March, the month that, according to the old weather proverb, ‘comes in like a lion and goes out like a lamb,’ is almost at an end.

It is a time of change and renewal, with the natural world waking from the dark days of winter.

Growth is evident: the colours of Spring, sunshine and, with it, hopefully, some optimism for the future, despite all that is happening in the wider world.

It is certainly our prayerful hope that there are signs of spiritual growth and renewal in the various churches with which our members are involved.

The items in this month’s newsletter might also serve to provide thoughtful inspiration for what lies ahead.

Table of Contents:

• What’s new
  • Plan to Make Work Pay and the Employment Rights Act
  • How to report a serious incident to the Charity Commission
  • Church choirs receive £400,000 boost for programme to increase participation by children.
  • Listed Places of Worship Grant Scheme runs out of money.
  • Helping trustees navigate their fundraising responsibilities – Charity Commission guidance.
  • Enhanced Charity Commission powers on hate speech and extremism
  • ACAT Conference 2026 announced
  • Enjoying this month’s highlights?
• Points to Ponder
  • Your church and the local pub
  • Supporting Church Members’ Concerns during Global Conflicts
  • Green Shoots of Growth – 2026
  • Debt-advice service at Jarrow church helps people to manage £1 million in debt since Covid
• Helpline Q&A
  • Easter and end of 2025/2026 tax year
  • Long-established funds – what is their purpose
  • Sign-off of Annual Accounts
• Partners in Ministry
  • Charities Aid Foundation 2026 Report – Understanding the shifts in UK giving
  • easyfundraising grant
• Spring Training Programme
• Charities Engagement Team – Upcoming webinars
• Final Thought

God bless,

Ashley Ellis
ACAT Executive Officer

P.S. To make sure you don’t miss important updates, please add @acat.uk.com to your safe senders list. Some members have found our emails ending up in spam folders. We’ve put together a simple guide for Outlook, Gmail and other email providers at: https://www.acat.uk.com/make-sure-you-get-acat-emails/

Plan to Make Work Pay and the Employment Rights Act 

#Charity Governance & Regulation, #News, #Encouraged Action

The reforms within the Plan to Make Work Pay, introduced through the Employment Rights Act 2025, will be delivered in phases so that employers have time to prepare for the changes.

Whilst many of these relate to the repeal of the Trade Union Act 2016, churches that employ staff should also be aware of important employee rights.

With effect from 6 April 2026:

• The penalty awarded by an employment tribunal (Collective Redundancy Protective Award) against an employer for not complying with the collective redundancy consultation requirements increases the maximum period of the protective award from 90 to 180 days.
• Paternity Leave and Unpaid Parental Leave from day 1 of employment
• Whistleblowing – strengthening protections for workers who ‘blow the whistle’ on sexual harassment
• Bereaved Partners’ Paternity Leave – (non-MWP measure) will enable bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life 
• Statutory Sick Pay (SSP) – removing the Lower Earnings Limit (LEL) and waiting period
• Action plans on gender equality and supporting employees through the menopause are encouraged for employers with 250+ employees
• Simplified trade union recognition process introduced

The employment of staff and volunteers is an area where churches can sometimes fail to observe and act in accordance with the law and good practice. General employment rights will apply to all establishments with one or more employees.

It is respectfully suggested that church trustees carefully consider these new legislative changes and the impact they may have on employment policies and procedures. 

When was the last time these were reviewed?

How to report a serious incident to the Charity Commission

#Charity Governance & Regulation, #News, #Information Only

The Charity Commission has recently updated its guidance for charities on how to identify and report serious incidents. For most, if not all, charities, and certainly I suspect this includes churches, it may seem to be too remote a possibility. However, it is worth considering the Commission’s definition of what constitutes a serious incident.

