Latest News from Baptist Union Corporation
Financial Planning
- A number of churches have contacted us with concerns about the implications for their minister and deacons of their financial situation. In particular they have been concerned about the long term consequences of expenditure exceeding income and the possibility of charity trustees incurring personal liability if the church falls into debt. If the church does become insolvent then there may be implications for personal liability and we would always encourage churches to be realistic in their budgeting and to take appropriate action well before serious financial difficulties become a reality. You may find the BUC guideline leaflet F9 Charity Reserves helpful.
HMRC Fit and Proper Person Test
HMRC have provided helpful guidance about how Charity Trustees can provide Churches with confirmation that they are suitable people to be involved in the day to day management and control of the church's assets and finances. The information can be found at: -
http://www.hmrc.gov.uk/charities/guidance-notes/chapter2/model-dec-ff-persons.pdf
HM Revenue and Customs now expect each of the church's charity trustees to complete and lodge with the church records (not HMRC) a declaration along the lines of the form provided to show their suitability to hold office.
Sending donations abroad
The Finance Act 2010 emphasises the need for Charities to take special care when sending donations abroad. Money from church funds can be sent where they are sure that the recipients will properly use such funds for the specified charitable purposes. HM Revenue and Customs is able to ask for evidence to justify that the funds have been used for charitable purposes. The Revenue will take into account the charity's knowledge of the overseas organisation; its previous relations with the overseas organisation; the past history of the overseas organisation and whether the donation is a single contribution or part of a continuing commitment, and the reports the church has received about the use of the money. If there is significant doubt it is better to send donations for individuals or charities abroad through a reputable and experienced UK charitable organisation that can ensure that funds are used properly.
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