ACAT Newsletter August 2025

Do you remember those far-off days when school holidays seemed much longer? By the time you open this Newsletter, the meteorological end of summer, 31 August, will almost be upon us and Autumn on the horizon.

Now well into the third quarter of the year, the question arises, “How are your church finances?” For those with a December financial year-end, thoughts of what the financial statements might look like, not to mention 2026 budgets, become important considerations.

The continuing challenge of church finances is ever-present.

The Newsletter aims to keep members up to date with changes to charity law, finance and good governance. Additionally, we also include broader pieces which encourage “thinking beyond the balance sheet,” centring on ways in which, even as church administrators, we might enhance the fellowship and wider communities of which we are part.

In this month’s newsletter:

What’s new
- Care needed when accepting legacies – possible conflicts, with donors in vulnerable circumstances.
- How seriously do we take church repairs & maintenance planning?
- Regulator investigations show governance and financial controls matter
- UK Stewardship Code 2026
- An advance notice – Disability Awareness Sunday
- The ACAT annual conference – why attend in person?
- Enjoying this month’s highlights?
Points to Ponder
- A sacred pause – The importance of “time away”
- Supporting younger church members during the August exam results
- A Theology of Safeguarding
- Wing and prayer: restored aircraft lands in Cathedral nave
Helpline Q&A
- The church is receiving money from a will
- Excepted charities
Also of Interest
- The impact churches & charities can have during challenging financial times.
Partners in Ministry
- CAF | Risk and Reward in Charity Investments
- Unity Trust Bank
- easyfundraising
- ACIE UK-Wide Online Conference
New Autumn Training Programme
Charities Engagement Team – Upcoming webinars
Final Thought

God bless,

Ashley Ellis
ACAT Executive Officer

How seriously do we take church repairs & maintenance planning?

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

Implications of the Listed Places of Worship Grant Scheme ending March 2026.

First established in 2001, the Listed Places of Worship (LPWGS) Grant Scheme has provided grants towards the VAT on repairs of over £1,000 to listed buildings used as places of worship.

This scheme has been a lifeline for many churches with listed building status, seeking to fund costly repairs and maintenance. However, LPWGS has only been extended until 31 March 2026.

The Culture, Media and Sport Select Committee has recently warned that failing to make the Listed Places of Worship Grant Scheme (LPWGS) permanent would leave historical churches at risk. The Committee has urged a review of the scheme’s budget and an increase in the claim threshold.

Do we have a church repair & maintenance plan?

All of this raises the question: to what extent do we take seriously the ongoing repairs and maintenance of our church buildings, including the facilities provided for our members? Worship and related events in uncomfortable, poorly maintained buildings do very little to encourage ministry and outreach.

There is no general legal requirement for churches to have a formal building repair and maintenance plan. However, it is considered best practice, and most denominations make it a requirement. Those designated as listed buildings are subject to regulations requiring regular inspections and maintenance plans. This is particularly relevant to Anglican churches.

Benefits of a repair & maintenance plan

Regular maintenance can help identify and deal with minor issues before they become major, costly repairs.
A plan helps churches budget for future maintenance needs and is important when seeking grant funding.

A maintenance plan ensures compliance with regulations and helps avoid potential penalties for those churches with statutory obligations.
A repair and maintenance plan should ensure an extended life for the buildings and associated facilities.

Keeping our churches in good order is part of our trustee responsibilities

Charity law requires trustees to act responsibly and in a businesslike manner. Maintaining our church buildings and facilities is arguably an essential part of those requirements.

Ensuring that our church buildings and associated facilities are well-maintained is surely also an essential element in our stewardship of God given resources.

The National Churches Trust provides helpful advice and support when constructing and funding repair and maintenance plans.

Regulator investigations show governance and financial controls matter

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

The Charity Commission has launched investigations into two church related charities, once again highlighting the importance of good governance and financial oversight.

