New application forms in place
January 2008
From 1 December 2007 the Charity Commission has new forms and are unlikely to accept old application forms, and could well return papers to be redrafted
Until the provisions of section 9 (3A)(6)(b) of the Charities Act 2006 are implemented (currently scheduled for summer 2008), voluntary registration for those who gross income is under £5,000 is going to be less than straightforward.
The Charity Commission guidance now says:-
‘Organisations with an annual income of less than £5000 from all sources will be able to seek voluntary registration when the part of the Charities Act 2006 that permits this comes into effect. Until then the Commission's priority is to complete the programme of registering previously excepted and exempt charities: we are not required to register a prospective charity that cannot demonstrate that it has already achieved the minimum income.
‘Under £5000 applications are only to be considered in exceptional circumstances, such as high-profile organisations likely to receive significant funding in a very short time and where public confidence in charity would be diminished if they were not seen to be exercising their regulatory function or where the organisation can provide specific evidence that significant grant funding rests upon it being a registered charity.’
The Commission suggests small charities can ask HMRC for tax relief and an HMRC number will provide the evidence of charitable status. Alternatively it suggests the setting up of a named account with an existing charity until the required level of income is attained.
New organisations facing the prospect of rapid growth now may face having to consult advisors twice: once to formulate a governing document and a second time when the income breaks the £5K ceiling.
"Stephen Claus, Head of Charities at Birmingham and London law firm Martineau Johnson said it is unfortunate the Commission has not been given sufficient resources to enable the new law to be implemented now, rather than people having to rely upon HMRC for what is after all a Charity Commission function".
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