 75D—
(a)
any reference to a transfer of property includes a transfer
20
effected by a vesting declaration; and
(b)
“vesting declaration” means a declaration to which section
75E(2) below applies.
(11)
Nothing in this section or section 75E or 75F applies in a case where
section 69K (amalgamation of CIOs) or 69M (transfer of CIO’s
25
undertaking) applies.
75D
Register of charity mergers: supplementary
(1)
Subsection (2) applies to the entry to be made in the register in respect
of a relevant charity merger, as required by section 75C(3) above.
(2)
The entry must—
30
(a)
specify the date when the transfer or transfers of property
involved in the merger took place,
(b)
if a vesting declaration was made in connection with the
merger, set out the matters mentioned in section 75C(9) above,
and
35
(c)
contain such other particulars of the merger as the Commission
thinks fit.
(3)
The register shall be open to public inspection at all reasonable times.
(4)
Where any information contained in the register is not in documentary
form, subsection (3) above shall be construed as requiring the
40
information to be available for public inspection in legible form at all
reasonable times.
(5)
In this section—
“the register” means the register of charity mergers;
“relevant charity merger” has the same meaning as in section 75C.
45

Charities Bill [HL]
Part 2 — Regulation of charities
Chapter 11 — Powers to spend capital and mergers
52

75E
Pre-merger vesting declarations
(1)
Subsection (2) below applies to a declaration which—
(a)
is made by deed for the purposes of this section by the charity
trustees of the transferor,
(b)
is made in connection with a relevant charity merger, and
5
(c)
is to the effect that (subject to subsections (3) and (4)) all of the
transferor’s property is to vest in the transferee on such date as
is specified in the declaration (“the specified date”).
(2)
The declaration operates on the specified date to vest the legal title to
all of the transferor’s property in the transferee, without the need for
10
any further document transferring it.

This is subject to subsections (3) and (4).
(3)
Subsection (2) does not apply to—
(a)
any land held by the transferor as security for money subject to
the trusts of the transferor (other than land held on trust for
15
securing debentures or debenture stock);
(b)
any land held by the transferor under a lease or agreement
which contains any covenant (however described) against
assignment of the transferor’s interest without the consent of
some other person, unless that consent has been obtained before
20
the specified date; or
(c)
any shares, stock, annuity or other property which is only
transferable in books kept by a company or other body or in a
manner directed by or under any enactment.
(4)
In its application to registered land within the meaning of the Land
25
Registration Act 2002, subsection (2) has effect subject to section 27 of
that Act (dispositions required to be registered).
(5)
In this section “relevant charity merger” has the same meaning as in
section 75C.
(6)
In this section—
30
(a)
any reference to the transferor, in relation to a relevant charity
merger, is a reference to the transferor (or one of the transferors)
within the meaning of section 75C above, and
(b)
any reference to all of the transferor’s property, where the
transferor is a charity within section 75C(5), is a reference to all
35
of the transferor’s unrestricted property (within the meaning of
that provision).
(7)
In this section any reference to the transferee, in relation to a relevant
charity merger, is a reference to—
(a)
the transferee (within the meaning of section 75C above), if it is
40
a company or other body corporate, and
(b)
otherwise, to the charity trustees of the transferee (within the
meaning of that section).
75F
Effect of registering charity merger on gifts to transferor
(1)
This section applies where a relevant charity merger is registered in the
45
register of charity mergers.
(2)
Any gift which—

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 1 — Public charitable collections
53

(a)
is expressed as a gift to the transferor, and
(b)
takes effect on or after the date of registration of the merger,

takes effect as a gift to the transferee, unless it is an excluded gift.
(3)
A gift is an “excluded gift” if—
(a)
the transferor is a charity within section 75C(5), and
5
(b)
the gift is intended to be held subject to the trusts on which the
whole or part of the charity’s permanent endowment is held.
(4)
In this section—
“relevant charity merger” has the same meaning as in section 75C;
and
10
“transferor” and “transferee” have the same meanings as in section
75E.”
Part 3
Funding for charitable, benevolent or philanthropic institutions
Chapter 1
15
Public charitable collections
Preliminary
45
Regulation of public charitable collections
(1)
This Chapter regulates public charitable collections, which are of the following
two types—
20
(a)
collections in a public place; and
(b)
door to door collections.
(2)
For the purposes of this Chapter—
(a)
“public charitable collection” means (subject to section 46) a charitable
appeal which is made—
25
(i)
in any public place, or
(ii)
by means of visits to houses or business premises (or both);
(b)
“charitable appeal” means an appeal to members of the public which
is—
(i)
an appeal to them to give money or other property, or
30
(ii)
an appeal falling within subsection (4),

(or both) and which is made in association with a representation that
the whole or any part of its proceeds is to be applied for charitable,
benevolent or philanthropic purposes;
(c)
a “collection in a public place” is a public charitable collection that is
35
made in a public place, as mentioned in paragraph (a)(i);
(d)
a “door to door collection” is a public charitable collection that is made
by means of visits to houses or business premises (or both), as
mentioned in paragraph (a)(ii).
(3)
For the purposes of subsection (2)(b)—
40
(a)
the reference to the giving of money is to doing so by whatever means;
and

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 1 — Public charitable collections
54

