Share Magazine 38 | Stewardship by Stewardship

the stewardship magazine | issue 38

GETTING THINGS DONE Starting charities, raising funds and the power of cooperation

transforming generosity

FEATURING: John and Dorothy Davies Bramber Bakehouse John Rinehart Olivia Barker Pete Wynter Gold accounts v private trusts

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We’re Stewardship. We’ve been helping the UK Christian community to give and to receive since 1906, when we started out as stewards of church properties around the country. We love making giving easy and each year help over 25,000 individuals to give around £72 million to our database of over 19,000 charitable causes. By offering practical, tailored support, we are committed to strengthening the work of churches and Christian charities.

And we also inspire greater generosity from this community, thanks to our wealth of resources, courses and campaigns for individuals and churches alike, including the award-winning 40acts. For more than a century we have been driven by our desire to give the wider world the opportunity to encounter Jesus through the generosity of His people and the transformational work of the causes they support. We are Stewardship, and this is what we are about.

Contact us 1 Lamb’s Passage London EC1Y 8AB Tel: 020 8502 5600 Email: enquiries@stewardship.org.uk Web: stewardship.org.uk You can contact the editor by emailing editor@stewardship.org.uk Editor: Craig Borlase Design: adeptdesign.co.uk Stewardship is the operating name of Stewardship Services (UKET) Limited, a registered charity in England and Wales no. 234714 and a company limited by guarantee no. 90305

Editorial When Stewardship returned to London in 2014 one of the many exciting aspects of our move was the opportunity to share our office with other churches and Christian charities. We wanted to make our space available – free of charge during business hours – to serve others. Many Christian charities don't have a presence in London, and when it's possible, we're happy to provide hospitality. It isn't always convenient, and it isn't always easy, but the staff have embraced it as an opportunity to serve. To be clear, London isn't the centre of spiritual life in Britain, but it is a place of extraordinary influence on both the UK and the world. It desperately needs the influence of Christian churches, charities and individuals. But this is not unique to London. All our cities, towns and villages need the gospel. They all need Christians to play their part and be radically generous. John and Dorothy (page 10) are great examples. In the last 30 years they have helped 70 Christian workers buy homes in the areas of their

ministry. Bernadette’s (page 30) passion for generosity extends to helping churches maximise their property for Kingdom impact through her family business. Olivia (page 18) is restoring hope to children in poverty and Pete (page 18) is training the next generation of leaders, but where will they live? Churches and charities in London, Edinburgh, Oxford, Cambridge already report tremendous challenges attracting and retaining staff and housing the central problem. We all have a role to play. The question is whether we are prepared to play it fully, without reservation, embracing the inconvenience and cost that comes with it. Imagine what might happen if we were all radically generous… If you want to tell us about the ways that you feel inspired to give and serve, email us at radical@stewardship.org.uk Michael O'Neill, CEO Stewardship

Like what you read? Use your Stewardship account to lend your support 3

News in brief Acting up Now in its eighth year, over 100,000 people signed up to our most recent Lent generosity challenge. On Day 5, the act entitled ‘Captive’ struck a chord with many. This act encouraged readers to connect with prisoners, sparking an unprecedented amount of interest. We were overwhelmed with stories from those who had been in prison or had family members serving custodial sentences, and who hugely appreciated the inclusion of this act. The Prison Hope website saw a huge spike in hits that day with 10,000 visitors in a 24-hour period. Do you want to be a 40activist for 2018? Visit 40acts.org.uk or check us out on Facebook, Twitter and Instagram. 40acts 2018 starts on 14th February #40acts

Movement Day

DO YOU WANT TO SEE YOUR TOWN OR CITY TRANSFORMED?

Stewardship were delighted to be one of the partners for Movement Day at Methodist Central Hall on 6th-7th October 2017. Over 1,000 people including church leaders, MPs and representatives from the worlds of health, business, arts, fashion, media and education met together to encourage each other and shape and unify their communities for the future. Speakers included Krish Kandiah, Chine McDonald, Ram Gidoomal and Elaine Storkey. Steve Clifford, general director of the Evangelical Alliance, said: “I came away from Movement Day tremendously encouraged by what God is doing in our towns and cities. For us at the EA, Movement Day represented an answer to so many prayers and provided us with the fresh challenge of building on what was achieved in our short time together.” Keep up to date by following #movementdayuk

Features 6

Stewardship in action: Charity formation

The upside down world of John and Dorothy Davies

Room with a view When we moved back to the City in 2014, one of our first acts was to open up our premises to other Christian organisations. Since then, almost 100 organisations have taken us up on our offer of shared meeting rooms and facilities. We’ve built great relationships with others, been inspired, and in reaching out, we have been hugely blessed by being connected to the frontline of the work we support. It’s great to get feedback like this from a recent visitor, New Family Connections: “Thank you for letting us come to the Stewardship office for the NFC trustees’ meeting. We were most impressed by the premises and their facilities. The room was comfortable and there was an abundant supply of coffee and hot water for tea. The welcome we received from Barrie was warm and he attended to us courteously and efficiently.”

