Joint Committee on the Draft Charities Bill Written Evidence


DCH 247a Free Churches Group

From the Secretary of the Free Churches Group

The Free Churches Group is the umbrella body for 21 Christian denominations active in England and Wales with about a million people of all ages in our churches.

Consultation: advancement of religion a charitable purpose

We are grateful to have been involved in previous stages of the consultations leading to this Charities Bill and particularly welcome the thrust of Private Action, Public Benefit. The overall purposes of the Draft Charities Bill are therefore to be welcomed. We are glad that the advancement of religion is included as a charitable purpose. Our churches and church members engage in many other activities which fall under various headings within the other eleven proposed charitable purposes for which motivation begins in our faith. It is important, nonetheless, that providing people with opportunities for worship and religious fellowship continues to be recognised as charitable and that activities which spread the faith are also included in the charitable sector.

Gratitude for a consultative approach

Those who have stewardship responsibilities within our Churches have been particularly concerned with the proposed changes for Excepted Charities. We have been consulted over recent years by officials of the Charity Commission and the Home Office, who have given us time and opportunity to ask questions, but we have not always come to a common mind with them.

Excepting Regulations: inadequate cover

In particular, the 1996 Excepting Regulations (subsequently renewed in 2001 and 2002) were made without adequate consultation regarding the extent of the Free Churches. Many of our congregations were omitted from the coverage of the 1996 regulations. Correspondence with the Charity Commission led to assurances being given to some of those omitted. Others, including the Church of the Nazarene, British South District, were specifically informed that they were not required to register as charities. The Bill, as presently worded, would require all of these churches to be registered on the appointed day relating to section 3A (pages 16-19). Among our constituency, the 1996 Excepting Regulations cover the Methodist Church, United Reformed Church, Presbyterian Church of Wales and most Baptist and Congregational churches. It appears the 100 congregations of the Wesleyan Reform Union, 52 congregations of the Church of the Nazarene, most of the 27 congregations of the Free Church of England, about 90 congregations in the Independent Methodist Churches and 35 congregations in the Fellowship of Churches of Christ (all of which have understood themselves to be excepted or excused from registration as charities) will be obliged to be registered by the day the Act, as drafted, takes effect in this respect. These totals exclude those congregations with annual gross income exceeding £100,000 which we agree should reasonably be expected to make their return to the Charity Commission.

Independent churches

Beyond the denominations included in the Free Churches Group, we believe there are numerous independent chapels and churches which are at present not registered charities, being under the impression that if they have registered places of worship they are excused from charity registration.

Burden on lay officers

Over the years many churches have been accustomed to preparing a simple balance sheet of their financial assets and a straightforward income and expenditure account. These annual accounts have been submitted to a meeting of members of the church and congregation. Local lay officers count collections and verify receipts and payments. If faced with excessive demands for accounting in terms with which they are not familiar, even when offered the opportunity to make their returns on-line, many local churches and chapels would have difficulty finding lay volunteers willing to take on the responsibility. We urge the Joint Committee to ensure that the churches that would be swept into the registration procedure on the first day of the draft Bill's application are instead excepted until it is clear that the new Standard of Recommended Accounting Practice (SORP for Charities) will permit them to submit a simplified account to the Charity Commissioners.

Revd Geoffrey H Roper

Secretary

The Free Churches Group

27 Tavistock Square

London WC1H 9HH

freechurch@cte.org.uk

020 7529 8141





 
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