The pace of life in our 21st century world shows no sign of slowing down. Traditionally Autumn is a time to pause, reflect on the consequences of decisions taken earlier in the year and prepare for what may lie ahead.

Harvest is past, for good or ill and nature’s cycle begins again, preparing the ground for seed to be sown in the Spring.

For anyone involved in Church financial administration, preparation for what winter may bring is always advisable. Are the buildings in good order? Do they provide a warm, safe space for the folk who will enter for whatever reason?

Are the finances in a reasonable state? What decisions might be needed to prepare for next year’s challenges?

I have little doubt that the subjects and issues included in this October Newsletter will help you to reflect and prepare.

In this month’s newsletter:

• What’s new
  • Survey reveals thousands of UK Churches may close by 2030
  • Regulator finds challenges to financial resilience among serious risks facing Charities
  • Preparing for winter and firework & bonfire events
  • Churches registered with The Charity Commission – October Filing Deadline
  • Building Confidence in Corporate Fundraising
  • Charity trustee finance tool kit
  • ACAT AGM and Annual Report
  • Enjoying this month’s highlights?
• Points to Ponder
  • Try Praying
  • Hundreds of churches are part of networks offering ‘warm spaces’ to people.
  • Protecting church IT systems
  • Interfaith dialogue in times of community tensions
• Helpline Q&A
  • Proving charitable status as an Excepted Charity
  • Paying tax on interest received
  • Paying people for church activities
• Partners in Ministry
  • ACIE UK-Wide Online Conference
  • easyfundraising
• Autumn 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/

Survey reveals thousands of UK Churches may close by 2030

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

The National Churches Trust has recently published a survey expressing concerns that as many as 2,000 churches across the UK could close within the next five years. The survey, carried out during May and June this year was based on a response from 3,600 congregations across England, Scotland, Wales and Northern Ireland in May and June.

The main conclusions from churches responding to the survey were:

• 5% were unsure whether they would be open in 2030
• 7% anticipated closure by 2030
• Rural churches appear to be the most vulnerable
• Confidence was high among churches with listed building status

Among denominations anticipating closure by 2030:

• 12% of Methodist churches
• 9% of Presbyterians
• 4% of Anglicans

Matters of Concern

• Increased financial challenges
• Dwindling congregations, particularly in rural areas
• Population drift away from rural areas

Conclusion

The findings from this survey indicate likely closures appear at odds with the perceived recent increase across the country in church attendance. However, the latter may only be a feature of urban and city centre churches.

Is part of the answer to the threat of church closures a more collaborative approach to ministry across denominational boundaries? One which we as treasurers and church administrators should be embracing, if we aren’t already.

Regulator finds challenges to financial resilience among serious risks facing Charities

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

A press release by the Charity Commission on 25 September sought to identify current risks which the charity sector faces in maintaining its financial resilience.

This is of particular importance to churches as the term ‘financial resilience’ may not be familiar to many. In summary, financial resilience in a church context may be defined as the ability of the organisation to withstand unexpected events which could have a serious impact on its ability to continue financially. 

The Commission has identified the following issues contributing to financial pressures in the charity sector, of which churches form a significant part.

• Increased demand for services,
• Rising cost of employing staff 
• Impact of inflation on the value of funding.

22.5% of charities reported an operating deficit in their 2023 Annual Return, up from 20% in 2022. 

General actions trustees can do to build financial resilience

Trustees and church Treasurers are required to understand and comply with their statutory responsibilities as they relate to effective financial stewardship, 

Actions include:

• Ensure adequate time to plan the next budget year.
• Ensure financial reporting is fit for purpose.
• Regularly review financial forecasting to determine variations to expenditure and income. 
• Evaluating opportunities to deliver the church’s mission and ministry (its charitable purpose) more efficiently

Specific considerations to ensure financial resilience:

• Coping with shocks: 

Sudden financial setbacks, reduced income or unexpected increases in costs or unforeseen high value expenditure requirements. 

• Long-term planning: 

Annual budgets combining financial planning for more than one year. Gradually build up financial reserves, however small. Prepare realistic budgets.

• Recovering from possible deficits: 

How does the church propose to eliminate a projected financial deficit? 

• Reduce the stress of financial management  

Prayerfully prepare simple financial plans. Ensure all members of the church governing body accepts and works with them responsibly.

