Latest News from Baptist Union Corporation
BUC Guideline leaflets:
The C04 Church Amalgamations and C29 Churches, Charities and Incorporation leaflets have been updated to highlight the implications of pension deficit issues. These can be found on the BUGB website here:
C29 Churches Charities and Incorporation
The following new guideline leaflets have been published:
C32 Boundaries, Fences, Hedges and Problems
Charitable Incorporated Organisations (CIOs):
Some churches have expressed an interest in this new form of charity structure. The Charity Commission has now published the first part of its guidance for anyone interested in setting up a CIO ahead of the expected implementation which may begin later this year.
A Charitable Incorporated Organisation (CIO) is an incorporated form of charity which is not a company. It only has to register with the Charity Commission and not Companies House and is only created once it is registered by the Commission. A CIO can enter into contracts in its own right and its trustees will normally have limited liability for the debts of the CIO.
The Commission has published its guidance to enable charities to decide if the CIO structure is the right one for them, and to familiarise themselves with the guidance ahead of implementation. The guidance will be added to over the coming months.
The documents may be subject to change once Parliament has agreed the regulations, however it is expected that any changes would be minor. The regulations which complete the legal framework for CIOs have not yet been debated by Parliament. Implementation will be phased, with new organisations among the first to be able to register as CIOs, and existing charitable companies being able to convert to CIOs towards the end of the implementation period. The timetable will mean that churches will fall within the later stages of the Commission’s phased approach.
The Charity Commission says that the CIO will be most suitable for small to medium-sized organisations that employ staff or enter into contracts. The guidance sets out the rules and the benefits for CIOs, how to register, what CIOs will have to do which is different from an unincorporated charity and what is involved in running a CIO including reporting requirements.
Many aspects of running a CIO will be the same as other forms of charity, but there are important differences and additional obligations on the trustees of a CIO which are set out in the guidance.
The Commission has also published model constitutions which the Baptist Union will consider with a view to producing a model document for Baptist churches, if at all possible. We will publish further information as this work progresses.
The Commission’s guidance and model constitutions are available here: www.charitycommission.gov.uk/Start_up_a_charity/Do_I_need_to_register/CIOs/default.aspx
Refuse Collection:
Some local authorities have attempted to charge churches for their refuse collections. Where premises are exempted from business rates they should be treated in the same way as domestic households, with refuse collected free of charge, with a wheelie bin, if this is normally provided. Refuse equivalent to the quantity normally generated by a domestic household, of around 240 litres, should be collected by the local authority. However, a local authority may charge if a receptacle is larger than the normal size, or if there is a much larger quantity of rubbish for disposal.
Different local authorities are approaching the situation in a variety of ways, some have set internal policies that suggest churches are not entitled to any free collections. Some are content to take away a limited amount of refuse, but help the local church by giving them a permit that allows them to deliver excess rubbish or recycling to a local recycling and waste centre.
Guidance was issued by Municipal Waste Policy (MWP), Waste Strategy Division, DEFRA, Floor 6, Ergon House, Horseferry Road, LONDON SW1P 2AL on 12 October 2007.
DEFRA is aware of confusion in some waste authorities over the status of waste from premises used as places of religious worship.
Paragraph 1 of Schedule 1 of the Controlled Waste Regulations classifies as household waste from a hereditament or premises exempt from local non-domestic rating by virtue of, in England and Wales, paragraph 11 of Schedule 5 to the Local Government Finance Act 1988. In practice, this means waste from places of religious worship. Authorities with waste collection duties must collect this waste and may not charge for its collection or disposal.
Under paragraph 11(1)(b) of Schedule 5 of the Local Government Finance Act 1988, the provision in paragraph 25 above also applies to buildings used in connection with the conduct of public religious worship such as an office or church hall. However, if the church, mosque, synagogue, etc. hires out such buildings to other groups not connected with the conduct of religious worship this would be a commercial activity and any waste arising from such use would be commercial waste for which a charge for both collection and disposal can be made.
Paragraph 15 of Schedule 2 of the CWR classifies waste from premises occupied by a charity as household waste for which an authority may charge for collection (but not disposal).
However, DEFRA is aware that some authorities are charging for collection of waste from charities located in places of worship. If the activities of the charity are in connection with the conduct of public religious worship the charity would be entitled to free waste collection as well as free disposal.
The Controlled Waste Regulations 1992 are still in force and here’s the link to the text of Schedule 2: http://www.legislation.gov.uk/uksi/1992/588/schedule/1/made.
Any church that has problems over collection of its own waste should quote Schedule 2 and the above guidance at the local authority concerned. If that doesn’t does not solve the problem then please let us know.
Some churches that operate coffee shops, pre-schools, or lunch clubs will need to pay for commercial collections where the quantity of refuse is greater than a normal domestic quantity,
Each case will be different, and churches may need to negotiate with their local authority, but some rubbish collection should be happening free of charge.
Planning Applications:
Many local authorities now publish the details of planning applications that they have received on their website. Churches need to be aware that when their neighbours are seeking planning permission the relevant plans and associated details can be altered by the applicant at any time before the planning department makes a formal decision. Difficulties have arisen for churches who have relied on initial plans to inform their judgements and comments on applications but who have subsequently found that plans have been altered to the church’s detriment. It is important that somebody within the church monitors the planning website so that the church can respond to any amendments to a planning application that will adversely affect them. The local authority will not contact neighbours directly to inform them of altered plans.
Cheque Signatories:
Cheques written from the church’s bank account must be signed by two signatories. Although a bank would allow these signatories to be related to each other churches are strongly advised not to allow two people from the same family to act together as signatories on the church account.
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