Posted on August 24, 2007 - by Keith Waters

Does Your Church Have Any Public Benefit…..The Government Is Not Sure

Does your Church benefit from claiming tax back on donations given via Gift Aid?
Are you aware that Christian Churches might loose this benefit?

The Charities Act 2006 removed the legal presumption that charities established for the advancement of religion have purposes that are for the public benefit.

‘Public benefit’ is not defined in the Charities Act 2006 and it has specifically been left to the Charity Commission to consult on the matter. Christian churches & charities will now have to prove their ‘public benefit’ to the Charity Commission.
Following on from a consultation on the draft public benefit guidance there are a number of other consultations on which Christian charities are urged to respond.

The Government plan is that each church will have to prove its ‘public benefit’ every year. Those who fail to persuade Civil Servants would be de-registered.
The oddly named Office of Third Sector is consulting on changes to the Accounting and Reporting Framework, this will end on the 14 September 2007 with 3 questions specific to public benefit, see http://www.charitycommission.gov.uk/enhancingcharities/pbaccrep.asp and

http://www.cabinetoffice.gov.uk/third_sector/documents/charity_act/pb_reporting.pdf 
As part of an extensive overhaul of charity registration and management of charities the Commission has published a consultation document, looking at whether charities which do not appear to meet a ‘public benefit test’ should lose their rights to Registered Charity status, including tax advantages through Gift Aid.

The Layers Christian Fellowship has submitted an excellent response which can be found at (http://www.christianconcernforournation.co.uk/Latest/docs/Charities.pdf)

Church leaders and trustees of Christian organisations should write to the addresses below and respond to the consultations, particularly those on public benefit matters, to demonstrate the depth of concern amongst Christian Churches who are endeavouring to serve the communities in which we live.

The address for the Office of the third sector is:

Helen Morgan
Office of the Third Sector,
Cabinet Office
35 Great Smith Street,
London SW1P 3BQ
E-mail: helen.morgan@cabinet-office.x.gsi.gov.uk
(Mark responses: ”Charities Accounts and Reports – Consultation”).

The address for the Charity Commission is:

Charity Commission Direct,
PO Box 1227, Liverpool, L69 3UG, or email
Email addresses: leo.rose@charitycommission.gsi.gov.uk
(Mark responses:” Decision Review-consultation”)
ann.marshalsea@charitycommission.gsi.gov.uk
(Mark responses: “Complaints and Customer feedback-consultation”)

The address for the Ministry of Justice is:

Jenny Patterson
Tribunals Service
Ministry of Justice
Business Development Team
Zone 1.02
1st floor, 4 Abbey Orchard Street,
London SW1P 2BS
E mail address: ctconsultation@tribunals.gsi.gov.uk 
(Mark responses: “Draft Charity Tribunal Rules 2007-Consultation”)