Preparing for winter and firework & bonfire events

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

As the nights draw in and the air turns colder, we are entering not only the season of bonfires and firework displays but also the time to prepare our churches and communities for winter. Both occasions bring enjoyment and celebration, but they also require careful planning, safety awareness, and practical preparation.

Ecclesiastical has some great resources available to help you plan for winter and events. Do give them a read, and if needed, consult your own insurers for more specific advice or guidance.

Preparation is key to making sure you know how to respond and to mitigate any risks.

Churches registered with The Charity Commission – October Filing Deadline

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

A gentle reminder for those churches registered with the Charity Commission and whose financial year end is 31 December. 

If your Trustees’ Annual Report and Accounts (TAR) are usually reported as of 31 December, they are due for filing no later than 31 October.

The rule is that all annual returns for churches and charities registered with the Commission must be filed no later than ten months after their financial year end.

It is also worth noting that the Annual Return for those charities with a financial year ending in 2025 is now available, incorporating some content changes outlined in the June ACAT Newsletter.

Building Confidence in Corporate Fundraising

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

Recent reports and events highlight valuable opportunities for churches and charities to strengthen relationships with the business community.

Corporate Giving: The 2025 Picture

The Charities Aid Foundation (CAF) Corporate Giving Report 2025 shows UK businesses donated an estimated £4.26 billion in 2024 — but less than half came from FTSE 100 companies. While in-kind support such as goods and employee volunteering is increasing, unrestricted cash giving fell by £300 million.

Still, many firms continue to give generously. Top FTSE 100 donors included GSK (£363m), Tesco (£144m), AstraZeneca (£101m) and Sainsbury’s (13% of pre-tax profits). Encouragingly, over half of companies (52%) support causes local to their operations — a reminder that community-based projects resonate most strongly.

Lessons for Church and Community Fundraising

The report has some useful takeaways for churches and local charities:

• Engage with the business community — don’t miss out on potential partnerships.
• Develop projects with local impact — projects that strengthen community ties resonate with corporate donors.
• Show public benefit — demonstrate how your outreach aligns with charitable and social responsibility goals.
• Approach local branches or offices of national organisations — many have the autonomy to support local causes.

Learn More: Free Webinar

Upcoming sessions may help refine your fundraising approach:

• Approaching corporate relationships with confidence – CAF
  Wednesday 5 November 2025, 1:30–2:20pm (Zoom)

As the report says, “Corporate giving is not an optional extra. It’s a core part of responsible business that employees and customers expect.” With some thought, churches and community organisations can be seen as trusted partners in this shared mission.

After all, they can only say no and might just say YES

Charity trustee finance tool kit

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

All Trustees share ultimate responsibility for charity finances. In this respect, it is vital that they possess a clear view of the charity’s financial position at all times, regardless of their own financial background.

The Charity Commission has provided a “Finance Tool Kit” aimed at providing practical guidance for Trustees around charity financial management. 

Subjects specifically covered include

• Building financial security & resilience
• The importance of internal Financial Controls
• Reserves policies
• Improving the charity’s finances & financial effectiveness
• Collaborative working.

It is suggested that this easy-to-read guidance be shared with the members of your church governing body. 

The overriding emphasis on building financial resilience at a time of increased challenges, falling income and increased costs should be a priority for all church treasurers and trustees.

ACAT AGM and Annual Report

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

ACAT’s AGM will be held at this year’s conference on the 1 November. The AGM documents and Annual Report are now up on the website. Take a look for a snapshot of what’s been happening at ACAT over the past year, our successes, struggles, reflections and a glimpse of what’s to come.

The Annual Report is a great way to see how ACAT is growing and changing. All members should take a look to see either an overview or get into the details.

Try Praying

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

Managing church finances, ensuring good governance, and adequate resourcing of our mission and ministry development involves critical decision-making. 

Decision making, particularly in the realms of finance, is frequently, if not always, based on pragmatism. 

• What is the church’s likely income next year?
• By how much will costs increase?
• Will we balance the budget?

At this time of the year, when 2026 plans are being formulated and 2025 financial likely outturns are viewed with apprehension, the question arises, “Where does prayer fit in?” 

