Charity Trustees have a legal duty to ensure that the charitable assets held are both invested appropriately and used for carrying out the charity’s objects.
The Charity Commission are currently in the process of writing to Trustees in respect of their ‘Revitalising Trusts Programme’ which aims to assist dormant, ineffective or inactive charities, to ensure that their funds are not ‘lost’ and instead effectively provide local charities with much needed support.
In instances where charities are not spending a sufficient proportion of its income, the Charity Commission are currently contacting Trustees with suggestions such as:
- Transferring the charity’s fund to a local Community Fund or to a charity with similar objects;
- Considering winding up the charity in line with the dissolution clause in the governing document; or
- Considering amendments to the purpose of the charity in order that it can fulfil its purpose and undertake valuable charitable activities again.
If you receive a letter or e-mail regarding the Revitalising Trusts Programme, it is important that this is acknowledged as the Charity Commission has a statutory duty to ensure compliance with charity law and will look at all regulatory options should no action or response to their letter be made within four weeks.
If you receive a letter regarding this and would like a discussion as to what options are available to you, please contact Richard Hamilton in the Braintree Office on 01376 326266.
> Posted by Richard Hamilton