By any measure, it’s been a difficult few weeks. With temperatures at record levels and rainfall in short supply, life has been a challenge, to say the least. The consequences of continuing drought conditions, both in economic terms and in the need to adjust our lifestyles to accommodate the impact of climate change, are likely to be significant.

The underlying question is one of resilience. How prepared are we for changes which impact our lives?

The extent to which our churches are resilient to the unforeseen is a theme this month.

Whether it’s finance, IT systems or awareness of complex risks which church governance faces, the message is clear. Complacency is costly.

It is our continuing prayerful hope that the articles which make up our monthly Newsletters provide the necessary advice and support, in as clear and concise a way as possible, to encourage more member churches to adopt measures to ensure preparedness for whatever the future holds.

Table of Contents:

• What’s new
  • Charity Investment Governance Principles
  • Banking administration takes up 12 million hours of charity time annually
  • Charities urged to prepare for compliance with EHRC Code of Practice
  • Terrorism (Protection of Premises) Act 2025 – Its importance for churches
  • Enjoying this month’s highlights?
• Points to Ponder
  • Christian experts in artificial intelligence produce guidelines for its use
  • How financially resilient is your church?
  • Charities face increasingly complex attacks, warns regulator
• Partners in Ministry
  • Over £87,000 donated
  • Mind the Gap Conference
• ACAT 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 sender’s 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/

Charity Investment Governance Principles

#Finance & Fundraising, #News, #Encouraged Action.

Churches with investments should consider having an appropriate investment policy, even if the sums involved are relatively small. 

That policy should address issues such as:

• Investment purpose
• Attitude to risk
• Type of investments
• Required access to funds
• Trustee responsibilities
• Delegated management and control of investments
• External advisors, if any
• Periodic reporting

Charity Investment Governance Principles have been developed by a Steering Group made up of Charity Finance Group, Association of Charitable Foundations, National Council for Voluntary Organisations, Wales Council for Voluntary Action and the Secretariat of the Charities Responsible Investment Network, consulting over 100 charities and drawing on input from professional advisers and firms.

The Charity Investment Governance Principles incorporate a Self-Assessment Tool which enables trustees to assess:

• Key investment objectives and outcomes
• Whether those objectives and outcomes have been achieved
• Explanatory notes and supporting information
• Dates for review and future reference

All of which are considered according to seven basic principles:

• Purpose of the investments
• Leadership by trustees, including delegation of investment responsibilities
• Maintaining integrity in investment policy and decisions
• Decision-making and risk control
• Effectiveness of the investment policy and procedures in place
• Equity, diversity and inclusion
• Openness and accountability.

The principles reinforce the message that the size and nature of the financial resources available are not relevant. 

It is essential that there are policies and procedures in place based on accountability, transparency and integrity and that they demonstrate effective stewardship of the funds held or invested.

So, how does your church go about managing its financial investments? 

When was this process or policy last reviewed? 

Banking administration takes up 12 million hours of charity time annually 

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

According to the Charity Banking Report 2026, published by the Charity Finance Group (CFG), UK charities collectively spend an estimated 12 million hours a year on banking administration. This is equivalent to around 6,000 full-time staff doing nothing else.

There’s some good news: difficulty changing signatories on account mandates, long the top complaint, has fallen from 75% of charities in 2024 to 53% in 2026, following closer work between CFG, banks and regulators.

But new pressures are growing. Around four in ten small charities are now being charged for routine services like paying in cash and cheques, and difficulty accessing in-person banking has jumped from 4% in 2024 to 31% in 2026 as branches close. This is hitting rural charities particularly hard, reflecting comments we hear from members who live some distance from their nearest bank. CFG reports that some charities have resorted to workarounds such as storing cash at home or routing funds through volunteers’ personal accounts when they can’t get old mandates updated, which brings its own governance risks. As churches, we need to make sure we have robust policies in place that set out how cash from collections and other sources should be stored and paid into the church bank account.

CFG is urging banks to simplify processes further and review fees for small charities. In the meantime, treasurers and trustees are encouraged to stay “bank fit”. This means keeping mandates and governance records up to date and checking whether their current bank still meets their needs. Although changing banks can come with its own problems, it may help in the long run.

