Welcome to our November edition of the Newsletter!

An old rhyme begins “Remember, remember 5th November”. This particular November has been, and continues to be, memorable for a number of reasons both globally and nationally.

The election, in the United States, of a former President for a second term is likely to have global implications. At home, fallout from the budget may well directly affect church finances as members’ incomes are reduced by higher living costs.

New legislation on employment rights, workers protection not to mention the Makin report and the subsequent resignation of the Archbishop of Canterbury all serve to make this November memorable for different reasons.

Are we exploring many of these in the newsletter?

As always, we hope that this month’s Newsletter fires the imagination and stimulates the grey cells.

1. What’s new
   • Autumn Budget Statement
   • Employment Rights Bill
   • Workers’ protection Act 2023 – Sexual Harassment
   • Burial & Cremations Law Consultation
   • Charity Commission – care needed when making donations
   • Safeguarding Imperatives – Keith Makin’s Report into Church of England’s handling of the allegations against the late John Smyth Q.C
2. Points to Ponder
   • The Church providing NHS type services
   • Fallout from elections – can we overcome our differences?
   • Anglican / Methodist Covenant Anniversary
   • Churches Together in England – A Good News Story
   • Importance of Robust anti-theft procedures
   • Trustees recommending the role to others
   • Advent Approaches, Christmas events beckon
3. Helpline Q&A
   • Length of time accounting paperwork needs to be retained
   • Christmas Bonus Payments to Ministers / Pastors
   • Guidance on Gift Aid Administration
4. Partners in Ministry
   • easyfundraising
   • Ecclesiastical Insurance
5. Autumn Training Programme
6. Final Thought
   • Thank you for your support!

God bless,

Ashley Ellis
ACAT Executive Officer

Employment Rights Bill

Published on 18th October the Employment Rights Bill seeks to implement proposals which were outlined in the Labour Party’s pre-election manifesto. The proposals apply to all employers irrespective of the number of employees. Churches employing staff should take careful note of the main points summarised below:

• Removes current two-year qualifying period for protections from unfair dismissal, these rights apply from the first day.
• Ends zero hours contracts.
• Ends the practice of terminating employment and then re hiring.
• Removes the lower earnings limit for all workers on statutory sick pay and cuts out the waiting period before sick pay come into operation.
• Large employers will be required to create action plans on addressing gender pay gaps.
• Greater job security will be provided for pregnant women and new mothers, together with support for women going through the menopause.
• A new Fair Work Agency will be created combining existing enforcement bodies with a view to enforcing employee rights and supporting employers looking for guidance legal compliance.
• The Strikes (Minimum Service Levels) Act 2023 will be repealed
• Flexible working will become more accessible and requires employers to justify the refusal.
• Age pay bands will be removed.

In addition to the bill, the government published a policy paper Next Steps to Make Work Pay. This outlined its wider approach to employment rights, including some reforms outside of this bill. It also sets out the government’s intentions for future consultations and implementation of some of the measures in the Bill. Consultations on these reforms are expected to commence in 2025 with full implementation during 2026.

These proposals will have far reaching implications for employers and it is important that churches employing staff set an example by ensuring full compliance.

Workers’ protection Act 2023 – Sexual Harassment

With effect from 26th October, employers have a new duty enshrined in law under the Equality Act 2010 to take reasonable steps to protect employees from sexual harassment. The Act provides new guidance for employers on how to protect staff.

Regrettably churches can mistakenly sometimes ignore the possibility of sexual harassment and therefore not take such legislation as seriously as perhaps they should. 

Burial & Cremations Law Consultation

On 3rd October the Law Commission published a consultation paper “Burial, Cremation and New Funerary Methods.” The paper included provisional proposals together with open questions on which it seeks a response from interested parties. In three stages,

1. Stage 1
   • Regulation of burial grounds
   • Grave reuse and reclamation.
   • Closed and disused burial grounds.
   • Exhumation.
   • Rights granted to the Commonwealth War Graves Commission.
   • Cremation law.
2. Stage 2 will consider new funerary methods, human composting and alkaline hydrolysis,
3. Stage 3 will consider the legality of a person’s wishes regarding their body after death in addition to those with the right to make decisions about bodies, and public health funerals.