Making a difference with give.net

Legal and financial

Consultancy helpline

Why I give: Bernadette Cunningham

STEWARDSHIP IN ACTION

Size isn’t everything. To prove the point we’re taking a look at the work of the Charity Formation team at Stewardship. Numbering only three, they are clearly punching above their weight, helping to set up around 70 charities a year. We caught up with three of their many satisfied customers.

ollin Preston and Lucy Butt co-founded Bramber Bakehouse nearly four years ago, working with previously exploited women, offering internships, support and a second chance at life.

H O 6

CY LU

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ES TO

BU TT

Hollin and Lucy had struggled with charity formation as their first attempt was rejected by the Charity Commission. “We were a bit stumped, to be honest,” says Hollin. “We were told that our cause was not charitable enough. An employment lawyer friend of ours helped us with our articles and charitable premises, but still it was a no-go. We had to put it on the back burner for a while, but it was disappointing, as the Charity Commission didn’t seem to understand our vision.”

Through their work at the Evangelical Alliance, Tearfund and Spring Harvest, Hollin and her husband already knew of Stewardship by reputation. Once Hollin picked up the phone to the Charity Formation team, things really started to move. “As soon as we explained our premise to the team, they knew exactly what we were talking about. That in itself was brilliant! The other thing we loved about the process is that we have a great personal working relationship. When we ring up, they know it’s us immediately. With the best will in the world, you get in touch with the Charity Commission and it’s a different person every time. You don’t have that personal interaction.” Everyone on the Bramber Bakehouse team works or has families, so they run the charity in their spare time, a commodity in very short supply. Again, Charity Formation came up trumps. “We had loads of questions about tax, charitable premises, income and so on. Stewardship are phenomenal! One phone call

(usually made in the lunch break!) sorted it all out and freed us up to do the work. The team always got back to us quickly and appreciated that we are short on time. We loved the way they gave us a free year’s membership [to Stewardship’s Consultancy Helpline] with the dedicated number to call and so much professional support.” The team have made a significant difference, as Hollin explains: “We wouldn’t be a charity without Stewardship. In terms of cost and good value for money, they are streets ahead. We trust them completely and knowing that they have such a good reputation is the icing on the cake. We’ve recommended Stewardship already several times and will continue to do so.”

Bramber Bakehouse 20212056 7

The team were 100% for me and wanted to see my desires come to fruition.

JOHN RINEHART

ohn Rinehart, founder of evangelical charity Gospel Patrons experienced the same great Stewardship service but for different reasons. “I wanted to expand our ministry into the UK and set up as a charity to formalise it so we could serve UK churches in a more sustainable way. We were already all set up in America – I had no idea that there would be so many hurdles and so much bureaucracy when we tried to form our charity in the UK.” The Charity Formation team were on hand to prepare John for what to expect, advising and supporting with the many issues he faced. “The team were 100% for me and wanted to see my desires come to fruition. They were so joyful, patient and helpful which was just as well as we had to jump through so many hoops!” Like Hollin, John is a massive fan of the Stewardship team. “Gospel Patrons is all about advancing God’s kingdom, leveraging 8

business and spiritual leaders to come through to do great things for the Lord. Stewardship have given us a platform to do that in the UK, laying a foundation for future work. The Charity Formation team cheered us on throughout – they have made a huge difference.” Charity Formation is just one of the services we offer at Stewardship. When Thrive Church UK needed help with relaunching their church, they turned to us, initially working with our Charity Formation team. Find out more about our Charity Formation service by visiting stewardship.org.uk/charityformation

