parish charity

Question

we are as councillors trustees of a small parsih charity that recieves rent of £2 a year for 40 years the bank account was closed years ago and not at all easy to get a bank account now and fees are £6per month  new lease to be signed so we can allow them to pay the £80 in cash up front we are consideringing giving them a signed reciept  and that same day donate back to the tenants who are also a charity again with a reciept all done same day
last year auditor wanted the £ rent removing from councill account which was done so now in cash i appreciate its not ideal but cant think of any other pragmatic approach at lease this way a local charity gets the money rather than the bank in charges  any Thoughts or alternatives

Answer 1

What were the two charities set up to do? The auditor was correct that the charity money should be kept separate from the council's accounts. Is someone submitting returns to the Charity Commission on behalf of the parish charity? If you donate the money back to the other charity, is there any need for the parish charity, or could you consider deregistration? Is there land or buildings involved here? So many questions!

Comments

one to own the village hall to be let for the benefit of residents it was de registered 14 years ago as income is just £2 per annum ie nominal pepercorn rent
yes parish charity owns a very small  paddock to be let on commercial terms   and village hall to be let at pepercorn for 40 years both charities have objectvive of benefiting residents with social activities
so in my eyes donating back is in compliance with those objectives  and by doing so and recording it as a cash transaction is pragmatic

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When you say it was deregistered, do you mean that the organisation was wound up? If a new lease is to be signed, have you considered removing the requirement to pay rent? A peppercorn rent can literally be paid as a peppercorn, rather than money. You would need to check the governing documents of the charities to ensure that you do nothing in contravention of their rules.