Even small charities may own property - buildings, cash, investments, land or specific items (for example, museum exhibits, artworks, etc). This section explains some of the common issues that can arise.

• Buying or renting property
• Selling or letting property
• Transferring property to another charity

Buying or renting property

If your charity needs premises to work from, there are a few things to think about before you buy or rent.

1. Is the property suitable for its intended use?
2. Is the price or rent to be paid a fair one compared with similar properties on the market?
3. Can the charity afford the cost of buying or renting the property?
4. If the charity is getting a lease of the property, are the terms of the lease fair and reasonable?
5. Do you need professional advice?
6. (If you're not a company) have you remembered that the property must be held on trust for your charity? Your solicitor will be able to help you with this.
7. Would it avoid possible disputes if you involved the local community in the proposals to buy or rent the property?

In nearly all cases, charities can purchase or rent property without asking for permission from us. However, there are two situations where we need to be involved and you should contact us:

• If you want to buy property from one of your charity's trustees, one of their relatives or close associates.
• If you want to use a permanent endowment (see below) to buy property that isn't freehold - in other words, property which won't permanently benefit the charity because it has a lease that will expire.

In some cases, charities can also acquire property as an investment. Generally speaking these tend to be larger charities. Not all charities can invest in land - your charity's governing document will have to allow this.  If you want to learn more about investing in land, see our guidance on acquiring land.

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Selling or letting property

Generally, your charity can sell or let property if it's no longer required to help meet its aims. Alternatively you may want to exchange one property for another or let someone else use it for a specific purpose ('grant an easement'). There are a few things you should think about first.

1. Do the charity trustees have proof of ownership of the property?
2. Will selling or letting out the property be the best thing for the charity?
3. Have you taken professional advice about the value of the property, and the best way of marketing it?
4. If you're exchanging property, have you taken professional advice about the suitability and value of the land you are receiving in exchange?
5. Are you selling or letting for the best price you can reasonably get?
6. If you're letting, will the requirements of the lease protect the charity?
7. Would it avoid possible disputes if you involved the local community in the proposals to buy, rent or exchange the property?

There are a few instances where you should contact us:

• If your charity doesn't have the power to sell or let out the property
• If you want to sell or let out land which your governing document says must be used for a particular purpose ('designated land')
• If you want to sell or let to someone connected with the charity in some way ('connected person')

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Transferring property to another charity

There is a simplified process for small charities which aren't companies to transfer their property to another charity. This includes both land and funds, even if it's permanent endowment. It doesn't apply to charities with designated land.

You can use the simplified way to transfer property if all the following apply to your charity:

• your gross annual income in the last financial year was less than £10,000
• your charity is unincorporated (not a company)
• the property doesn't include designated land
• the transfer is to another charity or charities
• the purposes of the charity or charities which will receive your property are similar to the purposes of your charity
• you're satisfied that the transfer is the best way of ensuring the future use of the property for your charity's purposes

There is guidance on how to make the transfer, and an online form to fill in.

• Transfer of property for unincorporated charities: How smaller non-company charities can transfer their assets to other charities
• Online form: transferring assets

See also:

• Spending permanent endowment

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