Spring has arrived. To be precise at 9.01 am on Thursday 20 March. Winter is behind us. Nature’s green shoots are beginning to flower, demonstrating new beginnings.

Spring is also a time when many members will be involved in annual church meetings. It is very easy to regard such events as formalities to be endured rather than opportunities to demonstrate that the body of Christ is alive and in good heart with a profound and practical response to the uncertainties of life.

This newsletter is a compilation of the various articles now posted weekly on our website. As always, we hope you find them helpful, informative and encouraging.

1. What’s new
   • Places of worship protective security scheme
   • Charity law changes in Scotland: Charities (Regulation and Administration) (Scotland) Act 2023
   • Gift Aid Claims on the Death of a Donor
   • Council tax exemption on empty buildings used for religious reasons
   • Charity investment principles – new guidance
   • Possible consequences of Listed Places of Worship Grant Scheme cap on claims from 1 April
2. Points to Ponder
   • Young christians and Bible readers are the most generous givers
   • What principles and priorities underpin our charitable giving?
   • Changing the traditional model of Church
   • How effective is your church’s governing body?
3. Also of Interest
   • Give as you Live – a member’s perspective
4. Helpline Q&A
   • Handling cash and cheques at financial year-end
   • Rounding figures in the annual reports
   • Corporation Tax
   • Employment allowance
5. Partners in Ministry
   • CAF Bank
     • Financing the future: A guide for church treasurers & trustees
     • How to harness high value giving
   • Kingdom Bank
     • Guiding churches through property projects
   • ACIE
     • ACIE annual England & Wales conference 2025
   • Ecclesiastical
     • Updated List of grant funders for churches
     • Planning Easter events
   • JustMoney Movement
     • Let’s make banking fairer
   • easyfundraising
     • 82,000 reasons not to miss out!
6. Spring Training Programme
7. Charities Engagement Team – Upcoming webinars
8. Final Thought

God bless,

Ashley Ellis
ACAT Executive Officer

Places of worship protective security scheme

Updated guidance on the Places of Worship Protective Security Scheme was published on 13 February.

The scheme is provided free of charge by the Home Office and protects places of worship and associated community centres in England & Wales. It is open to all faiths except Muslims and Jewish communities, which have their own schemes. Your church can get funding for physical security measures, such as CCTV, alarms, gates, and secure fencing.

What is included in the Scheme?

• Physical security
• CCTV
• Alarms
• Security gates and fencing

Who may apply?

• A place of worship.
• An associated community centre where religious worship regularly takes place.
• You will need to be a registered charity or one that is excepted

The Scheme is not currently accepting applications, but information and dates will be published on the government website when it opens again.

Charity law changes in Scotland: Charities (Regulation and Administration) (Scotland) Act 2023

Following the charity law changes incorporated into the Charities Act 2022, which finally came into force in England & Wales on 7 March 2024, changes to charity law in Scotland will be completed by mid-2025.

Two important changes to highlight are:

1. Publication of Charity Accounts

From the end of 2025, all submitted annual accounts, Trustees’ Annual Reports, and external scrutiny reports (independent examiners’ reports) will be publicly available on the Scottish Charity Register for at least 5 years. OSCR will publish these documents as received, without redacting personal information. Church charities will need to think carefully about what personal data they include in their accounts and check they are complying with data protection regulations.

2. Trustee Details

From summer 2025, charities will need to supply OSCR with specific details for each trustee – name, home address, email, phone number and date of birth. OSCR will hold this information internally, and trustee names will be published on the Scottish Charity Register. Charities can ask for a trustee’s name to be withheld from the public register if there are safety or security concerns.

If you are a Scottish charity, please read about the full changes below.

Gift Aid Claims on the Death of a Donor

As churches, we occasionally experience the passing of members of our congregations. Some of these members may have been regular givers and signed a Gift Aid declaration. A recent update from the Charity Tax Group clarifies what should happen regarding Gift Aid when a donor passes away.

To put it simply, once a person dies, their Gift Aid declaration ceases to be valid, and no further Gift Aid should be claimed. HMRC understands that charities may not always be immediately aware of a donor’s passing. However, it has confirmed that any Gift Aid claimed after a donor’s date of death must be repaid once the charity is made aware of their passing.

As church treasurers or Gift Aid secretaries, we should ensure that we promptly update our records when a donor passes away. This will help prevent the need to repay any Gift Aid claimed in error.