A serious incident is an adverse event, whether actual or alleged, which results in or risks significant harm:

• To the charity’s beneficiaries, staff or volunteers 
• To others who encounter the charity through its work 
• Results in the loss of the charity’s money or assets
• Causes damage to the charity’s property
• To the charity’s work or reputation

Responsibility for reporting a serious incident:

The charity’s trustees are responsible for reporting a serious incident. Practically speaking, this may be the result of either a report from an employee or following the external audit or independent examination of the Trustees’ Annual Report and Accounts.

In such circumstances, all trustees bear ultimate responsibility for ensuring their charity makes a report and does so in a timely manner.

Deliberately failing to make a report about something serious which subsequently results in the Commission becoming involved, can have consequences for both trustees and the charity. 

The importance of reporting a serious incident to the Charity Commission

Reporting a serious incident promptly to the Commission in its capacity as charity regulator protects the trustees and the charity in addition to enabling independent advice to be sought to ensure compliance is restored, assets protected, and reputation repaired.

The Fellowship of Independent Evangelical Churches (FIEC) has very helpful guidance for churches and associated charities on the subject, including a report template, which can be accessed using the link below.

Church choirs receive £400,000 boost for programme to increase participation by children.

#Church Life & Community, #News, #Encouraged Action

The Church of England’s Strategic Mission and Ministry Investment Board, together with the Royal School of Church Music (RSCM), has announced investment of £400,000 in ‘The Choir Project’.

The aim of this project is to support upwards of 200 churches across England to establish or renew choirs for children and young people, helping them rediscover music as a pathway to mission and discipleship, as part of the Church of England’s ‘Partnerships Funding’ stream.

Whilst the number of cathedral choirs in England reached a record high of 207 in 2024, 57% of local church choirs currently have few, if any, children.

It is hoped that the new programme will tap into the country’s rich tradition of choral worship, with a view to sparking a revival of local parish choir membership among the younger generation and engaging them actively with Christianity.

Whilst this initiative is aimed exclusively at Anglican churches, it raises an important question: To what extent do we in our churches and through their various denominations provide support for music groups?

Music is a fundamental part of worship, whatever form that takes. It is also an effective tool of outreach. 

So, how is your church encouraging the development of music, particularly in young people, and how large is the annual budget provision for supporting this valuable ministry in your church?

Listed Places of Worship Grant Scheme runs out of money. 

#Finance & Fundraising, #News, #Information Only

The Listed Places of Worship Grant Scheme, with a budget of £23 million, was due to be closed on 31 March 2026, but has run out of money six weeks early than expected. This sum was reduced from £42 million for the current financial year.

The replacement Places of Worship Renewal Fund has yet to be established, leaving historic churches that require financial support for urgent repairs in financial limbo.

Furthermore, when the new fund is established, it is not expected to replace the arrangement under the Listed Places of Worship Grant Scheme that allowed churches to reclaim the VAT paid on repairs. As a result, churches may have to meet the full VAT cost of urgent repair work themselves.

With a significant percentage of the estimated 21,000 historic churches at risk, there is grave concern among church leaders.

This will undoubtedly place added financial pressures on church treasurers and trustees.

We will keep you up-to-date with further information about the new fund. The National Churches Trust has produced a helpful ‘Fact Check’ on the new guide linked below.

Helping trustees navigate their fundraising responsibilities – Charity Commission guidance.

 #Charity Governance & Regulation, #News, #Encouraged Action.

The Charity Commission has updated its guidance to trustees in respect of their responsibilities on fundraising (CC20) with particular reference to emergency appeals (CC40).

This updated guidance has been published as a response to the continuing financial challenges both nationally and globally.

The Commission’s underlying emphasis is on:

• Effective fundraising planning
• Supervision of the process
• Appropriate fundraising material
• Ensuring that the charitable purposes allow for emergency appeals
• Complete transparency throughout
• Compliance with the law and Codes of Fundraising Practice

Enhanced Charity Commission powers on hate speech and extremism 

#Social Justice & Policy, #News, #Information Only

The Government has announced plans to strengthen the Charity Commission’s powers to close charities that promote extremism and protect the vast majority of the voluntary sector delivering positive work. 

