We’re now entering the Easter season — the 50 joyful days that lead us from the empty tomb to the fiery arrival of the Holy Spirit at Pentecost. The wonder of the resurrection, and the hope it brought to those first disciples, continues to echo in our lives more than 2,000 years later.

Whilst the latest edition of our monthly newsletter may not carry quite the same power, we hope there is something within these pages that ignites a spark of inspiration in you today.

1. What’s new
   • Chancellor’s Spring Financial Statement
   • Charity Commission warns about fraudulent letters sent on its behalf
   • The House of Commons debates safeguarding
   • Updated SORP: have your say
   • Gift Aid reclaims following the death of a donor (Clarification)
   • Consultation on financial thresholds in charity law
   • How resilient is your Charity/Church?
2. Points to Ponder
   • Religious Education should be a core part of the National Curriculum
   • Persecuted Christians – How much do we really care?
   • What if the story that “church is dying” isn’t just old news – it’s just plain wrong?
   • Church of England awards grants of over £40 million for mission and ministry
3. Also of Interest
   • Financial lessons from Easter
4. Helpline Q&A
   • Employment Allowance
   • Gift Aid and GASDS – rate of reclaim
   • Gift Aid thank you letters
5. Partners in Ministry
   • CAF Bank
   • National Churches Trust
   • easyfundraising
6. Spring Training Programme
7. Charities Engagement Team – Upcoming webinars
8. Final Thought

God bless,

Ashley Ellis
ACAT Executive Officer

Chancellor’s Spring Financial Statement

Against a backdrop of slowed economic growth, projected to halve this year before rising to 1.9% by 2026, the Chancellor of the Exchequer’s Spring Statement contained the following main elements.

Welfare

• Health related Universal Credit for new claimants is to be frozen in cash terms until 2030
• The standard allowance for Universal Credit will now only rise to £14 per week by 2030
• Stricter eligibility tests for Personal Independence Payment (PIP) claims will be introduced in November 2026
• The health-related element of Universal Credit will be frozen at £97 per week until 2030, but only for existing claimants. A top-up payment will be introduced for the most severely affected.
• Under-22s will not be eligible for the health-related element of Universal Credit at all, not just the top-up.

Public Services

Approximately 10,000 civil service jobs are expected to be cut to reduce costs.

Overseas Aid

The anticipated reduction in overseas aid will primarily fund the increase in defence spending.

Impact on Churches

The freezing of current benefits, combined with stricter eligibility tests for PIP claimants, will affect the most vulnerable in our communities, including church members. As a consequence, church-based drop-in centres and cafes, which offer a warm space, food, and pastoral support, will continue to be of critical importance.

This is a time when the strong can support the not-so-strong and, in so doing, demonstrate in practical ways the relevance of the Christian gospel.

Charity Commission warns about fraudulent letters sent on its behalf

On 17 March, the Charity Commission issued a warning regarding fraudulent letters sent to charities, claiming to originate from the Commission.

These letters may contain:

• Requests to remove trustees
• Demands to release funds
• Requests personal details of trustees, including passport information.

The letters may be signed as coming from “the Commission, Chief Executive and/or its Directors.”

To prevent fraud, the Commission confirmed the following:

• They will only send you a letter just by post only if we do not have your current email address. Check and update your details
• They will rarely address letters generically, for example ‘to whom it may concern’
• They do not write letters or emails of certification on behalf of UK charities regarding tax exemption or any other matters
• They do not issue requests to authenticate an account online by supplying personal identity documents
• They will not ask you to provide banking information

In the rare circumstance where they might send you a letter by post, it will:

• Be franked – not stamped
• Normally have a case number or reference on it
• Be unlikely to be marked as ‘Strictly Private and Confidential’
• Come from the Charity Commission for ‘England and Wales’, not the ‘UK’ or ‘England’

Action Fraud has been notified, and the Commission will continue to monitor the situation.

The message is clear: be on your guard. If a communication purporting to come from the Commission appears suspicious, contact them by phone. Remember, you should not call any number listed in the suspicious email or letter; instead, obtain information from the Charity Commission’s website.

The House of Commons debates safeguarding

On 3 March, the House of Commons debated safeguarding in the Church of England. During the debate, Jess Phillips, Parliamentary Under-Secretary of State for the Home Department and Minister for Safeguarding, confirmed that the government intends to introduce mandatory reporting of child sexual abuse. All churches and charities should regard this as an early warning to ensure that safeguarding procedures are up to date and fit for purpose.

If you are a member of your church governing body, it would be advisable to check when your safeguarding procedures were last reviewed.