Council tax exemption on empty buildings used for religious reasons

On 18 February, the Minister for Housing, Communities and Local Government confirmed that a property may be exempt from Council Tax where it is unoccupied but being held for occupation by a minister of any denomination.

An extract from the London Borough of Harrow website also confirms this.

So, if your church is without a minister and the vicarage/manse is empty, please ensure that you claim a council tax exemption.

According to government records, some 1203 such properties received an exemption in 2024.

Charity investment principles – new guidance

On 16 January, the Charity Finance Group, in conjunction with others, published new guidance principles to assist charity trustees in making investment decisions.

The Charity Investment Governance Principles (GIGP) were developed following the Butler-Sloss v Charity Commission 2022 case regarding the charity trustees’ general powers of investment and charitable purposes.

The CIGP builds upon Charity Commission CC14 “Investing Charity Money” guidance for trustees.

CIGP’s starting point aims to relate the governance principles to a charity’s circumstances in three categories

• Must – practice is required by law and the Charity Commission
• Recommended – practice is recommended
• Consider – opportunities exist for deeper work on the principles

CIGP main headings

• Purpose of investments
• Leadership
• Integrity
• Decision Making & Risk Control
• Effectiveness
• Equality, Diversity and Inclusion
• Openness and accountability. 

These principles are intended for all involved in charity governance in England & Wales. It is envisaged that they will evolve over time from user feedback.

Possible consequences of Listed Places of Worship Grant Scheme cap on claims from 1 April

In our February newsletter, we reported that the Government was extending the Listed Places of Worship Grant Scheme until 31 March 2026, with a total budget of £23 million. The scheme will continue to enable religious organisations to claim grants covering eligible VAT costs paid towards repairs and renovations.

However, a new cap will be introduced, limiting the total amount that any individual place of worship can claim to £25,000 in the coming year. Places of worship can make more than one claim, but the total of their claims should not exceed £25,000.

The financial consequences could be significant for churches with listed buildings that qualify for a grant under the scheme. The Church Times reported that one church faces a shortfall of £600,000 as a result of the claims limit.

If your church receives a grant or intends to apply for one from the scheme, it would be advisable to verify if any application might exceed the claim limit and how any shortfall might be met.

Young christians and Bible readers are the most generous givers

For many of us, the financial health of the Church is a pressing concern — whether we’re treasurers, trustees, or simply members invested in its mission.

Money plays a crucial role in how we serve our communities. It allows us to host more events, expand our staff, and maintain our places of worship. That’s why understanding and encouraging generosity within our congregations is vital.

Stewardship’s 2025 Generosity Report brings some encouraging news:

• Giving has increased — the average monthly donation is now £124, up by £47 from last year.
• Committed Christians — those who regularly read the Bible and attend church — give nearly five times the UK monthly giving average.
• Committed Christians experience more joy — those who give regularly report the greatest satisfaction in their generosity.
• Over 60% of committed Christians donate regularly to Christian causes.
• More than 90% of regular churchgoers give consistently to their local church.
• Young adults (18-24) are leading the way, giving the highest proportion of their income — 11%.

I encourage you to read the full report or, at the very least, the key findings on Stewardship’s website. Reflect on what these insights mean for your own church’s approach to giving.

The bottom line is that if we do The Great Commission, God’s Kingdom grows in numerical numbers and national resources.

So, how can we invite more people to know Christ? And how can we deepen the faith of those already in our churches? The answers may shape the future of generosity in the Church.

What principles and priorities underpin our charitable giving?

The closing down of the USA’s aid development arm, combined with the UK government’s reduction in the aid budget from 0.5% to 0.3% of our gross national product (the total market value of goods and services produced by a country’s residents, including income from abroad) raises key questions about national financial priorities.

This apparent change in national priorities also raises questions about how, as treasurers and members of our church governing bodies, we prioritise our financial support for those in need.

• In preparing annual budgets, particularly against a background of falling income and ever-increasing expenditure, where does charitable giving and support feature?
• Do we reduce contributions to overseas mission partners?
• Postpone decisions on support for a local drop-in centre for the homeless?
• Would we be forced to cease financial contributions to a local hospice?
• Do we prioritise our giving to those Christian Charities in sympathy with our theological outlook?
• To what extent do we sensitively challenge our membership concerning their own personal giving priorities?

Questions for quiet reflection perhaps, during this Lenten season.

Changing the traditional model of Church

In what ways has your church grown over the past five, ten or twenty years? Perhaps you’ve seen a decline in membership.

