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Village hall charitable status

10 replies

FabulouslyFab · 27/07/2022 06:46

The parish council closed down the village hall as they couldn’t afford repairs. It has been handed back to the landlord. The committee all stood down.
There is money in the bank account. The bank won’t transfer it to the parish council as the village hall was a registered charity. The parish council want the village hall committee chair (stood down) to close the charity so they can get the funds. Surely this is impossible? What will happen to the funds?
Any advice please?

OP posts:
ivykaty44 · 27/07/2022 06:49

The bank are making these decisions? What durastriction are the bank using to decide what happens?

Igmum · 27/07/2022 07:05

I don't think the bank has a choice. If this is a charity it is a separate legal entity run by the trustees. I'm assuming it is those trustees who will wind this charity up, but hopefully someone will be along shortly who actually knows because IANAL.

happystory · 27/07/2022 07:19

No expert, but it's my understanding that if a charity closes down, any remaining funds have to be donated to a comparable charity. Someone needs to contact the Charity Commission.

LIZS · 27/07/2022 07:33

Agree it is up to the cc not the bank.

FabulouslyFab · 27/07/2022 07:41

Thank you ! Any advice will be passed on and looked at.

OP posts:
briancormorant · 27/07/2022 07:46

If there are Trustees, it is their responsibility.
They need to check original documents to see if closing down procedure is described. If Yes follow that.
If not described, check with Charity Commission for their advice. As a pp upthread says it is usual to donate to a similar organisation.
Failing that it goes to the Exchequer.
Local Council must keep their hands off!!

screamernumber2 · 27/07/2022 08:27

www.gov.uk/guidance/how-to-close-a-charity

prh47bridge · 27/07/2022 09:31

ivykaty44 · 27/07/2022 06:49

The bank are making these decisions? What durastriction are the bank using to decide what happens?

It is absolutely their right to do so. The money in the account belongs to the charity. The Parish Council cannot simply take it. The bank would be acting illegally if they transferred the money to the Parish Council without proper authorisation from the charity.

As others have said, if the charity closes, the trustees must dispose of any remaining funds appropriately. Any unspent grant money may need to be returned. Any donations given for a specific purpose may need to be returned. Any remaining assets must be used for the charity's purposes, which usually means giving it to another charity with similar objects. It is highly unlikely that the assets would go to the Parish Council.

shamoola · 27/07/2022 09:42

Also to add to what @prh47bridge says the trustees cannot just step down - they need to read the dissolution clause in the charity's governing document and follow that.

Does the charity own the building? As that will complicate things.

FabulouslyFab · 27/07/2022 12:12

This is great - thank you.
The building was rented for a nominal amount and has now been handed back to the landlord/land owner.
To clarify we were the village hall committee that tried so very hard to keep it going. The parish council are being ruled by a mini dictator who is making life very difficult just now. The hall has been closed since before COVID.
(Hello to anyone who recognises this story! 👍)

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