Updated SORP: have your say

In a Press Release dated 28 March, the Joint SORP-making body launched a consultation process inviting comments on a revised draft of the Statement of Recommended Practice (SORP), which sets out the key accounting and reporting principles for charities.

The revised draft reflects changes introduced by the Financial Reporting Council to FRS 102, particularly in how charities will need to recognise certain types of income and leases in their accounts. The proposed improvements aim to better inform beneficiaries, donors, and the general public of how charity resources are used.

The consultation will run for twelve weeks, from 28 March until Friday 20 June. The SORP-making body wishes to hear the views of charities, trustees, independent examiners, beneficiaries, donors, and funders.

ACAT will be submitting a formal response to the consultation, but we want to hear from our members too. These changes could have a significant impact on how charities present their financial information, especially for those involved in independent examination or financial oversight.

This is a great opportunity for our members to help shape the future framework for charity accounting. If you’ve read the draft SORP or have any comments – whether specific concerns or general feedback – please send them to Ashley Ellis, ACAT Executive Officer, at ashley.ellis@acat.uk.com by 31 May 2025, so we can consider your views when preparing our response.

Charity Finance Group (CFG) will also be offering free webinars throughout May – these are available to CFG members only.

Gift Aid reclaims following the death of a donor (Clarification)

Correction: Several folk have commented about this article in our last newsletter – we’re very grateful to everyone who has been in touch. Here is the feedback from one person:

“Could you clarify whether this applies ONLY to donations received after the death of the donor, perhaps because an automated payment is processed before the bank account is frozen (which is how I read the linked Charity Tax Group briefing) or whether you are saying that we should not initiate a claim for repayment of gift aid on a donation made by the donor before their death if that donor dies after the payment is received but before we would submit a claim. We normally claim quarterly so have occasionally claimed gift aid on donations received before the donor’s death within a claim processed after the date of death.”

We are pleased to clarify what we said with this revised paragraph – the words in bold italics show the changes.:

“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 been confirmed that any Gift Aid claimed on any gift received 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.”

Consultation on financial thresholds in charity law

The UK government has launched a consultation to review financial thresholds in charity law to make sure the rules are fair and proportionate. Financial thresholds are the benchmarks that determine the level of regulation a charity must meet. These include rules around registration, financial reporting, fundraising and auditing. Larger charities which handle more public money are subject to more rules, smaller ones are protected from excessive bureaucracy.

The consultation follows a 2017 Law Commission recommendation that thresholds should be reviewed and updated for inflation. Over time inflation has meant more small charities have fallen under rules intended for larger organisations, increasing their compliance burden. This review is seeking feedback – especially from charities and sector experts – on whether the current thresholds are still right.

By reviewing these thresholds, the government wants to balance public trust and reduce red tape for smaller charities. It also fits with the broader aim of creating a more growth-friendly regulatory environment. The consultation applies to England and Wales where the Secretary of State for DCMS has the power to change thresholds by secondary legislation.

ACAT will be responding to the consultation, so if you would like to make any comments, please send them to Ashley Ellis, ACAT Executive Officer, at ashley.ellis@acat.uk.com by 31 May 2025.

How resilient is your Charity/Church?

For many this is the time when Annual Church Meetings are held. 

• Events of the past year are reported on. 
• Hopefully, an indication of future priorities will also be included
• Accounts for the past year will show the state of church finances.
• New people join the governing body and others retire.

It is an opportunity for objective reflection on all aspects of our church life.

Whether your church has recently held its annual meeting or it is a future event, the question of “resilience” is one which may be taken completely for granted. 

The continuing challenges of funding the work, growing the fellowship, supporting the membership, in addition to presenting the relevance of the Christian Faith in a very uncertain world, can be ignored on the basis that God will provide and sustain us whatever we are called to face.

However, our belief in the faithfulness of God should not preclude us from asking difficult questions regarding aspects of our church life and work. 

The secular world has long been used to the concept of a SWOT analysis. It is a tool used to assess an organisation across several areas, including:

• Strengths
• Weaknesses
• Opportunities
• Threats

The Charities Aid Foundation has recently launched a Charity Resilience Calculator, which aims to assist charities (and therefore churches) to assess their overall resilience in specific areas of the organisation.

The starting point for this exercise looks at several key areas

• Clarity of Purpose
• Underlying financial, administrative and operational support
• What demonstrable impact does the organisation’s work have?
• Does the charity value the people and culture of the local community?
• What networks is it a part of?
• Is there an awareness of wider external issues?

How resilient is your church? This could be a relevant question that yields some challenging answers.

