OPERATIONAL GUIDANCE

EXEMPT CHARITIES

EXEMPTIONS FROM THE 1993 ACT

OG 57 C4-01 March 2000

Divisional responsibility

For information:

All operational divisions

Contents

1. Specific exclusions for exempt charities from the 1993 Act
2. Registration

Meaning of expressions - list of Glossary terms used in this Guidance
Index to further related information

1. Specific exclusions for exempt charities from the 1993 Act

• section 3: the requirement to register (by s.3(5));

• s.6: our power to require a charity to change its name;

• s.8: our power to institute inquiries;

• s.9(1): our power to call for documents;

• s.16(6): our power to make Schemes without an application from the charity where the trustees have unreasonably refused or failed to apply;

• s.18: our power to act for the protection of charities (including our power under s.18(5)(b) to appoint trustees of our own motion);

• s.28(1): our power to give directions about the dormant bank accounts of charities;

• s.33(2): the need for us to authorise legal proceedings;

• s.36: restrictions on the disposal of land (but see s.37 for statements which have to appear on documents executed by exempt charities);

• s.38: restrictions on mortgaging (but see s.39 for statements which have to appear on mortgages executed by exempt charities);

• ss.41-45: preparation, examination and submission of accounts, reports and returns (instead, s.46 imposes a statutory duty on exempt charities to keep proper books of account - see OG 57 B1 section 1);

• s.74: the power of small charities to transfer their property to another charity and to modify their trusts;

• s.75: the power of small charities to spend permanent endowment.

2. Registration

Exempt charities are not required to be registered and, since 1 September 1992, may not register on a voluntary basis. The voluntary registration of any exempt charity before 1 September 1992 ceased to have any effect from that date: they are not allowed to describe themselves as registered charities nor use a registered number.

At present, we do not intend to issue individual certificates of exemption to charities. The following wording may be used if it is necessary to write to trustees to confirm their position:

• We confirm that the trusts of the [ name of institution ] as at the date of this letter are charitable and that the charity is exempt from registration under the provisions of [the second schedule to the Charities Act 1993] [Section 24(8) of the Charities Act 1993].

(This would apply to any relevant statute, not just this one.)

The letter should be signed by an officer at PB4 level.

The following words and phrases are defined in the Glossary of Terms:

•

the 1993 Act

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