Holy Trinity Micklegate PCC (York) is being investigated after not filing annual accounts for two years. Trustees themselves reported issues with previous financial management, conflicts of interest and potential losses to the charity.
Edmund Kell Unitarian Church and Elizabeth Kell Community Hall is being investigated after almost £300,000 went missing from their accounts and investment portfolio. The regulator is also looking at safeguarding and whether trustees had sufficient oversight of the charity’s finances.

For treasurers and trustees, these cases are a timely reminder that good governance, transparent reporting and strong internal controls are not optional extras but legal and spiritual responsibilities. Churches as stewards of resources given to them must ensure their practices meet regulatory requirements and their wider duty of care.

And it’s not just financial controls under scrutiny. The Information Commissioner’s Office (ICO) recently fined the Scottish charity Birthlink £18,000 for destroying irreplaceable adoption records. Investigators found serious weaknesses in data protection knowledge and record management, leading to the permanent loss of personal letters, photographs, and documents. A sobering reminder that governance responsibilities extend beyond finance to the way we handle people’s data.

See the Charity Commission and ICO reports below.

A sacred pause – The importance of “time away”

#Faith & Theology in Action, #Opinion, #Encouraged Action

The holiday season is almost over. People of all ages have been getting away from their normal daily routine to spend time in a different place, relaxing and recharging their personal batteries.

Whilst the once or twice a year holiday is often beneficial, particularly for families, getting away for a short break offers a valuable opportunity to step away from the demands of daily life.

At a personal level, “retreats” offer space for reflection, rejuvenation, and personal growth, allowing individuals to disconnect from distractions, improve well-being and develop a more fulfilling life.

For those of us involved in the practical issues associated with church administration, it can be tempting to dismiss any need to take time away. Saying to ourselves, “It may only be for a few days, but who else will look after the church accounts whilst I’m away?”

But some of the benefits of time away on retreat, having a sacred pause, are:

We need rest
Jesus’ example, choosing to go away from time to time
We need to be able to quietly reflect on issues which concern us
We need to be able to meditate away from the daily routines
Retreats encourage personal discipleship and accountability
Retreats can open us up to change, personal and vocational
Retreats offer dedicated time for personal prayer and worship

Thomas Green, spiritual director in the Ignatian tradition, says this about a good retreat:

“I always suggest that three guidelines for a good retreat are…ESP: to eat well, to sleep well, and to pray the rest of the time. This means that I make it a real vacation. I don’t just give the Lord part of my time and part of myself; rather I seek, in the classic monastic phrase, to vacare Deo, to be totally free for the Lord.” (Thomas H. Green, SJ, A Vacation With the Lord [Notre Dame, IN: Ave Maria Press, 1986], p. 21.)

So, here’s the question. When was the last time you took yourself away for that “sacred pause and when do you intend to repeat it?”

For those involved in paid ministry, Ecclesiastical offers bursaries for longer retreats and sabbaticals.

A Theology of Safeguarding

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

Safeguarding is one of those areas of church life where we need to be constantly vigilant. I suspect that much of our approach is governed by policies and procedures centred around the following six principles of safeguarding:

Empowerment – People being supported and encouraged to make their own decisions and give informed consent
Prevention – It is better to take action before harm occurs.
Proportionality – The least intrusive response appropriate to the risk presented.
Protection – Support and representation for those in greatest need.
Partnership – Local solutions through services working with their communities. Communities have a part to play in preventing, detecting and reporting neglect and abuse.
Accountability – Accountability and transparency in safeguarding practice

SCIE (UK Social Care Institute for Excellence)

Methodist Church Safeguarding Course: God Welcomes All

The Methodist Church has published reflections of a group that has worked through the theology of safeguarding course, God Welcomes All. This study course aims to explore how faith informs safeguarding, centring on the following aspects:

Safeguarding is not something we do because we must, but rather it is at the heart of the Christian Faith.
When we say “all are welcome” in our churches, what do we mean?
A church community should be one marked out by the care and love for one another; however, the reality of human nature and the wickedness people are capable of should be recognised.
The need to prioritise the welfare of the vulnerable in our churches must be paramount
Wisdom is needed to discern where to set the boundaries
God is faithful despite the frailties of human nature
The abuse of power within churches must be guarded against
Recognise that some aspects of worship and liturgy may be problematic for some church members because of their past experiences, e.g. Mothering Sunday

As members of our church governing body, who are ultimately responsible for safeguarding this faith-based perspective, it raises questions.