Religious Education should be a core part of the National Curriculum

An interim report has been produced by the independent body reviewing the education curriculum and assessment system.

Submissions, which form an integral part of the report, have argued for an improvement in the range of curriculum subjects offered. This is seen as necessary to respond to the social and technological changes that have and continue to take place.

Religious education, whilst not currently in the National Curriculum, must be provided by schools. This results in a great disparity in the way the subject is delivered, or not.

If Religious Education were in the National Curriculum, it would ensure that the subject was taken as seriously as all other core educational subjects. Additionally, RE would become subject to national standards, which it is not currently.

The lack of any form of religious or ethical education in our schools should surely be a matter of concern.

We have an opportunity, through church members involved in education, to give voice to these concerns and argue strongly for the inclusion of Religious Education in the National Curriculum.

Persecuted Christians – How much do we really care?

Ruth Jones, Labour MP for Newport West and Islwyn, and member of the All-Party Parliamentary Group for International Freedom of Religion or Belief, has spoken out about the plight of the persecuted Church.

Ruth Jones has challenged the government in respect of those countries it trades with, but who continue to persecute Christians for their faith. Christians in some parts of the world are suffering unwarranted eviction from their homes, loss of employment, imprisonment and worse.

Ruth Jones also referenced the United Nations Universal Declaration of Human Rights, which covers freedom to adopt, change or retain one’s beliefs, and freedom from coercion, to identify a clear lack of accountability for those who do not uphold those principles.

The question for the UK church is, have we become complacent, deaf to the cries of our persecuted brothers and sisters in Christ wherever they are? When did we last pray for the persecuted church or contact our local member of parliament to express our concerns and demand action?

Despite the increased influence and growth in this country of other faiths in addition to apathy and secularism, we are extremely privileged in our religious freedoms. We take them for granted at our peril.

What if the story that “church is dying” isn’t just old news – it’s just plain wrong?

Three weeks ago, we reported that Bible sales had surged by approximately 87% among 18-24 year olds.

According to The Quiet Revival, a brand new report from Bible Society, church attendance in England and Wales has risen by 50% in the last 6 years – and it’s Gen Z leading the charge! In a world of uncertainty, loneliness and searching for meaning, young people are quietly filling pews, joining worship teams, volunteering and digging into Scripture. This isn’t a nostalgic return to the past – it’s a fresh and alive move of God.

Even more astonishing? More men than women are attending church and the Church is becoming more diverse than ever – nearly 50% of young Black adults aged 18–34 are attending regularly. It’s a reminder that faith isn’t fading – it’s growing and transforming in unexpected places.

Whilst some traditional denominations may be finding growth a challenge, the increases are most notable among ethnic minorities and within Roman Catholicism and Pentecostalism, denominations which are arguably at opposite ends of the theological and liturgical spectrum.

Read the full report for personal stories about people who have come to faith and see overall trends.

Could this be the quiet start of something big? What’s happening in your community?

Church of England awards grants of over £40 million for mission and ministry

In the February Newsletter, we reported that the Church Commissions proposed transferring £2.6 billion of investment assets to halt the perceived decline in Anglican parishes.

On 3 April, The Church of England announced grants of over £40 million for mission and ministry projects to attract new church members. A small step, but an important one.

These grants are spread over several dioceses and a variety of initiatives.

• Diocese of Chelmsford –  support for children and youth workers, mission on estates, and ministry in minority languages. 
• Diocese of Sheffield –  Sheffield Cathedral to become a centre of mission through funding for music ‘missioners’, a digital evangelist and support for a new religious community, as well as money for parishes in Rotherham, Goole and Doncaster.
• Carlisle Diocese is funding new worshipping communities in Barrow in Furness, Carlisle, and the rural Derwent Deanery.
• The Diocese of St Edmundsbury and Ipswich is supporting missions in Ipswich and rural areas.  
• Diocese of Rochester – to revitalise parishes in Medway, north and west Kent, and the London Boroughs of Bromley and Bexley. 
• Diocese of Winchester, St Clement’s Church in Boscombe for mission to children, young people and families

These grants reflect a commitment to fund diverse outreach opportunities and require our prayerful support and encouragement, particularly where ACAT members are involved in ensuring the effective stewardship of these grants.

Financial lessons from Easter

Easter is traditionally a time for family gatherings, egg hunts and perhaps some elements of reflection. The length of the holiday weekend provides plenty of time for enjoyment in addition to contemplating the spiritual significance of the historical Christian events.

However, does the essential message of Easter provide any practical financial stimulus or encouragement for our work as church financial administrators and trustees?