Charities urged to prepare for compliance with EHRC Code of Practice

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

The Charity Commission has issued a reminder that the Equality and Human Rights Commission (EHRC) guidance regarding the Equality Act 2010: Code of Practice for services, public functions, and associations 2026 came into effect on 5 August. 

The Commission advises charities to take steps to ensure they comply with the Code and the law, in particular the definition of sex under the Equality Act 2010. The Commission aims to publish its updated guidance during the autumn.

Whilst the relevance of this guidance for churches may appear to be tangential, awareness of the possibility of discrimination within the church community is of critical importance and can easily become an issue.

Terrorism (Protection of Premises) Act 2025 – Its importance for churches

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

The Terrorism (Protection of Premises) Act 2025 was passed in April 2025 with a two-year implementation period .

It is also known as Martyn’s Law, named after Martyn Hett, a victim of the Manchester Arena attack. 

The legislation requires certain public venues and events across the UK to improve security measures and response procedures to terrorist threats. The Act uses the number of people reasonably expected to be present at the same time and has two tiers:

• Standard Tier (200 to 799 capacity): 
• Enhanced Tier (800+ capacity): 

The government subsequently published statutory guidance in April this year, which was updated on 7 August.

Regrettably, terrorism is a real and ever-present threat, and for many of our smaller churches and places of worship, the legislation arguably will not apply because attendance levels fall below the standard tier level of 200 people.

Larger churches will almost certainly fall within the scope of the Act and be in the standard tier. 

Churches that have services where it is reasonable to expect 800+ people in attendance are still required to follow the standard tier expectations for standard church services and activities, but when a church runs special events with 800+ people, it may also fall into the scope of the enhanced tier.

It is vital that church governing bodies take this issue seriously. The main considerations are:

• Safe evacuation of the premises where the threat might emanate internally
• Protection of the people inside a building where the threat is external
• How to communicate the situation clearly to the emergency services
• Who has the ultimate responsibility within the church leadership in the event of a threat emerging?
• Has a risk assessment been done of the likelihood of a terrorist threat?
• Is there an action plan which deals with any threat?

This is not something to ignore on the basis that “our church is in a safe area and unlikely to be threatened.”

Complacency might prove costly.

The Church Office has some wonderful resources and information on the matter, and we urge you to have a look.

Christian experts in artificial intelligence produce guidelines for its use

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

A currently recurring theme is that of Artificial Intelligence (AI) and its use in various aspects of church life and ministry. 

Our ACAT Weekly – Week 32 2026 post contained a warning from the retiring Bishop of Oxford, Steven Croft, who expressed concern not only about the pace of AI development but also about the extent to which it is under control.

With that very much in mind, the AI Christian Partnership has produced some useful guidance for churches to assist in the use of AI. This is based on good practice and some basic principles to follow.

The AI Christian Partnership is a not-for-profit organisation made up of Christian organisations, theologians, technologists and academics who share a common concern about how AI will impact the church, work and ministry. 

Their focus is on encouraging AI literacy among Christians by formulating a practical response to AI wherever it is used, but particularly in the context of church life, leadership, and ministry.

It is suggested that the use of AI should be based on six ethical principles:

• Transparency – people should know when AI is or has been used in their church.
•  Accountability – church leaders always remain accountable for the consequences of AI-based teaching, administrative or other IT software used to support the work and ministry of the church. This is fundamental to their role as trustees.
• Human Dignity – AI must never replace pastoral relationships
• Privacy – personal, sensitive pastoral data must be protected and remain private.
• Stewardship of Creation – An awareness that AI uses energy, which has an environmental cost.
• Ensuring the Common Good – protecting what is good for the church, community, and the world is essential.

In addition to the ethical principles, the following summary guidelines are suggested when using AI:

• Ask pertinent, relevant questions – AI tends to be very affirming; don’t be afraid to question this.
• Fact-check what AI produces – Use other sources to verify what AI produces.
• Use AI to critique work rather than using it to create or source items.
• Be Transparent – Ensure people know when AI is being or has been used.
• Limit AI Use – Agree on when and in what circumstances the use of AI is acceptable.
• Discern truth from what is false – Always verify from other sources what AI produces.
• Do not treat AI as an expert – It is not.
• Avoid using AI where possible – don’t simply ‘go with the flow’; use traditional IT approaches where appropriate.

The central point that emerges is that AI is now a fundamental part of all our lives, including that which supports the ministry and outreach of our churches. In saying this, it is all too easy to be accepting of technological change without challenging it. 

