Does my Intermediate Body need to register as a charity?

Normally all organisations, including churches and religious organisations, with charitable objects and an annual turnover over £5,000 are required to be registered. For many years, most churches have been excepted from this general requirement on the grounds that their national bodies oversee local accounts sufficiently to ensure they are in keeping with charity law. That has been changing in recent years, especially with the Charities Act 2006, and there has been a steady stream of Intermediate Bodies which have become registered charities. This, however, is a choice, recommended by CTE, as the 2007 Exception Order specifies that excemption also covers partnerships of excepted churches.

The advantages of registering as a charity are:

• There is no doubt that you are in keeping with current charity law; without registration, there remains a question mark.
  
  
• Employment issues become much clearer since, ultimately, the Trustees are responsible.
  
  
• If you apply to funding agencies or trusts, they will ask for your registered charity number. They may not understand if you can’t give one.
  
  
• When you are a registered charity, you can have any deposits in a gross interest account without paying tax on the interest. It isn’t much when rates are low, but it’s better than nothing.

There are obvious advantages in sorting your constitution and registering as a charity at your leisure, rather than scrambling to do so if/when the rules change and it becomes compulsory.

Be aware that the Charities Aid Foundation has helpful financial services for charities.

(CEDOs are discussing this in their restricted area of the website, here.)