OPERATIONAL GUIDANCE

POOLING SCHEMES AND POOL CHARITIES

MODEL SCHEME - TWO POOL CHARITIES WITH SOLE TRUSTEE

OG 49 D4 - 26 October 2001

Divisional responsibility

For action:

Charity Support Division
NHS Charities Section

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 charities" means the charities created by clause 2 of this Scheme;

"the trustee" means the trustee of the pool charities.

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. The name of the pooled fund will be the [Insert name] Capital Common Investment Fund.

(2)

The trustee may combine the investments and moneys belonging to the participating charities [in income reserve funds] [in expendable endowment or income reserve funds] [in expendable endowment funds] [in any funds] into one pooled fund. The name of the pooled fund will be the [Insert name] Income Common Investment Fund.

(3)

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

(4)

Each pooled fund will:

(a)

constitute a charity (the pool charities); 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 Act 1986 (Restriction of Exemption) Order 1999.

(5)

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:]

(6)

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 [insert name of trustee] as at the date of this Scheme, including the common investment funds 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.

Trustee

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

4.

Additions to the assets of the pool charities

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

(1)

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

(2)

any investments and moneys held in equivalent funds to those referred to in clause 2(1) and 2(2) 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).

5.

Share in the assets of the pool charities

Subject to the provisions of this scheme, each of the participating charities having investments or moneys in either pool charity will be entitled to the capital and income of that 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.

6.

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 charities.

7.

Rules

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

(1)

the administration and management of the pool charities; and

(2)

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

8.

(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.

9.

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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