Over the past forty years, working lives and leisure time have changed radically. In the 1980s, the generally accepted norm was that work took place Monday through Friday, possibly extended to Saturday morning, but Sunday was a day of rest and relaxation.

Legalising Sunday Trading in 1994 fundamentally altered this pattern. Companies now require staff to work at weekends, which was compensated for by time off during the week. This, combined with an increasing secularisation of society, has resulted in a gradual decline in Sunday church attendance.

All this begs the very contentious question, “Are there other models of churchgoing better suited to 21st-century lifestyles?”

A Baptist Church, Sabbatical Project originating in West Somerset considered the changing face of church attendance across the country. Some of the conclusions were as follows:

• Our culture no longer connects with traditional church-going
• Sunday services are not the highest priority
• Smaller fellowship groups are meeting mid-week with no expectation to attend Sunday services
• The traditional “one size fits all” is no longer “fit for purpose.”
• This transition from the traditional model of Sunday worship is based on a sense that “God is making all things new.” (Rev. 21:5).

Are we open to radical change in our understanding of “Church”?

How effective is your church’s governing body?

The Chartered Governance Institute, in collaboration with Exeter University Business School and Henley Business School, has launched a consultation to review the effectiveness of corporate sector boards of directors.

This consultation focuses on six key areas:

• Appointment of board members
• Induction of new board members
• Training and continuing development
• Evaluation of decision-making and board actions
• Succession planning
• Board composition, skills, experience and reappointment

These are all very relevant when considering the effectiveness of church governing bodies. Seventeen years ago, the Charity Commission, in a document titled “The Hallmarks of an Effective Charity,” shared some key attributes of an effective trustee board.

• Clarity of purpose and direction
• Correct balance of skills and experience
• Policies and procedures fit for purpose
• Continued learning and improving
• Financially sound and prudent
• Accountable and transparent

How would you evaluate the effectiveness of your church governing body in each of the two groups listed above?

Give as you Live – a member’s perspective

One of our members, Christopher, has had a worthwhile experience using a company called Give as you Live and wants to share how it has helped his church raise extra funds effortlessly. Could this be a great opportunity for your church too?

Will your congregation believe you when you tell them they can shop in person or make purchases online and at the same time it will not cost them a penny to get a donation for your church?

Both in person and online are possible and one way is via ‘Give as you Live’. The firm you are buying from makes a donation from its own funds. Our church is registered with them and worthwhile sums have been raised at no cost to the church or its members. Your donors can remain anonymous.

As well as online shopping Give as you Live Instore gives an additional income stream when your supporters regularly visit and shop in person at top UK supermarkets and high street stores. The top-up feature ensures donations are generated with each purchase via reloadable store cards. There are one-off cards as well, which you can use or be sent as a gift to others, at firms listed at Give as you Live Instore. The categories are: Stores, Entertainment, Fashion, Food and Drink, Health and Beauty, Home and Garden, Restaurants, Sports and Outdoors, Supermarkets and Travel: see https://instore.giveasyoulive.com/shop

It is not only for everyday shopping but also with occasional purchases. For example you earn up to 1.25% with National Trust Holidays and up to 1% with B&Q. The range of available products is very large and the app on your browser shows ‘Raise a donation?’ when you visit a relevant website.

Give as you Live also provides one-click marketing materials, ready-made social media posts, printable posters and more. Details may be found at https://admin.giveasyoulive.com/how-it-helps.

Handling cash and cheques at financial year-end

Correction: In our December newsletter, we posted the undernoted question. The published response came from our handbook; but this has now been updated in line with guidance from the Charity Commission. Thank you to a reader who spotted the inconsistency. We want to ensure our published materials are up to date. Here is the link to the update

https://www.acat.uk.com/handbook/receipts-and-payments-basis-for-accounts/ [login required] chapter 5 section 4 paragraphs a and b

Q: Can you please remind me what to do about cash and cheques received on Sunday 30 March that won’t reach our bank account until after our financial year ends on the following day. What about cheques that I have posted out in March that won’t be processed until April? We use Receipts and Payments [R&P] accounts.

A: For churches preparing accounts on a Receipts and Payments basis, all cash received in the current financial year should be included in the 2024/2025 receipts and cash/bank balances. It is suggested that cash should be entered up as petty cash – the writer has a cash account in his accounting software called ‘Cash Offerings’. When banked, a transfer is made to the current account.

