DCH 168 THE BAPTIST UNION
THE BAPTIST UNION OF GREAT BRITAIN.
SUBMISSION TO JOINT COMMIHEE OF THE TWO
HOUSES OF PARLIAMENT
DRAFT CHARITIES BILL
INTRODUCTION
We welcome the Charities Bill which
includes many of the positive recommendations in
the report Private Action Public
Benefit. Specific comments are offered but we would ask the Committee
to understand that the lack of a comment on a particular section
does not signify indifference, but a decision to focus on points
of particular concern to us, and our churches.
Page numbers are taken from the top
of the page of the Draft Bill.
PART I
We welcome the preservation of the advancement
of religion as a charitable purpose in
clause 2(2)(c) and the recognition of
Regeneration in sections 2(2)(e) and 3(3)(b)(i). (p2)
We note the Public Benefit Test applies
to all charities. We note the basis of assessing Public Benefit
is unchanged. This is welcomed.
PART 2
We note the new structure for the Charity
Commission.
CHAPTER 2
We note the powers of the Commission
and Tribunal to determine "whether institutions are, or are
not, charities in clause 5 "1 C(2)1. (p4) We express some
unease concerning the limited grounds of appeal on points of
law only ( see
chapter 2 clause 6 "2C(1) (p6)) and that this appeal can
only occur with leave of the Tribunal or High Court.
CHAPTER 3
We note the proposed income threshold
of £100,000 and believe this is an acceptable level.
(In chapter 6 income and asset value
are used to determine whether an audit or independent examination
of accounts is necessary. If a similar link was made in
the criteria for registration
this would potentially disadvantage small churches with small
incomes but valuable buildings.)
CHAPTER 4
We welcome the attempt to deal with
moribund donations. In practice professional fundraisers will
include the statement mentioned in clause 14(2)(b) but smaller
charities may not be sufficiently
sophisticated to take advantage of this relief. We recognise that
a default cy-prés application might be 'a step too far'.
We welcome the emphasis on considering
the spirit of the gift and reference to contemporary circumstances
in clause
12 (3), (p13).
CHAPTER 5
Clauses 16 and 17. (p16&l7) We note
the power of the Commission to make directions and that this will
include custodian trustees. This may help overcome situations
where there is an
impasse.
Clause 18 (p17). We welcome the general
relaxation of publicity requirements.
Clause 21 (p21) We note the powers of
entry and understand the reasons why these are included but are
slightly cautious on the grounds of religious liberties. The committee
are no doubt aware that this is a sensitive area.
CHAPTER 6
Clause 22 (5), (p23). We have some concern
about the specific qualification requirements for qualified Independent
Examiners and Auditors. Whilst applauding the attempt to raise
standards this may raise costs for our churches who may in
future need to pay for these
services instead using a suitable, but not necessarily qualified,
volunteer.
Clause 23 (p24&25). We note the
duty of auditors to report to the Commission.
CHAPTER 7
We welcome the fact that the bill relaxes
the regulations dealing with the amendment of
Memoranda and Articles of Association
for Charitable Companies.
CHAPTER 8
We note the benefits of the proposed
system of Charitable Incorporated Organisations. The single reporting
structure and limited liability may encourage some of our churches
to choose this structure. This means they could hold their own
property and this would represent a significant change of practice.
The Baptist Union Corporation and certain
other trust companies have a primary role as holding trustee of
church property. At present this allows informal arrangements
relating to loans to be protected under the 'umbrella' of our
position as holding trustee. In future formal legal charges may
be required. This would raise costs.
CHAPTER 9
Trustee Remuneration. Clause 27 (p27-29).
We note that in "73B(6)(a) and (b), (p28&29) there is
clarification of who are connected persons.
We also note the criminal sanction in
Clause 28 "73C(4), is partially
relieved by sub section (5),.(p29-3O).
We express some concern for trustees who are in breach of the
rules by ignorance, but confirm our commitment to education of
leaders of local churches on
these matters.
Clause 29 (p30). We strongly welcome
the relief for trustees from liability
who have acted honestly and reasonably.
This is very important reassurance as we continue to recruit volunteer
trustees within Baptist organisations and churches.
CHAPTER 10
This section is particularly welcome
as we seek to apply resources to current activities in appropriate
ways. We often seek to wind up our many small endowment funds.
Anything to simplify the current process (especially the advertising
requirements) is welcome.
It is particularly important that the
ability to wind up these small endowment funds
(which may, for example, be capital
money arising from the sale of a field many years ago) is not
hindered because the original asset was land, and the main charity
(a Baptist church) still has current buildings
and property. This is a difficulty now. In anticipation of charity
registration it will be beneficial
to our churches and the Charity Commission if as
many small funds as possible can be properly expended.
We welcome Clause 33 "75(1)(a),
(p36), 75A(4), (p37) and 75A sections (1), (3), (8), (p37&38).
PART 3
We have no comments. Our churches would
not often be involved in these
kinds of fund raising initiatives.
Clause 44. We are delighted that the
Secretary of State has power to give financial assistance. We
are slightly puzzled by the wording of 44(1), (p55) which indicates
that the charitable institution must operate "wholly or mainly
in England". There is probably a good reason why Wales is
not mentioned. This seems strange however where the Commission
is specifically given responsibility for Wales earlier in the
bill. Two different systems could be cumbersome.
SCHEDULE 3 (p63)
We note the persons qualified to serve
on the Tribunal. We would express the hope that the
Lord Chancellor in seeking suitable
people would seek to maintain a representation from the
diverse groups within the charity sector,
including religious charities.
Linda Holder
Secretary to the Legal Committee
Baptist Union of Great Britain
21 June 2004
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