OPERATIONAL GUIDANCE

POOLING SCHEMES AND POOL CHARITIES

MODEL SCHEME - SINGLE POOL CHARITY WITH SOLE TRUSTEE

OG 49 D2 - 2 October 2003

Divisional responsibility

For action:

Regulatory Function

Index to further related information

1.

Definitions

In this Scheme:

"the participating charities" means the charities identified [at the beginning of this Scheme] [in the schedule to this Scheme];

"the pool charity" means the charity created by clause 2 of this Scheme;

"the trustee" means the trustee of the pool charity.

2.

Administration

[See OG 49 B2 which explains why two separate pool charities may be needed.]

(1)

The trustee may combine the investments and moneys belonging to the participating charities [in permanent endowment funds] [in permanent or expendable endowment funds] [in expendable endowment or income reserve funds] [in income reserve funds] [in any funds] into one pooled fund.

(2)

The pooled fund will:

(a)

constitute a charity (the pool charity); and

(b)

be a common investment fund within the meaning of section 24 of the Charities Act 1993 and a pooling scheme fund within the meaning of The Financial Services and Markets Act 2000 (Exemption) Order 2001 (SI 1201/2001).

(3)

This Scheme is a common investment scheme within the meaning of the Charities Act 1993.

[Add the following sub-clause where a uniting direction is required:]

(4)

Under the power provided by section 96 of the Charities Act 1993, and subject to any further direction, the Commissioners direct that all the charities administered by the [insert name of trustee] as at the date of this Scheme, including the common investment fund established by this scheme, will be treated as a single charity for the purposes of Part II (registration) and Part VI (accounting) of the Charities Act 1993.

3.

Name of the pool charity

(1)

The name of the pool charity will be the [Insert name] Common Investment Fund.

(2)

The trustee may by resolution amend the name of the pool charity with the prior written approval of the Commissioners. The trustee must promptly send to the Commissioners a copy of any amendment made.

4.

Trustee

[Insert name of body corporate or other trustee body] is the trustee of the pool charity.

5.

Additions to assets of the pool charity

The trustee may add to the assets of the pool charity:

(1)

any additional investments and moneys of the participating charities held in the funds referred to in clause 2(1);

(2)

any investments and moneys held in equivalent funds to those referred to in clause 2(1) and belonging to any other charity of which the trustee is trustee (unless such addition is expressly precluded by or would be inconsistent with the trusts of the charity concerned).

6.

Share in the assets of the pool charity

Subject to the provisions of this scheme, each of the participating charities having investments or moneys in the pool charity will be entitled to the capital and income of the pool charity in proportions determined by reference to:

(1)

the amount or value of the assets transferred to the pool charity by or on behalf of each participating charity; and

(2)

the value of the assets of the pool charity at the time of the transfers.

7.

Calculations

The trustee may obtain such valuations, and carry out and revise such calculations, as may from time to time be necessary for the purpose of settling, adjusting and regulating the respective interests of the participating charities in the pool charity.

8.

Rules

The trustee may make rules and regulations consistent with this Scheme for:

(1)

the administration and management of the pool charity; and

(2)

the charging of the costs of administering the pool charity to the participating charities.

9.

Reserve funds

(1)

The trustee may establish and maintain reserve funds for the following purposes:

(a)

avoiding fluctuations in the amounts of income distributed and generally for regulating the distribution of income;

(b)

meeting current or anticipated expenses properly payable out of income.

(2)

The trustee may from time to time withhold from distribution such amounts of income as it thinks fit and credit them to the reserve funds.

(3)

Any sum which is subsequently applied from the reserve funds must be treated as if it had accrued as income at the time the application is made.

10.

Questions relating to the Scheme

The Commissioners may decide any question put to them concerning:

(1)

the interpretation of this Scheme; or

(2)

the propriety or validity of anything done or intended to be done under it.

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