Here are four practical things we can take away from the Easter celebrations.

• Planning – Whatever we are involved in at Easter requires some degree of preparation and planning, whether family gatherings, church services or events. Financial planning/budgets should be one of the highest priorities for church accountants and treasurers. This is an essential tool for governing bodies in identifying the resources needed to support and develop the church’s mission and ministry. Ignore the simplest budgetary planning processes, and a financial disaster is likely. “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” Lk 14:28 (NIV)
• Diversification – Easter egg hunts require that the eggs be spread around, thus reducing the risk of being easily found. In financial terms, we should ensure that the church’s finances are diversified into several low-risk investments. It is also arguable that our church’s ministry outreach should also be diverse, encompassing the needs of all in our communities without discrimination.
• Growth & Renewal – Easter is a time of new life, resurrection, from which the Christian church was born. “I am the Living One; I was dead, and now look, I am alive forever and ever!” Rev 1:18 (NIV). Organisations either grow or die. Standing still is not an option. Our churches are no exception. Are the financial resources supporting your church contributing to its spiritual and numerical growth and renewal of its vision?
• Giving Back  – Resurrection demonstrates that God gave His Son to save a fallen world. If our communities are to truly thrive, poverty reduced, the marginalised uplifted, and every individual encouraged to find fulfilment, our churches must invest deeply in them. This means creating drop-in centres, offering safe spaces, and providing both spiritual and practical support for all. Churches should stand at the heart of our communities, generously offering their resources, buildings, people, and finances.

Employment Allowance

Last month, we emphasised the importance of claiming this off-set for Employers National Insurance Contributions, especially in the light of the increase in the rate applicable and lower salary thresholds. The Employment Allowance is now £10,500 per tax year.

Our attention has been drawn to the position within the Methodist Church, and we would like to remind our members in Methodist Churches of this. All Methodist Churches are treated as one group (“connected employer”) by HMRC for both the Employment Allowance and the Apprenticeship Levy. It is possible that other churches with a central or national body have the same arrangement, so please check before you claim the Employment Allowance.

Gift Aid and GASDS – rate of reclaim

Q: I am a new treasurer and have been looking at GASDS [Gift Aid Small Donations Scheme]; the handbook states: “Although technically it is not Gift Aid, the top-up payment from HMRC, and likewise the equivalent payment in respect of community buildings, is calculated in the same way as a Gift Aid payment. Where the basic rate of income tax is 20%, for small cash donations totalling £8,000 in a tax year the church will be entitled to claim a top-up payment of £2,000.” Is the statement incorrect or am I being a mathematical idiot? 20% of £8,000 is £1,600, not £2,000 (25%)

A: I agree that it looks very strange to have a tax rate of 20% yet the Gift Aid and GASDS rate of reclaim is 25%. The reason is covered on our The Basics course and our specific Gift Aid course. We encourage you to attend our courses – please see this webpage for our programme https://www.acat.uk.com/training-events/ and look out for our emails relating to training.

This is the explanation of the rate of reclaim. If you receive £100, the income tax payable is £20, so you will receive £80 in your hand (employee NIC is ignored for this purpose). If you give this net amount of £80 as a gift to a church/charity with a Gift Aid declaration, the church/charity reclaims the tax that has been paid (£20) and therefore the church/charity receives a gross gift of £100. In summary, the gift is £80 and the Gift Aid reclaimed is £20 – you can see that £20 expressed as a percentage of £80 is 25%. The formula is [‘the tax-rate’/(100 minus the tax-rate)] expressed as a percentage, which is [20/(100-20)%] or [20/80%] = 25%. In other words, for every £100 given to a church/charity, Gift Aid is £25 and the amount in the church’s/charity’s accounts is £125.

So I am sorry but there is nothing amiss in the way that the handbook is written – perhaps it ought to be explained rather than just leaving it to one of our courses. We have now added this topic to our handbook and FAQ on the website.

Gift Aid thank you letters

Q: During Basics Training, there was talk of sending out annual letters, to individuals who have donated and signed Gift Aid Declarations, thanking them, telling them how much they have donated and reminding them they need to have paid enough tax. Is there a template letter available for this, please?

A: Sending a thank you letter is a good way to keep in touch with donors and the end of the tax year is the best time to do this. The writer sends thank you letters to all individuals who have given to the church in the last tax year. For those who gift aid, it’s an opportunity for the church to remind givers of their responsibilities to HMRC. For those who don’t gift aid, you can invite them to sign up – the writer did just that one year and one lady signed up and the church was able to backdate gift aid on her gifts for a year!