A link to the full consultation paper is included below together with a questionnaire which can be submitted. The closing date for any submission being 9th January 2025. The Law Commission has held a series of meetings across the country.

It is also proposed to hold Online-only events in December, details to be published in due course.

Charity Commission – care needed when making donations

Churches are among those currently being encouraged to financially support those charities seeking to provide assistance for humanitarian relief for the continuing crisis in the Middle East.

The Disasters Emergency Committee (DEC) has launched an appeal to help civilians caught up in the humanitarian crisis in Gaza and Lebanon. As a consequence, the Charity Commission have published advice on how people can help civilians impacted by the ongoing conflict in the Middle East.

The Commission encourages supporting registered charities, which have infrastructure established within the region, to ensure that donations will reach those who need them. The guidance notes include some simple to follow steps to ensure that donors can give with confidence.

1. Consider donating through the DEC’s emergency appeal
2. If donating to other charities, check that the charity is registered and legitimate
3. Ensure the charity displays the Fundraising Badge and logo that says ‘registered with Fundraising Regulator’
4. Check the Fundraising Regulator’s Directory of organisations committed to fundraise in line with its Code of Fundraising Practice. 
5. Contact the charity direct, find out about the charity, how it is spending the donated funds. 
6. Ensure the charity is genuine before giving any financial information 
7. Take care when responding to emails or clicking on links within them 
8. Verify the charity’s name and registration number on the Charity Register.

It is worth emphasising that churches should always take steps to ensure the integrity of the charity they are supporting for whatever reason, and that donations are used for the purposes they are given.

Safeguarding Imperatives – Keith Makin’s Report into Church of England’s handling of the allegations against the late John Smyth Q.C

Much has been written following the publication of the independent Makin report. Commissioned by the Church of England’s National Safeguarding Team, into the handling of allegations of abuse by the late John Smyth QC, and the subsequent resignation of the Archbishop of Canterbury.

All of which serves yet again to emphasise the critical importance of effective safeguarding procedures and reporting processes in church life at every level. Human frailties are no excuse for abuse of any kind. This is an extremely sensitive area. One which as trustees and church leaders we all are responsible for. 

This may be a timely opportunity to review safeguarding protocols currently in place in our churches.

The Church providing NHS type services

The National Churches Trust has recently estimated that U.K. churches currently provide health related essential services to the value of £8.4 billion per year. Services and linked costs which ordinarily would be the responsibility of the NHS.

These services include recovery from addiction, mental health support, youth groups and food banks. All of which provide essential urgent support addressing community needs and easing pressure on the NHS.

It is further estimated that these savings are equivalent to employing 230,000 nurses or four per cent of total public health spending.

So, a question for us to consider. To what extent do the various activities within our church support our local community in these very practical and necessary ways?

The National Churches Trust are looking for volunteers to take part in a trial of their Social Value Calculator which was explored at the Conference. If you are interested, please contact Karl Newton: karl.newton@nationalchurchestrust.org

Fallout from elections – can we overcome our differences?

The recent presidential campaign in the USA and to a lesser extent our own general election last July, highlighted contrasting, diverse, political opinion throughout the various sections of society.

Our churches are also home to diverse opinions on faith, politics and a variety of other topics. Most of the time the views expressed are not divisive. However, in recent history the Church has grappled with and continues to contend with differing views on gender, same sexuality and women’s ministry.

Therefore, in our church fellowships are we able to agree to differ and accept situations where those in positions of authority may have fundamentally differing views to our own? How readily are we to leave a church and move to another because of an inability to overcome differences and find acceptable compromises?

It is frequently contended that faith communities should be an example of harmony and tolerance. Setting an example to secular society.