Culture Secretary Lisa Nandy has asked officials to work with the regulator to speed up the process for investigating charities suspected of involvement in extremist behaviour. 

This will include strengthening the Commission’s powers to close such charities down if necessary, processing decisions more quickly and reviewing the appeals process.

Additional measures being considered include mandatory trustee ID verification, the digitisation of charity accounts, and a strengthening of local authority powers to issue fines and take other enforcement action to tackle unlicensed street fundraising.

Whilst most of the proposed legislation should not impact the work of churches, trustees should take note of the details when announced.

Of particular relevance could be:

• Mandatory trustee I.D. verification
• Digitisation of charity accounts
• Ensuring that licences are obtained for any street fundraising

ACAT Conference 2026 announced

We’re pleased to confirm that this year’s ACAT Conference and AGM will take place on Saturday 17 October 2026 at St Michael’s Centre, The Green, Stoke Gifford, Bristol, BS34 8PD.

The conference offers a chance for church treasurers and trustees to meet together in a day of discussion, encouragement and knowledge. The roles of finance and governance in a church are of utmost importance and carry with them a real responsibility, and I’m sure for some, it can feel like a very lonely role. We run the conference to be a place where people who understand these challenges can come together, sharing their experience and offering practical advice to one another.

It doesn’t matter if you’re serving for the first time or have been going for what seems like forever; the conference will be a place of fellowship and guidance, bringing together members from all across the UK and all across Christian denominations and organisations.

Tickets this year are £25 and, as ever, we encourage you to invite others from your church and those around you to come along together. I have no doubt that anyone engaged in finance, administration or governance within the church will benefit.

If travelling isn’t an option for you, we also have a live stream option. Those attending online can only follow the main sessions, and only those attending in person can vote at the 2026 ACAT AGM.

Your church and the local pub

#Church Life & Community, #News, #Information Only

An interesting piece on the BBC South East website reported that an East Sussex village church is holding its services in the local village pub whilst urgent maintenance work is carried out.

More than 50 people attended, including the church choir and organist. 

The notion of a local church holding services in a place whose business is, among other things, to serve alcohol may seem anathema to some Christians. 

Nevertheless, this is a good example of the church linking with the local community in a very practical way and in so doing, witnessing to the gospel of Christ.

Some time ago, a church in County Durham regularly held its Parochial Church Council meetings in a small room at the local pub. PCC members then relaxed afterwards with the regulars in the bar.

Different church groups all over the country meet in their local pub.

All of these are examples of the church, in a small way, connecting with the local community.

Supporting Church Members’ Concerns during Global Conflicts

#Church Life & Community, #Opinion, #Encouraged Action.

The continuing war in Ukraine, the Israel–Gaza crisis, and the growing tensions involving Iran are affecting us all in various ways. 

For churches and their members, the economic consequences increase, as do the underlying, deeper faith-related concerns.

How should we respond?

The consensus among Christian denominations suggests focusing on the following:

• Pray consistently and regularly for peace and justice. Not necessarily the easiest thing to do in the circumstances.
• Provide practical support to churches and charities attempting to alleviate the suffering in the various conflict zones.
• Provide hospitality to members of the armed forces and veterans living in our communities.
• Engage with all church members, but particularly those with children and young people, reflecting theologically on what war demonstrates about human beings.
• Support refugee initiatives in your local communities.

These suggestions have a very practical aim in view, one which, as church treasurers and trustees, we should also focus on. 

When church members are drawn closer through shared concerns, churches tend to become stronger and more attractive to those in the community who are outside the fellowship, seeking answers.

The way we respond to current global conflicts can be a real witness to the difference that personal faith in the risen Jesus makes.

Most denominations are able to provide practical resources for churches wishing to address the issues of faith and conflict.

Green Shoots of Growth – 2026

#Church Life & Community, #Opinion, #Encouraged Action

2025 witnessed discernible growth in the worldwide Church. On several occasions, we reported on:

• What was described by commentators as ‘the Quiet Revival’.
• The growth of the Anglican church, particularly in Africa.

