In part one, we looked at the reporting obligations of charities. In this article we will look at the obligations a registered charity has when certain changes are being made.
Notifying Charities Services
A charity must notify Charities Services of the following changes:
– Charity name
– Address for service
– Change in the officers (including when an officer is disqualified)
– Balance date
– Rules (ie under the trust deed, constitution or charter)
– Purpose of the charity
– The legal entity type of the charity
A charity must notify Charities Services of such changes no later than three months after:
– the changes take place; or
– the charity becomes aware of the change (whichever is later).
Notifying the Companies Office
Your charity also has an obligation to notify the Companies Office of certain changes. Changes that incur this obligation can be categorised as either ‘administrative’ or ‘substantial’.
Administrative changes include changes concerning officers, changes in procedures relating to appointments, resignations, meetings, and changes to the powers of a board. You can make such changes by completing this form, or logging into your account and notifying them online. You will be required to attach a copy of the requisite alteration(s) or resolution.
Substantial changes are more significant changes that involve trust property, also known as a ‘variation’ of the trust. Such changes have the same notification requirements as an administrative change (above) but must also be accompanied by a statutory declaration. Additionally, the variation must be certified as a correct copy by one of the trustees, or a member of the committee or governing body of the society.
A charity must notify the Companies Office of any administrative or substantial changes within one month of adoption of the alteration. Of note is that a charity does not have an obligation to notify the Companies Office of the addition or resignation of trustees.
These key obligations are just a few of the ongoing obligations charities should comply with. Charities should also ensure they operate in accordance with their own rules, the Charities Act 2005, and other relevant legislation.