The transaction date for cheques received by the church will be the date the cheque clears the bank. This date should be used for both your account books and Gift Aid (as per HMRC Gift Aid rules). The value of the cheque(s) should be included as assets within the Statement of Assets and Liabilities [SoAL].

If a cheque is issued by the church before the financial year-end but is not paid in by the payee or does not appear on the bank statement until early in the new financial year, it should nonetheless be included as a 2024/2025 payment – some manual adjustment may be required.

If you use credit cards, debit cards or charge cards, transactions should be recorded at the time of purchase and treated as 2024/2025 payments.

Rounding figures in the annual reports

Several folk got in touch following last month’s FAQ on this topic – thank you.

The situation is summarised in a document on our website.

Corporation Tax

Q: I am the church treasurer. On 3rd February we received a letter from HMRC (dated 16 January) noting an overdue penalty of £200 for unpaid Corporation Tax for the period ending 31/08/2021. This was the first indication that we had any tax due for this year and I made a number of attempts to telephone HMRC in order to ascertain as to why, as a charity, we had to pay Corporation Tax. My calls were unanswered and so I wrote to HMRC via a postcode on the letter and eventually received a reply. Basically, the answer was that HMRC can check any charity to see if tax is due and (as we had not responded) a penalty was due.
(As my colleagues on other church bodies had never heard of this and given the date when tax was due, I felt that this might be a scam. I am now 99% certain that it is not but still feel worried about it). The (3 page) reply that I received from HMRC dated 19 February advised me that charities can be asked to file a return even if they have no tax liability. The letter explained how I was to do this. I completed the first part of the form as requested and was advised that I would receive a reply (in the post) within 7 working days. To date I have not received a reply and am feeling concerned about this. Should I contact HMRC to find out what is happening?

A: I am sorry to learn of your problem; it makes difficult reading knowing that you never received the form in the first place, yet you are being penalised for it. Whilst we need to be aware of scams, it is equally important not to ignore any correspondence from HMRC. We receive the occasional request from churches who receive a Corporation Tax form from HMRC and wonder why it drops through their letter box. Your situation is a salutary warning so if you do receive a Corporation Tax form, please don’t ignore it or throw it in the bin! A NIL return is required otherwise HMRC will follow this up and your church may receive a penalty notice.

Corporation Tax is only paid by entities that trade. If your church/charity is trading, then there are rules and guidance to follow. It’s a complex subject and this webpage is one place to star thttps://www.gov.uk/guidance/charities-and-trading. If your church/charity receives a Corporation Tax form and you are not involved in trading or it is very limited, please return the form to HMRC stating that you have a NIL return. HMRC sometimes require charities to complete these to provide ongoing confirmation that they do not owe any tax. As mentioned, it is important that you respond otherwise HMRC will follow this up.

We can’t speak for HMRC about the delay in dealing with this particular matter but the writer’s experience is that HMRC never acknowledge a NIL return. If you are trading, we suggest that you obtain the advice of a tax accountant in dealing with this.

Employment allowance

Q: I am a Treasurer of a church which is an Excepted Charity. We have a full time Pastor and use the PAYE BASIC TOOLS. Can we claim EMPLOYMENT ALLOWANCE for 2024/25? It has never been claimed previously (if available presumably we can claim for the previous 4 tax years).

A: As the advert says, “every little helps” so we should avail ourselves of any Government support that’s going. It makes no difference that you are an Excepted Charity – the Employment Allowance can be claimed by any business or charity provided your employers’ Class 1 National Insurance liabilities were less than £100k in the previous tax year.

Employment Allowance has been available since April 2014 and you can go back four tax years for your reclaims – excluding the current year – as per this extract from gov.uk: https://www.gov.uk/claim-employment-allowance/when-to-claim

If you get in quick, you may be able to benefit from 2024/2025 as well as the previous four tax years. With the increases in Employers National Insurance Contributions, it’s a ‘must’ to claim for Employment Allowance especially as it is being increased from £5k to £10.5k from 6 April 2025.

I don’t know your employer’s National Insurance Contributions but I imagine that the refunds will be very helpful to your income this year. It shouldn’t take you long to activate these refunds.

CAF Bank

Financing the future: A guide for church treasurers & trustees

Churches are facing increasing financial pressure—rising costs and the challenge of maintaining old buildings. Financing the Future is a practical guide produced by CAF Bank which could help church leaders use repayable finance to sustain and grow their mission.

Grants and donations are vital, but borrowing can allow churches to repair buildings, expand community outreach or invest in income-generating projects without having to wait years to fundraise. This guide gives clear advice on how charities can responsibly access and manage loans to secure their financial future.