Now that we are well into 2026, the question is whether we are seeing that growth continuing in our local churches?

At this point, it is worth remembering that although our respective church leadership roles may essentially be financial, administrative or governance-based, we should nevertheless have a deep concern to see growth both numerically and spiritually.

So, what are the ‘green shoots of growth’ we should be looking out for and encouraging?

People in our community are being spiritually open

The received wisdom is that even in our secular society, the pronounced atheism of twenty years ago has waned because it offers no solution to the global and personal issues we all grapple with.

But the rising tide will cause seekers to turn not only to all forms of Christianity, but to other religions, paganism and the occult.

With this in mind, it is important that we are aware of these competing spiritual offerings and can discuss them when and where necessary.

New unexplained spiritual experiences

Those new to the Christian faith, as well as those who have been ‘on the road for a while,’ can sometimes have unexplained spiritual experiences. The revivals of the twentieth century were certainly accompanied by spiritual experiences which, at one level, were unexplained. However, from a biblical perspective, this was clearly the work of the Holy Spirit.

In circumstances where folk in our churches have spiritual experiences which are hard to explain, it is important that we maintain an open mind.

This, again, is an aspect of church life in which those in leadership roles with more pragmatic responsibilities have a part to play in discerning what is genuine.

Opportunities for demonstrating faith in action

It is a fact that the economic challenges of life are not receding. The mental stresses which can come with personal and social conflicts simply add to people’s daily difficulties, which can appear overwhelming.

In these circumstances, opportunities open up for our churches to witness to the difference that faith can make. These opportunities to demonstrate faith in action come in various forms.

• Continued support for community/church-based food banks
• Drop-in cafés and lunch clubs for those needing friendship
• Church events separate from the normal patterns of Sunday worship

Bible Engagement

The Guardian newspaper reported in January that Bible sales in 2025 had increased by 134% since 2019. It is the younger generations who appear to be fuelling this increase as they look for spiritual truth and meaning for their lives. This places a great responsibility on churches not only to expound biblical truth but also to be open to the inevitable questions which new church members will have.

A question for church treasurers: how much is in the budget for new Bibles?

Challenging Questions

Those new to the Christian faith or on a journey towards it will have questions, some of which will be a challenge as they seek to relate faith to the world as they see it.

Faced with such questions, it is crucial that respect for the questioner is paramount and dogmatic responses are avoided. 

What evidence of spiritual green shoots are you seeing in your church?

Debt-advice service at Jarrow church helps people to manage £1 million in debt since Covid

#Church Life & Community, #News, #Encouraged Action

A debt advice service set up in the parish of Jarrow and Simonside, Tyneside, following the COVID-19 pandemic is estimated to have helped people manage approximately £1 million in debt. 

The service, Money Advice South Tyneside, now a registered charity, is supported by the Durham Diocese of the Church of England and Communities Together Durham. The latter is a partnership of churches, charities and local authorities all working in one of the most deprived areas in England.

The essential elements combining to make this initiative a success appear to have been:

• Establishing a service that is free and confidential
• Providing drop-in centres for people to meet and seek advice
• Recognising that food banks alone can’t solve financial debt problems
• Churches, related charities and local authorities all combining and working together
• Recognising the impact that debt has on mental health
• Providing first aid training in mental health
• Recognising the impact a loss of relatively small amounts of income can have on personal finance
• Surrounding all aspects of the work with prayer

At a time when financial hardship for many is set to continue and even increase, this initiative demonstrates that collaboration involving a variety of community agencies can make a real impact.

The question arises, how are our respective churches responding to the personal financial crises of some of our church members, and are we even aware of them?

Easter and end of 2025/2026 tax year

Q: With Easter falling on 5th April, what do I do about cash received in our Easter Sunday offerings? In which tax year should I reclaim GASDS?

A: There are two non-banking days over the Easter weekend, so standing orders and other bank transactions will be impacted. Let’s look at the impact as far as Gift Aid and GASDS [Gift Aid Small Donations Scheme] is concerned.

