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OPERATIONAL GUIDANCE
ENDOWED CHARITIES: A TOTAL RETURN APPROACH TO INVESTMENT
MODEL ORDER FOR THE REPLACEMENT OF EXPENDITURE FROM A CHARITY'S INVESTMENT FUND
OG 83 C6-30 May 2001 |
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ORDER OF
THE CHARITY COMMISSIONERS FOR ENGLAND AND WALES
to authorise the expenditure of resources in the investment fund of the charity subject to replacement, under the power given in section 26 of the Charities Act 1993
Dated the
[Date of order]
For the charity known as:
[NAME OF CHARITY]
at
[Place], [County]
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1. |
Being satisfied that it is expedient in the interests of the charity that the trustees should do so, the Commissioners authorise the trustees to spend the sum of no more than £ [ ] from the charity's investment fund for the purpose of [ ]. |
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"Investment fund" means the resources which represent the value of gifts to the charity held on trust for investment (capital), and any other additions to those resources which are not the result of investment, plus that part of the unapplied total return which cannot, consistently with discharging the duty of even-handedness, be allocated to the trust for application (income) for the purposes of the charity under the power conferred by clause 1 of the total return Order. |
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The "total return Order" is the Order dated [ ], under which the charity trustees of the charity were authorised to adopt a total return approach to investment, and "unapplied total return" has the same meaning as in that Order. |
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2. |
The Commissioners direct the trustees, subject to any further direction: |
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(1) |
to inform the Commissioners when the sum referred to in clause 1 has been spent; and |
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(2) |
to use the power conferred by clause 1 of the total return Order in such a way as to ensure, as far as is practicable, that, by the end of a period of [ ] years from the date of this Order, the reduction in the real value of the assets of the charity held in the investment fund, which is the result of the expenditure authorised by this Order, is made good; and |
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(3) |
Subject to that, to continue to use the power conferred by clause 1 of the total return Order in accordance with the directions of that Order. |
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