(b)
it does not matter whether the giving of money or other property is for
consideration or otherwise.
(4)
An appeal falls within this subsection if it consists in or includes—
(a)
the making of an offer to sell goods or to supply services, or
(b)
the exposing of goods for sale,
5

to members of the public.
(5)
In this section—
“business premises” means any premises used for business or other
commercial purposes;
“house” includes any part of a building constituting a separate dwelling;
10
“public place” means—
(a)
any highway, and
(b)
(subject to subsection (6)) any other place to which, at any time
when the appeal is made, members of the public have or are
permitted to have access and which either—
15
(i)
is not within a building, or
(ii)
if within a building, is a public area within any station,
airport or shopping precinct or any other similar public
area.
(6)
In subsection (5), paragraph (b) of the definition of “public place” does not
20
include—
(a)
any place to which members of the public are permitted to have access
only if any payment or ticket required as a condition of access has been
made or purchased; or
(b)
any place to which members of the public are permitted to have access
25
only by virtue of permission given for the purposes of the appeal in
question.
46
Charitable appeals that are not public charitable collections
(1)
A charitable appeal is not a public charitable collection if the appeal—
(a)
is made in the course of a public meeting; or
30
(b)
is made—
(i)
on land within a churchyard or burial ground contiguous or
adjacent to a place of public worship, or
(ii)
on other land occupied for the purposes of a place of public
worship and contiguous or adjacent to it,
35

where the land is enclosed or substantially enclosed (whether by any
wall or building or otherwise); or
(c)
is made on land to which members of the public have access only—
(i)
by virtue of the express or implied permission of the occupier of
the land, or
40
(ii)
by virtue of any enactment,

and the occupier is the promoter of the collection; or
(d)
is an appeal to members of the public to give money or other property
by placing it in an unattended receptacle.
(2)
For the purposes of subsection (1)(c) “the occupier”, in relation to unoccupied
45
land, means the person entitled to occupy it.

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 1 — Public charitable collections
55

(3)
For the purposes of subsection (1)(d) a receptacle is unattended if it is not in the
possession or custody of a person acting as a collector.
47
Other definitions for purposes of this Chapter
(1)
In this Chapter—
“charitable, benevolent or philanthropic institution” means—
5
(a)
a charity, or
(b)
an institution (other than a charity) which is established for
charitable, benevolent, or philanthropic purposes;
“collector”, in relation to a public charitable collection, means any person
by whom the appeal in question is made (whether made by him alone
10
or with others and whether made by him for remuneration or
otherwise);
“local authority” means a unitary authority, the council of a district so far
as it is not a unitary authority, the council of a London borough or of a
Welsh county or county borough, the Common Council of the City of
15
London or the Council of the Isles of Scilly;
“prescribed” means prescribed by regulations under section 63;
“proceeds”, in relation to a public charitable collection, means all money
or other property given (whether for consideration or otherwise) in
response to the charitable appeal in question;
20
“promoter”, in relation to a public charitable collection, means—
(a)
a person who (whether alone or with others and whether for
remuneration or otherwise) organises or controls the conduct of
the charitable appeal in question, or
(b)
where there is no person acting as mentioned in paragraph (a),
25
any person who acts as a collector in respect of the collection,
and associated expressions are to be construed accordingly;
“public collections certificate” means a certificate issued by the
Commission under section 52.
(2)
In subsection (1) “unitary authority” means—
30
(a)
the council of a county so far as it is the council for an area for which
there are no district councils;
(b)
the council of any district comprised in an area for which there is no
county council.
(3)
The functions exercisable under this Chapter by a local authority are to be
35
exercisable—
(a)
as respects the Inner Temple, by its Sub-Treasurer, and
(b)
as respects the Middle Temple, by its Under Treasurer;

and references in this Chapter to a local authority or to the area of a local
authority are to be construed accordingly.
40
Restrictions on conducting collections
48
Restrictions on conducting collections in a public place
(1)
A collection in a public place must not be conducted unless—
(a)
the promoters of the collection hold a public collections certificate in
force under section 52 in respect of the collection, and
45

Charities Bill [HL]
Part 3 — Funding for charitable, benevolent or philanthropic institutions
Chapter 1 — Public charitable collections
56

(b)
the collection is conducted in accordance with a permit issued under
section 59 by the local authority in whose area it is conducted.
(2)
Subsection (1) does not apply to a public charitable collection which is an
exempt collection by virtue of section 50 (local, short-term collections).
(3)
Where—
5
(a)
a collection in a public place is conducted in contravention of
subsection (1), and
(b)
the circumstances of the case do not fall within section 50(6),

every promoter of the collection is guilty of an offence and liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
10
49
Restrictions on conducting door to door collections
(1)
A door to door collection must not be conducted unless the promoters of the
collection—
(a)
hold a public collections certificate in force under section 52 in respect
of the collection, and
15
(b)
have within the prescribed period falling before the day (or the first of
the days) on which the collection takes place—
(i)
notified the local authority in whose area the collection is to be
conducted of the matters mentioned in subsection (3), and
(ii)
provided that authority with a copy of the certificate mentioned
20
in paragraph (a).
(2)
Subsection (1) does not apply to a door to door collection which is an exempt
collection by virtue of section 50 (local, short-term collections).
(3)
The matters referred to in subsection (1)(b)(i) are—
(a)
the purpose for which the proceeds of the appeal are to be applied;
25
(b)
the prescribed particulars of when the collection is to be conducted;
(c)
the locality within which the collection is to be conducted; and
(d)
such other matters as may be prescribed.
(4)
Where—
(a)
a door to door collection is conducted in contravention of subsection
30
(1), and
(b)
the circumstances of the case do not fall within section 50(6),

every promoter of the collection is guilty of an offence and liable on summary
conviction to a fine not exceeding level 5 on the standard scale.

This is subject to subsection (5).
35
(5)
Where—
(a)
a door to door collection is conducted in contravention of subsection
(1),
(b)
the appeal is for goods only, and
(c)
the circumstances of the case do not fall within section 50(6),
40

every promoter of the collection is guilty of an offence and liable on summary
conviction to a fine not exceeding level 3 on the standard scale.
(6)
In subsection (5) “goods” includes all personal chattels other than things in
action and money.