The subject of prayer and money can be a very difficult and potentially contentious area at both the personal and church finance levels. There are copious sources of advice on the subject.

The issue here is to what extent do we, as church treasurers, pray for the Holy Spirit’s guidance before we even begin to put estimates on spreadsheets or whatever means we use to compose our budgets?

Does prayer feature throughout the financial planning process? If not, why not?

An initiative by the Trypraying organisation is aimed essentially at those outside the church, encouraging them to “Try Praying” over a seven-day period. 

However, I suggest that the important principle underlying this challenge is equally relevant for us in our work as financial administrators.

“Prayer is a conversation with God.” We don’t need special words; we can talk to Him about anything.”

There are countless church testimonies of how God has provided for specific financial needs, when prayer has been placed front and centre.

So, as we begin our financial deliberations, why not Try Praying?

Hundreds of churches are part of networks offering ‘warm spaces’ to people.

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

Last winter a total of 485 Churches participated in the Warm Welcome Spaces campaign. This was a UK-wide network of more than 5,000 venues across the country including libraries and churches, offering a warm place for anybody in the community.

Approximately 400 Church of England churches were also part of the Places of Welcome network, coordinated by Church Urban Fund, all year round. Other denominations provided similar facilities.

It is anticipated that this valuable and essential ministry in our local communities will continue this winter.

That being the case it is vital that the following are considered by Church Trustees and Administrators before opening the doors.

• Safeguarding – Are the current church policies and procedures sufficient to accommodate vulnerable adults and young people, some of whom may be homeless and unfamiliar with church buildings and people?
• Does the church liability and property insurance cover warm space activities?
• Have adequate resources, people, finance and catering, etc been budgeted and planned for?
• Is any additional training required of church staff involved?

Protecting church IT systems

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

A Wake-Up Call

2025 has seen a significant increase in cyber-attacks on the IT systems of major organisations. Hackers have disabled systems critical to the running of those organisations and then demanded a ransom to re-instate them.

Jaguar Land Rover, M&S, the Co-op, and Heathrow check-in systems have all been targeted, resulting in significant financial losses and major disruption to life and business.

For charities, the wake-up call came recently when cyber criminals moved to a lower profile but more vulnerable target in the shape of a children’s nursery group.  The Charity sector and churches are particularly exposed due to a combination of perceived wealth and vulnerable systems with minimal security.

It may be only a matter of time before one of our churches falls prey to this crime. With our increasing reliance on IT, complacency around system security could be fatal. 

Consequences of cyber hacks

• Data loss and Breach: personal details of members stolen
• Financial loss, systems paralysed
• Financial assets vulnerable to theft (bank accounts)
• Reputational damage 
• Psychological effect on staff & volunteers

Protection                                                                                                                                    

• Staff & volunteer training – take IT security seriously
• Recognise potential threats (emails, scam calls etc)
• Strong passwords
• Two-factor authentication (2FA) for financial payments and other sensitive data, such as emails
• User IT policies & Financial systems (internet access & Online Banking )
• Ensure Data Protection policy is observed
• Insurance
• Prepare a Disaster Plan – how to deal with a threat to your church systems

The Maxim, “Cyber Complacency is Costly”, ACAT’s introduction to computer security course could be the answer. We have already run this course in our autumn term, but hope to run it again in the new year. If you’re interested, please keep an eye on our website and newsletters.

Interfaith dialogue in times of community tensions

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

A July article in the Guardian highlighted the significant rise in social tensions across the UK. A year on from the events in Southport, society has become more fragmented with a greater risk of internal and external threats. 

The article went on to express the view that “The UK is a ‘powder keg’ of social tensions, with a third of people rarely meeting anyone from different backgrounds.”

This preceded the horrific events in Manchester. 

Various global conflicts are impacting our local communities, particularly when differing cultural, ethnic and religious elements become involved. The continuing economic challenges simply add to the problems.

The question which arises is how we, as church leaders, respond particularly if our fellowships are in areas where there is a real risk of community unrest? 

Community unrest can ultimately impact our church life and ministry, sometimes with financial consequences.  So how do we respond? 

Prayer is a good start, but prayer combined with practical action is better. 

Interfaith dialogue aiming at understanding cultural differences has been a feature of UK community life for some time, but is this an area which, as Christians, for various theological reasons, we either shun completely or regard with extreme caution?