What is our approach to safeguarding based upon?
Does this make a difference to the way we protect and care for the vulnerable?
If so, how and in what ways?

Wing and prayer: restored aircraft lands in Cathedral nave

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

Simon Lace, Rochester Cathedral’s chief operating officer, inspired by the 2012 Theos report Spiritual Capital: the Present and Future of English Cathedrals, which suggested that sacred spaces could and should be opened for public use, has overseen some controversial installations since he joined the cathedral management team in 2017.

These have included

Crazy golf in the nave
Touring art installations, including — in September 2019 — the 27ft Knife Angel statue created by artist Alfie Bradley from 100,000 blades confiscated by police.
Museum of the Moon by Luke Jerram, a balloon 23ft in diameter, in February 2020
The Peace Doves — a cascade of thousands of paper doves by Peter Walker in 2023

The latest installation this summer is a restored aircraft resting in the nave.

The bright yellow Short Scion Floatplane was rescued from dilapidation by an aircraft restoration group in the Medway Towns in 2013 and will be on display in Rochester Cathedral until the end of August.

This use of sacred space for secular exhibitions and installations has been repeated in other cathedrals around the country with the aim of increasing visitor numbers and generating additional revenue as a result.

Whilst our churches may not have the space required for large exhibits, the question arises, “Does our sacred space stand empty when not being used for worship or specific church activities?”

If so, are we missing an opportunity to attract visitors, members of the community who otherwise would seldom, if ever, come through the doors?

This may be a controversial subject, but sacred space used creatively can be a very effective means of outreach.

Have any of our members any thoughts and suggestions on the subject?

The church is receiving money from a will

Q: I have received the first legacy from a will (£2,000). Is there anything special that I need to do, please?

A: It’s encouraging for your church to have this extra income – obviously, it is sad that someone passed away in the first instance. At the moment, all I have are questions, and I need to leave you and the church to decide the best way forward.

One key point to establish is whether there are any restrictions on the legacy. Is it for building work or upkeep of something? If it is, you will need to allocate this to a Restricted Fund and use the money only for this work. If it is ‘Unrestricted’, then it could go to your General Fund, or it could be ‘Designated’ by the trustees so that it is spent on a particular project, perhaps with a view to keeping the donor in memory. In our online handbook, we have several explanations of accounting funds starting with Chapter 1, Section 1, Paragraph d:

https://www.acat.uk.com/handbook/chapter-1-church-finances-building-blocks/ [login required]

Coming back to the first sentence of this paragraph, you should ask to see the will or at least an extract about this bequest so that you (and the church) ensure that you follow the donor’s wishes.