The primary concern is GASDS, as this is reclaimed by tax year. However, Gift Aid is important if you are preparing annual Thank You letters to your givers to thank them for their gifts in the recent tax year.

Cash – any gifts received on 5 April, Easter Sunday, should be recorded as ‘cash received’ in a cash account within your account books. GASDS (if applicable) will be reclaimed in the 2025/2026 tax year, assuming that you haven’t reached the £8,000/£2,000 limit. An internal entry with a later date can be made to transfer the cash to a (church) bank account (without deduction for any petty cash expenses).

Contactless, chip-and-pin, credit card (e.g. via a website) – gifts should be recorded on the date the gift is processed by the payment processor, not the date that the money reaches your current account. It is the same in reverse when you or I make a payment via our credit cards – we are liable even though the money may take several weeks to leave our current account.

Cheques – HMRC rules state “3.4.3 Donations by cheque are only valid pending clearance of the cheque. If the cheque is not honoured a donation has not been made.” Therefore, the earliest date insofar as Gift Aid is concerned is the date that the cheque is processed by the bank (as seen on the bank account/statement). It is not the date on which the church receives the cheque or pays it in. Cheques should not be recorded in any cash account. To create a paper-trail should HMRC want to inspect your Gift Aid records, it is recommended that cheques are paid-in separately from cash and a scan or photocopy is retained of the cheque.

Standing orders or bank transfers – any gifts scheduled to arrive on the 3rd, 4th, 5th or 6th of April will drop into your bank account on Tuesday, 7th April. The effect of this is that there may only be 11 monthly gifts from some givers in tax year 2025/2026 whereas there could be 13 in tax year 2026/2027. If you are preparing annual Thank You letters on a tax year basis, then you need to be aware of this and perhaps mention this to your givers. Many years ago, when the writer was appointed church treasurer, his predecessor asked folk to choose a date between 6th and 25th of the month for their standing order forms to avoid problems with tax years and month-end (in 2026 – and 2027 – not only is February a shorter month but the last day(s) are at the weekend! It makes consistency difficult when reporting trends on a monthly basis).

Long-established funds – what is their purpose

Q1: From an Anglican Diocese. One of our PCC Treasurers has approached the finance team for advice about the PCC’s ‘restricted’ funds. He is relatively new to the role. The previous treasurer seems to have left on slightly difficult terms – we don’t have all the details, but he has effectively gone ‘no contact’, and there was very little handover with a possibility that he still holds some paperwork. The PCC has a number of investments (with CCLA) that have historically been shown in the accounts as restricted, they have helpful names like “St X Investment Fund” or “St Y Repair Fund” but it is not clear how they arose and exactly what the nature of the restrictions might be – it is entirely possible that they are actually designated rather than genuinely restricted. In a case such as this, we’re not sure how to advise the treasurer/PCC – we think that it would be worth contacting the last but one treasurer to see if they can help at all, but we don’t know what else to suggest. Where the details of a restriction have been lost/are unclear, what can a parish do to access and spend those reserves? The values involved (across multiple accounts) total a fairly substantial five-figure sum.

A: We know it’s ‘shutting the stable door after the horse has bolted’, but we strongly recommend that churches describe the purpose of each Restricted Fund in their Annual Report and Accounts, not just for the current generation but also for those who follow. Once you have ascertained the purpose of each fund, it must be shared with the PCC and available in the ‘public domain’ via your annual reporting.

The first thing we recommend is that you have a working definition of the different accounting funds. Our Handbook has several definitions that describe the same thing in different ways – https://www.acat.uk.com/resource/accounting-funds-acat-handbook-and-booklet/ [login required]. You mention that the funds may be Designated as opposed to Restricted – that’s possible – in our view, the problem is that someone may have given a specific gift to a Designated Fund. It’s hard to say with certainty as the years pass. Until the 1980s/1990s, keeping separate funds wasn’t as important as it is now.