Anglican / Methodist Covenant Anniversary

This November marks the 21st anniversary of an Anglican-Methodist Covenant. By way of celebration local Methodist and Church of England churches are invited to share in this celebration during the course of this anniversary year.

Prayers to include in worship are suggested, as a way of celebrating this occasion, with a link below.

The prayers are based on those included on the occasion of the Covenant’s signing in 2003, together with a new prayer specifically giving thanks for this anniversary.

Churches Together in England – A Good News Story

On the last Sunday in September this year, Christians in Nailsworth, Gloucestershire celebrated the fiftieth anniversary of the formation of Christ Church, a coming together of Baptists, Methodists and Congregationalists. Rev. Dr. Alison Evans, Secretary of the Society for Ecumenical Studies, reflected on this good news story. A true example of Christians from different traditions able to join whilst retaining their individuality on matters of doctrine and church practice.

Local ecumenical partnerships and informational collaborations have been a feature of the church landscape for many years. In an increasingly divided and polarised society such initiatives can serve to demonstrate that groups with differing perspectives can work successfully together for the benefit of their communities.

It would be interesting to know whether your church has experienced a positive impact in its ministry from collaborative working with churches of different denominations and outlook.

Importance of Robust anti-theft procedures

It is always sad when someone who has served their church faithfully for several years succumbs to the temptation to steal. The recent report of a Torquay treasurer stealing almost £15,000 from the church due to having an “addiction to shopping” serves to emphasise the need to have robust procedures in place to minimise the risk of financial theft and fraud.

As a church treasurer or trustee, when was the last time your procedures for authorising and making payments, particularly those made online, were reviewed and approved by your church governing body?

Trustees recommending the role to others

A recent report by Melanie May on the UK Fundraising website indicated that 80% of the charity trustees contacted would or would be likely to recommend the role to others for the following reasons:

• The charity trustee role allows people to use their existing skills but in a new environment.
• As a charity trustee it assists becoming more connected with their local community.

Only 2% of those asked stated that trusteeship offers no benefit and less than 1% would not recommend taking on a trusteeship to others.

Whether these overall positive findings are also applicable to members of our church governing bodies is perhaps open to question. Trustees are, or certainly should be, humanly speaking, the driving force within a church, ensuing vision and ministry impact on the local community. Would you recommend becoming a member of your church governing body to someone within the fellowship who you felt possessed the required skills and personality?

If the answer is yes ACAT has a helpful short introductory webinar followed by a longer session about becoming a trustee. Keep an eye on our training page for when we next run these courses.

Advent Approaches, Christmas events beckon

The season of Advent is almost here once again and the process of planning and organising Christmas events and services (hopefully) well under way.

The historical Christian traditions regarding the Advent season go back to the 4th & 5th centuries aimed at preparing for the arrival of Jesus as saviour of the world. Candles being lit to herald bringing light into darkness.

Will our celebration of Advent and Christmas be any different this year to those previously?

To what extent are we aware of those in our communities who may be homeless, dependent on food banks, or just home alone. How are we proposing to share the joy and special meaning of this time with folk who may not be part of our regular church fellowship?

The Single Friendly Church network particularly highlights the needs of those single people who might appreciated being part of church celebrations and how to connect with them.

Length of time accounting paperwork needs to be retained

Q: I am a new Treasurer trying to clear some old paperwork. Please could you tell me where to look to find the legal lengths of time that accounting paperwork has to be kept e.g. invoices, bank statements, receipts for purchases, HMRC Gift Aid information etc?

A: Well done for taking on the role of treasurer – I am sure it is appreciated by the church. Our handbook, available in our online Member Area, has some relevant information: https://www.acat.uk.com/handbook/chapter-1-so-youve-been-asked-to-be-treasurer/ [login required] 2. Keeping the books

Record retention is a complex subject; the above is by no means definitive but merely deals with the records that might apply to churches. If there is any doubt central church authority and/or legal advice should be sought.