If the legacy is left for a specific purpose that the church is unable to fulfil, what should be done? For example, the legacy is left for the maintenance and repair of the organ; however, the organ was taken out of the church several years ago, and the church has a piano and other instruments. Obviously, this is a sensitive matter, but the church will need to talk to the executors to find a mutually beneficial way forward – which may involve taking legal advice. More broadly, the Charity Commission have guidance headed “Accepting, refusing and returning donations to your charity”.
You say it is the ‘first legacy’ – does this mean that there is more to come? Now I don’t know the income of your church – I can’t find your church on a Charity Commission search https://register-of-charities.charitycommission.gov.uk/en/charity-search, so I assume that you are an ‘excepted’ charity. If this legacy brings your income in any one financial year above £100,000, then you are required to register with the Charity Commission. There is an acceptable way to avoid this by treating the legacy income as Endowment income. The money can be moved across to the General Fund in later years, provided the income, including the transfer, remains at £100,000 or below. There is information in our online handbook, Chapter 17, Sections 1 and 2: https://www.acat.uk.com/handbook/chapter-17-registration-of-charities-in-england-and-wales/ [login required]
If the benefactor has a family, you may wish to thank them for their relative’s gift and thoughtfulness.
Thinking about family, if the legacy is given via a member of the family, because they are one of the executors, it does happen because solicitors are not always used, then you must not claim Gift Aid on this transaction. When a person passes on gifts received from others (e.g. sponsorship events), such a gift is never the basis for a Gift Aid claim. Bequests to a charity (i.e. church) can often be used to minimise Inheritance Tax, so they must never form part of a Gift Aid reclaim. Of course, if your church member has been left money in the will and they decide to give all or a part to a charity (i.e. your church), then this is a valid gift for Gift Aid, subject to all the usual rules.
When you come to your Annual Accounts, you will show the legacy on a separate row – perhaps “Bequest from . . .” – personally, I like to show the beneficiary(ies) somewhere in the accounts or financial report.

I don’t know what sort of answer you are expecting, but I trust that this gives you something to work with.

Excepted charities

Q: The problem with the Economic Crime and Corporate Transparency Act is that utility suppliers are now applying the test of “is NNNN URC registered with the government?” The answer is “no” because we are an excepted charity, not a registered one. As a result, we are having difficulty with a phone provider and the gas supply company.

No amount of explanation by me about how the URC structure works is sufficient for the utility suppliers. One of them wants me to register as a sole trader “XXXX trading as NNNN URC.” I have declined.

So far, the situation is manageable, but I suspect it is just a matter of time before our bank picks up the matter. If our bank froze the account, we would be in trouble. I am sure we are not the only small church with this problem.

A: This enquiry comes to us on an occasional basis due to various situations. The problem is that computers look for a Registered Charity Number when they are dealing with an organisation which has charitable objectives (e.g. advancement of religion). What are the options?

Explain to the bank, utility provider or solicitors that the church is an Excepted Charity. This is a legal situation under the Charities Act 2011 for churches whose income is £100k or below, who are part of a specified denomination and who are not Charitable Incorporated Organisations. There is information here on the Charity Commission website: https://www.gov.uk/government/publications/excepted-charities/excepted-charities–2 (see Section 5)
Please do not quote someone else’s Registered Charity Number, e.g. your Diocesan Office or central denomination.
Anglican churches may be able to use the A-church-near-you website as proof of who they are. This particular enquiry comes from a URC church, and their website has a standard letter for churches in their denomination. Churches in membership with the Baptist Union can contact Support Services in Didcot, who will issue a letter.
If a church is applying to open a bank account, then some banks specialise in charities, so they will be more familiar with the concept of ‘excepted’ charities. We know that the Co-operative Bank will only open accounts for Registered Charities
At the end of the day, there is no easy answer this side of registration. But persistence and persuasion will be useful attributes in dealing with this.

If you are having problems, the Charity Commission have said that they are happy for such churches to go through the process to register as a charity. Once that is done, you will have to provide all the information required by a registered charity each year. Just to remind you, ‘excepted’ status is scheduled to come to an end on 31st March 2031.

The impact churches & charities can have during challenging financial times.

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

The Charity Commission recently published summary findings based on an analysis of the data from charity annual returns for 2023. These are as follows:

Charitable expenditure was £95.75 billion, an increase of 9.6% on 2022
Donations and legacies totalled £31.4 billion and accounted for 33% of charitable income.
The gap between expenditure and income reduced from £2.9billion (2022) to £0.7billion.
55% of charities’ income exceeded expenditure
Overall, it was estimated that 9% of the population relied upon food/medical aid/financial support from charities as opposed to an estimated 3% in 2018.