As a response to the Manchester synagogue attack, several interfaith initiatives have come forward with the aim of building bridges.

So, to what extent are our churches engaging in these initiatives, even if only to better understand our neighbours and, in doing so, demonstrate the change which Jesus can bring to our communities? 

Proving charitable status as an Excepted Charity

Q: I am treasurer for an Anglican church. When I took on the job in 2017 we had 2 small business accounts with Lloyds bank which incurred no bank charges.

Early this year we were informed that the accounts would be transferred to community accounts which do incur bank charges, unless we could claim to be registered, excepted or branches of a charity. I duly applied to be moved to charity accounts as my understanding is that the C of E is a charity registered with the charity commissioners for England and Wales.

Six months later, after several e-mails and several hours on the telephone, I have been informed that we cannot claim to use charity accounts as our name is not the same as that of (Diocese of) NNNN which apparently is recognised by the charity regulator?

Can you tell me if this is correct, and if you are aware of any banks that do not charge bank charges to local churches? Although the charges are relatively small, we as a church have been unable to meet the parish share requested for several years, and even small charges on a regular basis do mount up.

A: It is correct that you cannot use someone else’s Registered Charity Number. Your parish is a charity in its own right. You cannot use the name of your diocese nor any charity registered at Church House in London. I assume that you are an ‘excepted’ charity i.e. not registered. You can be an ‘excepted’ charity because you are an Anglican church as long as your income is at or below £100,000. This dispensation expires on 31st March 2031. If you require a certificate to prove that you are an Excepted charity, please look at your church’s webpage on A Church Near You.

For churches in other denominations, you may find a suitable letter on the denominational website. Baptist churches should contact Baptist House in Didcot.

Paying tax on interest received

Q: As a registered charity/church, we would like to clarify whether the interest we receive on our bank deposits is subject to tax. Could you kindly advise us on the applicable rules and any steps we may need to take to remain compliant?

A: Charities are exempt from many taxes provided that the income is used for charitable purposes. You will find more on these two links:

HMRC – Charities and tax – https://www.gov.uk/charities-and-tax Here is one sentence to confirm the situation:

“Charities do not pay tax on most types of income as long as they use the money for charitable purposes.”

Charity Tax Group [CTG] https://www.charitytaxgroup.org.uk/tax/income-corporate-taxes/investment-income/ Here is what CTG say:

“Other investment income

Other forms of investment income received by charities, such as interest income, income from authorised unit trusts and income from non-trading gains on intangible fixed assets are also exempt from tax, provided that the income is applied to charitable purposes.”

Paying people for church activities

Q: I’m now in my fourth month as a new treasurer and have a question about how best to make payments to two members of the parish. I am an ACAT member and have already attended the “Being a treasurer: The Basics” course which I found most helpful.

We make a quarterly payment to our organist and pay another member of the congregation to act as verger each time there is a large funeral (which typically occurs three or four times a year). That payment is made on the occasion of each funeral.

My concern is that by doing this we may be inadvertently making them employees which is not our intention. Neither person is obviously self employed. I am aware of the Employment status indicator tool from HMRC but have yet to try it out.

The payments are intended to be honoraria i.e. an acknowledgement of effort and contribution rather than a fee for services rendered.

1. Is it good practice to pay an honorarium in this context?

2. If so what is the best way of making it clear that the payments are honoraria?

3. If an honorarium is not appropriate are the only available options to use employed or self employed status?

A: Well done for taking on the role of treasurer and thank you for attending our Basics course and I am pleased to hear that you found it helpful. We can’t cover everything so I am glad that you have asked about these payments.

The writer finds the term ‘honorarium’ (plural ‘honoraria’) is often used in a misleading way. The Football Association on TheFA.com have a helpful take on this: “The myth here is that honoraria are free from any tax implications which is not the case. Honoraria should be subject to tax and national insurance (subject to the individuals’ circumstances). To administer this, the easiest way is to run a payroll scheme which I’m conscious brings an additional burden to league administration.”

There are four categories to consider (to save space, briefly):

Volunteers

Payments to volunteers are a ‘no no’. This is what HMRC say about the matter https://www.gov.uk/volunteering/pay-and-expenses

“Pay and expenses

You are not paid for your time as a volunteer, but you may get money to cover expenses. This is usually limited to food, drink, travel or any equipment you need to buy.