What’s inside?

• Repayable Finance 101
• When to Borrow
• How to Apply

With real-life case studies this guide will give treasurers and trustees the confidence to explore finance options that fit their values.

Download a copy of the guide below.

How to harness high value giving

The Charities Aid Foundation recently published a report on high-net-worth individuals and the extent of their philanthropic giving. It is estimated that in 2023, 536,000 U.K. millionaires donated between £7.96 billion and £19.9 billion to good causes.

Whilst the report concentrates on how to increase the philanthropy of the wealthy even further, from a national perspective, several important pointers could be of value when considering church giving campaigns.

• Don’t be afraid to talk about giving.
• Encourage potential donors to examine whether there are ‘non-cash assets’ that could be donated, such as buildings, equipment, professional services, and advice.
• Identify medium/long-term support needs which potential donors could consider, e.g. matched funding for a youth worker, sponsorship for specialist staff pastoral training

To what extent does your church have a ‘giving strategy’ which actively encourages those who are able to be generous?

Kingdom Bank

Guiding churches through property projects

Jon Broome, Property Services Lead at Kingdom Bank, shares the importance for churches to think through property decisions very carefully and ask for help from experts to serve the gospel mission and ensure donor money is not wasted.

Church leaders often face challenges such as lack of experience with property projects, complex governance structures and balancing ministry vision with reality. Kingdom Bank addresses these issues by providing expert guidance through every stage of the property journey, from negotiating leases and purchase agreements to long term sustainability and charity law compliance.

In their article, which can be read on the Kingdom Bank website, Jon answers the following questions:

• Why does Kingdom Bank offer property services for churches and charities?
• What are some of the biggest challenges church and charity leaders face when taking on property projects?
• What are the most common pain points for churches and charities in property projects?
• Given those challenges, how does Kingdom Bank seek to help?
• Can you share more about your experience and credentials in this field?
• What is the difference between serving churches as opposed to your previous commercial clients?
• What are some trends you see in church property projects over the next decade?
• What is the ultimate goal for Kingdom Bank’s Property Services?

Read the whole article below.

ACIE

ACIE annual England & Wales conference 2025

Early bird bookings for the England and Wales Conference on 15 May (London) will close on 31st March.

The provisional programme is posted on the ACIE website.

• Members: £130 rising to £165 on 1 April.
• VIE Members: £72 rising to £90 on 1 April.
• Non-Members: rising £165 to £190 on 1 April.

See below to find out more.

Ecclesiastical

Updated List of grant funders for churches

Ecclesiastical has updated a list of the top church grant funders. The list incorporates a search facility which divides the grant funders into three main categories:

• Those supporting faith and religious activities
• Those supporting community action
• Local community foundations

Planning Easter events

This is a gentle reminder that when planning Easter events, take care to consider the associated risks, including all aspects of health and safety. The short video produced by Ecclesiastical is well worth looking at.

JustMoney Movement

Let’s make banking fairer

A Channel 4 TV program on 14 March highlighted the unaffordable credit and debt problems many face. Mainstream banks frequently refuse loans or overdrafts for basic living items to customers they regard as high-risk.

The result is that such customers turn to payday lenders and loan sharks with unsustainably high repayment interest.

Just Money Movement is part of a coalition calling for a Fair Banking Act to deal with the problem.

Within our churches, there are folk who struggle financially and would greatly benefit from a more humane lending approach by our major banks. Fairer banking must surely be consistent with the outworking of our faith and, therefore, something we should support.

easyfundraising

82,000 reasons not to miss out!

We were delighted to hear that our partner, easyfundraising, had paid out more than £80,000 to religious groups and churches during their last Donation Day in February! Every 3 months all the funds that have been raised that quarter are paid out, thanks to members of the community collecting cashback donations for their church when they shop online. Did your church get a share? A huge well done if you did! If not, make sure your church is signed up ahead of their next Donation Day in May. Over 8,000 big name retailers will donate to your church when your congregation shops with them!

Find out how to get involved here: www.easyfundraising.org.uk/acat

• Introduction to being a Church Trustee: Some things to think about
  • Date: Tuesday 1 April
  • Time: 7 PM – 8 PM
• Gift Aid: Maximising the Benefits and Reducing the Pitfalls (rescheduled)
  • Date: Thursday 3 April
  • Time: 6 PM – 9 PM

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.

April, May and June courses are now open for bookings.

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.