Our advice in these circumstances is to start with documenting what the church knows. Gaps will have to be filled by asking around – folk who have been in the church a long time, previous treasurer(s), paper records – at the church or the Diocese?

If you are still unsure or you want to change the purpose of the fund, you need to look at the Charity Commission guidance:

https://www.gov.uk/government/publications/charity-fundraising-appeals-for-specific-purposes. Parish Resources have a helpful guide called Managing Restricted Funds – https://www.parishresources.org.uk/wp-content/uploads/restrictedfunds.pdf – section C2 has some guidance about what to do in the situation you have described.

Sign-off of Annual Accounts

Q: Could you please let me know if the Chair of the PCC can sign off the Annual Financial Report at a PCC meeting before the Independent Examiner has signed his section of the report? The examiner has agreed that he is happy with the report and only wishes the PCC to confirm in the minutes of a PCC meeting that the PCC is financially secure. If possible, we wish to avoid having to hold an additional meeting for the ‘sign-off’ of the report.

A: It is the legal responsibility of the trustees to produce accounts in accordance with the relevant rules. The accounts are technically “draft” until they have been formally approved by the trustees (PCC). Whilst they are still in draft, they can be modified. The Independent Examiner [IE] will not wish to report on accounts that might change after the report has been issued! So trustee approval has to come first. Obviously, it makes sense to get informal clearance from the IE before the accounts are approved and finalised.

Charities Aid Foundation 2026 Report – Understanding the shifts in UK giving

#Finance & Fundraising, #News, #Information Only

The Charities Aid Foundation has published its detailed report on how people donate to charities and the trends affecting people’s generosity. The purpose of the report is to better understand how and why people donate to charities in order to help strengthen financial resilience.

The CAF 2026 report is based on research data from 2025, and the following are the summary findings:

• £14 billion was donated to charities in 2025
• 1 in 5 people stated that they could not afford to donate to charities
• Direct Debits and Standing Orders remain the most popular means of contributing
• 600,000 donors have been lost to the charity sector in the past ten years

The main findings of this report raise a series of questions for all treasurers and those involved in church fundraising:

• How resilient is our core member income?
• In real terms, are we losing donors year-on-year? If so, do we know why?
• Do we have a story of encouragement and community witness which may inspire giving?
• Is the church membership kept up to date with our financial situation?
• Is planned giving regarded as part of discipleship and a subject preached on?
• How do we approach the delicate subject of legacy giving, or do we avoid it?

easyfundraising grant

The easyfundraising Impact Fund is now open with 20 unrestricted grants of £500 for UK not-for-profit organisations, including churches to help them continue or enhance their work. These grants are unrestricted, so your church can use the funds wherever it’s needed most, e.g., core costs, equipment, resources, activities, or just running costs. The application form is straightforward and quick to complete and the fund is open to churches of all sizes and structures.

Fund open: 23 February – 5 April
Apply here: https://www.easyfundraising.org.uk/impact-fund/

About easyfundraising: easyfundraising helps your church raise unrestricted funding from everyday online shopping. When people choose you on easyfundraising and shop with 8,000+ retailers, the retailer donates to your church at no extra cost — and you receive the total raised every three months. Find out more: https://www.easyfundraising.org.uk/acat

• Banking for Faith Groups – Key considerations
  • Date: Tuesday 24 March
  • Time: 12:30 PM – 1:30 PM

• Generating Income and Grant Applications (In-person)
  • Date: Saturday 6 June
  • Time: 10 AM – 4 PM
  • Location: Cambridge

• Charities SORP 2026: an Introduction
  • Date: Monday 15 June
  • Time: 7 – 8 PM

• ACAT Conference 2026
  • Date: Saturday 17 October
  • Time: 9.30 AM
  • Location: Bristol

• ACAT Conference 2026 – Livestream
  • Date: Saturday 17 October
  • Time: 9.30 AM

If you have any questions about our training, please contact Cath Fox.

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.

Courses for April are open for bookings.

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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.