You may need to pay tax on your driving expenses if you get back more than you spent.

You might be classed as an employee or worker rather than a volunteer if you get any other payment, reward or benefit in kind. This includes any promise of a contract or paid work in the future.

You get certain employment rights if you’re classed as an employee or worker, like getting the minimum wage.”

You can also read more in our online handbook Chapter 8 Employment Issues; Section 10 PAYE and National Insurance; paragraph f: Volunteers. *login required

Employee or self-employed?

Before looking at each category separately, we must consider the differences. There is a helpful information in our online handbook Chapter 8 Employment Issues; Section 3 Employed or self-employed? *login required The enquirer mentions the HMRC employment indicator tool – this is found here https://www.gov.uk/guidance/check-employment-status-for-tax – please scroll to the bottom of the webpage. The decision as to whether the third party is an employee or self-employed must be up to the church, obviously in conjunction with the person (people) involved.

Employees

All employment related payments (except the reimbursement of direct expenses) such as any bonuses or overtime must be included in payroll.

Space does not permit mention of all the various employment issues e.g. written statements required on Day 1, Contracts of Employment, discrimination matters, National Minimum Wage/National Living Wage, pensions auto-enrolment, Health & Safety, etc, etc.

Self-employed

If the person is a ‘contractor’, then there should be a ‘contract for services’ between the church and the self-employed person(s). The self-employed person should register with HMRC and submit an invoice to the church. The church should not pay a self-employed person before receiving an invoice. It is up to the self-employed person to submit tax returns – a de minimis threshold may apply at fiscal year-end but the self-employed person will need to study the guidance and seek advice as necessary: https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Visiting preachers

By custom and long-established practice, fees paid to visiting preachers (sometimes called ‘honoraria’) are taxable in the recipient’s hands – not that of the church. Usually what is given to the preacher will include something for travel expenses. The preacher can determine his or her expenses as part of their tax return.

It is best practice to talk through how the fees are going to be paid with the preacher – rather than just passing across a cheque. Nowadays, most folk will ask for bank details anyway. If a preacher is representing (or employed by) a Diocese or a denomination or a mission organisation, then they may well request that their fees and expenses be passed to the body that they represent.

Conclusion

The writer recognises that this is a very brief overview. If you have any questions or would like more information, please submit a contact form on our website.

ACIE UK-Wide Online Conference

Thursday 13 November early bookings are open

Speakers include.

• Amie Woods, The Charity Commission
• Rhona Delaney, Brodies, Mergers
• Carolyn Gee, Evelyn, Reserves
• James Stebbings & David Hawes, Institute of Legacy Management, Legacies.
• Charles Mesquita, Quilter Cheviot, Investment Management

easyfundraising

Raise free funds for your church this autumn

Over £3 million in free funding is expected to be raised through easyfundraising this season.

If your church is registered, you can benefit when your congregation and supporters shop online with retailers like Tesco, eBay, Etsy, Argos, and many more. Retailers donate a portion of what’s spent—at no cost to your church or its members.

With Christmas shopping around the corner, it’s a practical time to get started. Many churches find it’s one of the easiest ways to raise additional funds without asking for extra giving.

Register your church here: https://www.easyfundraising.org.uk/acat

You’ll receive a free support call and toolkit to help you engage your congregation and start raising funds.

Find out more.

• ACAT Conference 2025
  • Date: Saturday 1 November
  • Time: 10 AM – 4.30 PM
• Trustee Training for Churches – 2 session course
  • Date: Saturday 22 November, 6 December
  • Time: 10 AM – 12 Noon
• Accruals Accounting – Accounts for Larger Churches – 2 session course
  • Date: Saturday 22 November, 6 December
  • Time: 2 PM – 4 PM
• Gift Aid: Maximising the benefits and reducing the pitfalls
  • Date: Monday 24 November
  • Time: 6.45 PM – 8.45 PM
• Preparing for an Independent Examination
  • Date: Monday 8 December
  • Time: 7 PM – 8 PM

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 in November and December are available for booking.

Did you know?

You can not only manage your own newsletter subscription, but also update your details directly from your profile page. Just click your name in the top right corner after logging in to the website.

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.