Christmas Bonus Payments to Ministers / Pastors

Q: We would like to give a Christmas bonus to our minister/pastor from church funds. He’s been with us 20 years so we consider this should be recognised. Do we have to put this through payroll?

A: All payments like this count as stipend/salary and must be ‘payrolled’ – in other words, they are subject to PAYE and NIC.

However, you mention 20 years’ service. This looks like an opportunity to consider a long service award. Please see an HMRC webpage about this https://www.gov.uk/expenses-and-benefits-long-service-awards. It does have to be a ‘non-cash’ award though so this will require some thinking through if you go down this route.

Guidance on Gift Aid Administration

Q: Please could you advise about the rules concerning the management of Gift Aid. We regularly receive gifts from folk who are able to donate funds under the Gift Aid rules. Recently, we have invited our folk to contribute funds which we will send to a Christian Charity in support of their appeal for relief funds. Some of the donations given to our church are given by folk signed up to our Gift Aid scheme. We do not believe that the charity to which we will send these funds can claim gift aid again on these donations. However, we believe we can claim gift aid on the donations that are given to us, add the Gift Aid that we will claim and then send the combined funds to the second charity knowing that they will be unable to claim Gift Aid on our payment to them. Please could you advise whether we will contravene any legislation if we do this.

A: The writer sees this enquiry fairly frequently so has written a helpline guide to explain the difference between ‘church’ and ‘conduit’ giving. Here is a comparison based on the words used in the HMRC guidance:

https://www.acat.uk.com/resource/gift-aid-and-gasds-guide/ – Login required

https://www.gov.uk/government/publications/charities-detailed-guidance-notes/chapter-3-gift-aid

easyfundraising

Back by popular demand, easyfundraising’s Advent Calendar returns to bring some festive cheer. Open the Advent windows from 1st – 24th December for daily chances to win up to £200 for your church. Plus, every window opened is an automatic entry to win a big Christmas Day prize of £1,000! To take part, sign your church up here: www.easyfundraising.org.uk/acat

Did you know easyfundraising isn’t just for Christmas? It’s a year-round fundraising solution for your church. Through easyfundraising, 8000 retailers, including eBay, John Lewis, Tesco, M&S, Trainline and many more will donate money to your church when your congregation shops with them. 

Ecclesiastical Insurance

Risk management guidance on a variety of very important issues can be easily accessed using the link below. All the relevant information is now in one place. There are videos, templates, checklists and forms to help churches manage risk effectively.

https://www.ecclesiastical.com/risk-management/church-insurance/

• Being a Treasurer: The Basics (3-session course)
  • Date: November 16, 23, 30
  • Time: 10 a.m. – 12 noon
• Gift Aid: Maximising the benefits and reducing the pitfalls
  • Date: December 3
  • Time: 10 a.m. – 1 p.m.

The programme for next term is coming together nicely.

We hope to open bookings soon for courses relating to Tax issues for Churches that trade, Accounting problems and pitfalls and the role of the treasurer.

Alongside these shorter courses, we hope to offer more detailed courses on Accruals accounting and Being a Trustee as well as repeating the ever-popular Being a Treasurer: The Basics.

Details will be available on the website and in subsequent newsletters.

Do get in touch if there is a particular course you would like to see in the programme during 2025. Please keep checking the newsletters, website and social media for details as they become available. Contact Cath Fox to discuss further on training@acat.uk.com.

The Charity Commission for England and Wales registers and regulates charities to ensure that the public can support charities with confidence. Through regular events, the Charities Engagement Team supports trustees and charity leaders to manage their charities effectively.

Webinars in the autumn term

Understanding Charity Structures
Date: Wednesday 11th December 2024
Booking Link: https://bookwhen.com/cetevents/e/ev-s19y-20241211120000

Charity no. 1072733 Registered address: Association of Church Accountants and Treasurers, C/O KM Accountants, 1st Floor, Block C, The Wharf, Manchester Road, Burnley, BB11 1JG.