The simple conclusions to be drawn from the summary data are that:

More people than ever are relying on charitable support, as evidenced by the growth in and dependency on food banks in particular.
The charitable sector is fundamental to the well-being of society
Charities are undoubtedly key to supporting the disadvantaged and those on the margins of society.
In many respects, the work charities engage in eases some of the pressure on public services and the government’s purse.

Evidence points to the increasingly important role that our churches play in providing community support in these areas of need.

Without pressing the point, the willingness to be involved, frequently in partnership with secular organisations, presents an opportunity to demonstrate the relevance of the Christian gospel in some very practical ways.

easyfundraising

Your church could receive one of TEN £500 funding pots

eBay and our partner easyfundraising have teamed up to launch the £5,000 Big Give. They will donate ten £500 micro grants this autumn – and churches are eligible.

Your church could receive one of these grants simply by letting your congregation, clergy and community know that if they buy from eBay via the easyfundraising website or app during September, your church automatically gets a chance to receive £500 in extra funding.

For a chance to receive this funding, just follow these simple steps:

Firstly, register your church with easyfundraising here: www.easyfundraising.org.uk/acat

– it’s a free and secure website where online retailers will donate money to your church when your church community shops with them.

Then, ask your church network (congregation, clergy, etc) to join in and shop with eBay through the easyfundraising website or app by 30 September. Each time one of them does, your church goes into the draw to receive one of TEN £500 micro grants.

(Plus, when your community buys from eBay, your church also receives a small percentage of their spend as a donation at no extra cost, all courtesy of eBay!)

Let everyone know how they can help – for free!

And good news – easyfundraising will help you ask your supporters to get involved by providing you with ready written messaging, images and flyers to share across your social media channels, pin to noticeboards and include in newsletters.

easyfundraising has been helping good causes receive free funding for 20 years, with over £62m donated to date.

Don’t miss this big funding opportunity for your church, sign up to easyfundraising now to get started: www.easyfundraising.org.uk/acat

easyfundraising webinar

We are offering a FREE webinar in conjunction with easyfundraising.

Wanting to access a new funding stream for your church?

easyfundraising is a free to use fundraising platform which your church can use to receive unrestricted funding on an ongoing basis. We want to help your church access this exciting opportunity to grow your churches finances.

To find out more about easyfundraising and set up a free easyfundraising page for your church ahead of the session, visit https://www.easyfundraising.org.uk/acat or contact becky@easyfundraising.org.uk

Welcome, Guest

ACAT Newsletter August 2025

ACAT’s Newsletter

Final Thought

Thank you for your support!

ACAT Newsletter August 2025

ACAT’s Newsletter

ACAT’s Newsletter

What’s new

Care needed when accepting legacies – possible conflicts, with donors in vulnerable circumstances.

How seriously do we take church repairs & maintenance planning?

Regulator investigations show governance and financial controls matter

UK Stewardship Code 2026

An advance notice – Disability Awareness Sunday

The ACAT annual conference – why attend in person?

Enjoying this month’s highlights?

Points to Ponder

A sacred pause – The importance of “time away”

Supporting younger church members during the August exam results

A Theology of Safeguarding

Methodist Church Safeguarding Course: God Welcomes All

Wing and prayer: restored aircraft lands in Cathedral nave

Helpline Q&A

The church is receiving money from a will

Excepted charities

Also of Interest

The impact churches & charities can have during challenging financial times.

Partners in Ministry

CAF | Risk and Reward in Charity Investments

Unity Trust Bank

Unity Trust Bank gets Investment Grade Credit Rating

Unity Trust Bank Impact Toolkit

easyfundraising

Your church could receive one of TEN £500 funding pots

easyfundraising webinar

ACIE UK-Wide Online Conference

New Autumn Training Programme

Charities Engagement Team – Upcoming webinars

Did you know?

Final Thought

Thank you for your support!