ACAT doesn’t have a template letter. Each church has a different story, so why not start off by looking back and giving God thanks for where you, as a church, are now. We suggest you mention how much each individual gave and their total gift aid or include a schedule of that person’s giving (or both). You can take the opportunity of asking folk to review their giving. You should remind folk that they must have paid enough income tax or capital gains tax to cover their gift aid to your church and any other charities that they have given to. Higher rate taxpayers can be reminded that they can reclaim the difference between the rate they pay and the basic rate on their gift(s).

As you can see, we suggest that it is best to personalise your letters. If you have a lot of letters to send, the Mail Merge facility in Word is useful.

CAF Bank

Financing the Future: A Guide to Repayable Finance

Learn how repayable finance can help fund a better future for your charity, church, or social purpose organisation.

A guide to loans for charities and churches
Repayable finance is one way to advance your organisation’s goals and make a bigger difference for the communities who turn to you for support. That’s exactly what we’re here to help with.

This practical guide is designed to help charities, and therefore churches, understand how loans and repayable finance can support their vision and ministry. Whether you’re looking to purchase a new building, renovate existing facilities, or launch new income-generating activities, borrowing could be the key to moving forward—faster than fundraising alone might allow.

This guide is packed with expert insight:

• Stories of charities who used loan finance to amplify the power of good
• A clear summary of different types of repayable finance
• Tips on what lenders look for and how to make your business case

Download the guide and see how repayable finance could support your church’s mission alongside other charitable work.

How do you manage your churches finances?

Financial management may not be as exciting as direct ministry but it’s essential for your church to serve well – now and in the future.

This CAF Bank article introduces the Cupboard, Fridge, Freezer model, a simple way to think about your church’s resources: immediate needs, short-term planning and long-term investments.

• Cupboard: Cash for day-to-day essentials – bills, staff, regular activities. This should be easily accessible, ideally in current or instant-access accounts.
• Fridge: Money set aside for known upcoming needs – perhaps 3-12 months. You may get better returns here but there’s less flexibility. Think fixed-rate savings or short-term deposits.
• Freezer: Funds that can be invested for the long term. These carry more risk but can generate more returns. Consider whether investments align with your church’s mission and values.

This won’t replace professional advice but can help churches build a financial structure to support sustainable ministry.

This is a big subject and more information is available on CAF Bank’s Investment Knowledge Centre. You can also contact their Charities Team to discuss what kind of support would be right for your charity or not-for-profit organisation.

National Churches Trust

The National Churches Survey

The National Churches Trust is conducting a major survey to understand the challenges faced by those whose care for the UK’s 38,500 churches. This is an opportunity to celebrate the role of church buildings, bringing them to national attention. At a time when their future and funding is at risk, this landmark study will show the current status of church buildings, how they are maintained, funded, and the support they provide for local communities.  

All churches are different. The survey will help us see our differences and identify the common issues we face.

The survey will go live at the start of May 2025, and we encourage you to register in order that we can include your church in this study. So that you don’t miss out, please register your interest here and, in May, you will receive an invitation to participate.

easyfundraising

We’ve raised nearly £4,000 for free, providing a place of comfort and worship for all

Could your church use some fundraising advice? Loraine, Finance Administrator for her church, has shared why they think easyfundraising is a great way to raise money easily and for free. “easyfundraising is a great way for people to give additional support to our church without causing extra strain on their personal budgets. So much is bought online these days and this is a great way of supporting us without it costing extra. There is also no real effort required by the church after the initial set up, and each quarter a sum of money is paid into our bank account.”

The church has raised just shy of £4,000 to date, thanks to their congregation collecting free donations as they shop with 8,000+ retailers via the easyfundraising website or app. “In our church we make a point of sharing with the congregation how much we receive from easyfundraising each quarter. This encourages people to see that however small an amount they have raised it all adds up to make a significant difference.”

Make sure your church can receive funds for free too by clicking below.

As the spring term comes to a close, we’re turning our attention to planning our summer training programme—and we’d really value your input. Whether there are specific topics you’d like to explore or entirely new areas you think we should cover, your suggestions will help us shape a programme that’s useful, relevant, and tailored to your needs.

We’re considering running a number of popular courses again, but we’re also open to developing new sessions if there’s enough interest. If you’ve got ideas, now’s the time to let us know! From finance and governance to practical skills and new challenges facing churches, we want to ensure our offerings reflect what matters most to you.

Please share your thoughts with us and help influence the direction of our summer training. In the coming weeks, full course details will be announced on our website and newsletter.

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.