Amalgamation of Haddenham Charities

Published: 02 March 2022

Haddenham Parish Council is proposing to merge several local charities for which it is either the sole trustee or is responsible for appointing the board of trustees.

Which charities are being considered for amalgamation?

Haddenham Parochial Charities:

The Reverend John Willis Charity, Charity No. 205529.
The charity owns the land at the allotments on Townside which is held by the Official Custodian. The allotment site is leased to Haddenham Parish Council and the income for the charity is annual ground rent.
Alms Corn Charity, Charity No. 237625
The income of this charity comes from 2 local land owners who are required to make a donation to the charity each year calculated on the basis of the value of corn.
Joseph Franklin Charity, Charity No. 204185
The income of this charity is from an investment fund.

The three Parochial Charities are currently managed together by a board of trustees appointed by the Parish Council. The income from the Parochial Charities is distributed to those in need who apply for a grant in December each year.

Haddenham Educational Charity

Charity No. 301589. Haddenham Parish Council is the sole managing trustee. The income from this charity is from an investment fund set up by the sale of the Old British School and is used to award small grants to those who need help with the costs associated with education. .

Banks Park Recreation Ground Charity

Charity No.300272. Haddenham Parish Council is the sole managing trustee. The charity owns the land at Banks Park. The income comes from the ground rent paid by the individual properties on the site. The income is used to maintain the shared areas of Banks Park, the Village Hall, Banks Cottage and any surplus can be used at Woodways Recreation Ground.

Why are we considering amalgamating the charities?

There are several reasons:

To reduce the administrative burden, particularly for the four smaller charities which have a very small annual income.
To modernize the charities’ aims, operations and governance to better serve our local community.
To ensure the charities' future due to difficulty recruiting trustees for the Parochial Charities.

Proposed structure of the new charity

The new charity would be set up as a Charitable Incorporated Organisation (CIO). This is a newer arrangement where the law considers the charity in the same way as an individual and means the trustees are not personally liable. The new CIO would be able to employ paid staff, deliver charitable services under contractual agreements, enter into commercial contracts in its own name and own freehold or leasehold land or other property.
The assets of the individual charities would be transferred to the new charity.

The new charity scheme

The new charity will have a broad constitution that will incorporate all of the same aims as the original charities:

To provide financial support to those in need with food and fuel during the winter months.
To provide financial support with vocational or educational expenses.
To own land at Townside to be protected for use as allotments in the village.
To own and manage the land and leased properties at Banks Park.

What does this involve?

The process is complicated and lengthy. Now that the trustees of each charity have met and agreed in principle to the amalgamation, the following steps are involved:

The valuation of the land and properties at Banks Park and the allotment site by a specialist surveyor to ensure that any new arrangements do not disadvantage those charities.
Working with a solicitor with expertise in charity law to advise and liaise with the Charity Commission to make sure the correct legal procedures are followed.
Engagement with stakeholders to seek their views on the proposal.
Agreement of a constitution for the new charity.
Working with the Charity Commission to set up the new charity and appoint trustees.
Transfer of assets and winding up of existing charities.
Updated leases for all properties.