At the heart of what we do, whether as financial administrators or in wider governance and leadership roles within our churches, is a responsibility to uphold “what is true.” That responsibility extends to all aspects of our work.

Anything sourced or produced by artificial intelligence must be carefully scrutinised, as with all things, ultimate responsibility for what happens within our church remains with the governing body. 

The governing body is a group of human beings.

How financially resilient is your church?

#Finance & Fundraising, #News, #Encouraged Action

Financial resilience, the ability to withstand unexpected events that have a financial impact on church finances, is a frequently raised topic.

Unexpected capital expenditure on a new church boiler or major roof repairs, and the death of significant regular donors, are two significant issues which can seriously undermine church finances.

Whilst the unexpected, by definition, cannot be planned for in any detail, it should not be ignored and, should the worst happen, left to divine providence to resolve.

The Charities Aid Foundation asks the question, “How resilient is your charity?” In response, they have produced a resilience calculator, which, in summary, attempts to:

• Identify the areas where your church is most and least resilient.
• Compare your resilience results against charities of a similar size and the wider charity sector.
• Help you reflect on approaches to building resilience across the whole church’s financial structure.

However, the calculator is only a general guide for informational purposes and should not replace legal or specialist advice relevant to your church’s specific circumstances. 

Management of church finances is rarely simple or straightforward. But if we are to be businesslike, not to mention adhering to biblical precepts, then some consideration of financial resilience planning should be a priority.

After all, this is “kingdom business.”

Charities face increasingly complex attacks, warns regulator

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

The Charity Commission has issued its second annual Charity Risk Assessment report, which highlights increased concern about charitable status being abused for private benefit.

Whilst this may not directly be an issue for churches, nevertheless, the approach and attitude of individual trustees to their responsibilities can sometimes be an issue and something which governing bodies as a whole need to be aware of. 

Areas which the Commission highlights in the report and which will be of more direct relevance include:

• Conflicts of interest, which can be a danger even in church-based decision-making.
• Continuing financial strains, including increased costs, reduced income, and the need for careful financial planning.
• Technological risks, arising from the too-rapid development of digital IT solutions.
• Safeguarding, including the need for trustees to take full responsibility for assessment.
• Governance weaknesses.

The risks highlighted in this report are not only important but also easily overlooked, and for that reason alone, should be the subject of an objective review by all church governing bodies.

Over £87,000 donated

This summer, almost £90,000 in unrestricted funding has been donated to churches through the easyfundraising platform.

Through this free to use and trusted website, thousands of online retailers will donate money to your church when your congregation shops with them. Popular retailers who will donate to your church include Tesco, trainline, eBay, Argos, Asda, Sainsbury’s, John Lewis, M&S, Boots, Booking.com and 8,000 others.

Every three months, the donations are paid to your church as unrestricted funding, to spend on whatever you need. easyfundraising is already trusted by lots of churches in your region who are raising much needed funds this way.

The next funding payout is due in November and your church can be part of it by setting up your free easyfundraising page here: https://www.easyfundraising.org.uk/acat

Mind the Gap Conference

Our partners over at The Church Office are running a conference for church leaders, operations managers, trustees, PCC members, and key team members leading in that space.

Much of church leadership doesn’t happen on the platform; it happens in the GAP.

The space between vision and delivery. Between responsibility and authority. Between senior leaders and the wider team.

Through practical teaching and honest conversation, they will explore:

• What life in the GAP really feels like and how to navigate it well.
• The skills needed to lead with clarity in complexity.
• How to work effectively with senior leaders and teams.
• How to lead with influence.

The conference will be running once in the north and once in the south:

The South Conference: 16 September

The North Conference: 29 September

Gavin Smith, founder of The Church Office, will be our keynote speaker at the ACAT Conference 2026, and we encourage you to learn more about the Mind the Gap Conference as well as ACAT’s.

• Introduction to Computer Security for churches
  • Date: Monday 14 September
  • Time: 7.30 – 8.30 PM
• Introduction to being a Church Trustee: Some things to think about
  • Date: Tuesday 22 September
  • Time: 7 – 8 PM
• Being a Treasurer: The Basics (in-person event)
  • Date: Saturday 26 September
  • Time: 10 AM – 4 PM
  • Location: London
• 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 September 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.