Gospel Patrons 20197807

aving worked with Stewardship’s Charity Formation team, Lee Button, one of the leadership team at Thrive Church in Eastleigh, Hampshire, realised that there were many other services which would be of use to them as they relaunched. “We received the benefit of the free Consultancy Helpline for 12 months which was brilliant. We then took advantage of the Church Recipient Account to receive Gift-Aided donations which is working very well for us. We’ve also encouraged our church members to set up Giving Accounts and we’ve organised online giving and fundraising through give.net.” One of the things that Lee and the team at Thrive love about working with Stewardship is the personal connection. “John Keskeys (Stewardship’s Client Relationship Manager) and his team met with us and they were worth their weight in gold. Not that we needed convincing at that point, but we felt more than ever that we weren’t getting some kind of cookie-cutter service, but personal support, tailored to our needs.” Encouraged by the professionalism and expert knowledge at Stewardship, Lee and the team went on to purchase their Policy Templates and Risk Assessment Toolkit and are now working with the Payroll Bureau for their staff wages. And that’s not all. “When we get to our end of year accounts, we’ll be using Stewardship’s Accounts Examination Service.”

We felt more than ever that we weren’t getting some kind of cookie-cutter service, but personal support, tailored to our needs. Thrive Church UK are excited about the next stage of their journey, partnered by Stewardship and their professional services. “We would recommend Stewardship to any church or charity looking to expand or rebrand,” says Lee. “Stewardship is a one-stop shop.” Find out about how Stewardship can help your church plant by visiting stewardship.org.uk/churchplanting

Thrive Church 20220036 9

THE UPSIDE

WORLD

Eight years have passed since we introduced readers to Dr John and Dorothy Davies. He’s 85 now, she’s 90. In the Stewardship office, we still all want to be like them when we grow up.

of John and Dorothy Davies

Words: Craig Borlase Photography: Jez Godlonton www.jezphotography.com

DOWN

here is a well-established route that retired couples are expected to take. Stop working. Prune back commitments. Take up a hobby. Move somewhere quiet. When it came time to put into action their own retirement plans, John and Dorothy did precisely none of these. Instead of taking it easy, the couple left the comforts of Frintonon-Sea and moved west, relocating to a block of flats in Bethnal Green. Their decision has its roots in the 1970s. Returning to the UK after a decade serving in Nepal and India, John and Dorothy saw the need for Christian workers in London and wanted to move there. However, with no capital and no proof of income their plans stalled. “We moved to Frinton-on-Sea,” says John, “where I was blessed to be able to establish a Christian medical practice. This provided us with a serious income to direct our giving, much of it related to London where our hearts were still set.”

Instead of putting the disappointing experience of being priced out of the London market behind them, they continued to pray and act. They joined with other like-minded friends to help Christian workers get onto the housing ladder. And when they met the chairman of a Christian housing association and asked to help, they received the encouragement and support that they and their friends needed to establish their own housing association. And so, in 1998 they formed the Affordable Christian Housing Association Limited (ACHAL) with a vision to secure affordable accommodation for Christian workers in London who would otherwise be priced out. In time they merged with another housing association and formed Mission Housing, and in the last thirty years have helped seventy key Christian workers obtain homes in the vicinity of their outreach.

THEY HAVE HELPED SEVENTY KEY CHRISTIAN WORKERS OBTAIN HOMES IN THE VICINITY OF OUTREACH. THEIR

In 2002 they retired, sold up and made the counter-cultural move from the tranquillity of the English coast to the urban challenge of Bethnal Green. “If you want to do more than just give,” says Dorothy, “if you want to be envisioned then it is good to be — if at all possible — among the people you have a heart to support.” Since moving, Mission Housing has continued to develop and John and Dorothy have devoted themselves to the ministry of prayer, hospitality, local community and church. 14

John explained that they used to pray with a lady who had been working in the East End for thirty years and was ready to retire and move but wanted to do something to ensure a Christian witness in her area. She had a two-bedroom flat that was worth £350,000. “No Christian worker could ever begin to think of buying a property at that price so she reduced her asking price to £200,000. A more than 40% drop! We introduced her to a Christian worker who wanted to buy in the area and Mission Housing organised the mortgage. Then a couple of friends put in £20,000!”

IF YOU COOPERATE YOU GET

THINGS DONE.

John’s spirit is infectious, and his faithful logic seems flawless: “If you cooperate you get things done. That’s been our experience over the years. We haven’t accomplished anything. It is God who has enabled us and we have united with others who share a similar vision.” Living in a block of twenty-five flats in the East End, the couple have plenty of opportunities to interact with neighbours and follow God’s lead, as John explains. “I say to people if they want to throw anything away they should leave it by the bins and I will take it to the charity shop or dispose of it appropriately. Not long ago I saw a pair of hardly worn brogue boots. They were beautiful and I saw they had a label inside that said ‘Handmade in Italy’. I polished them, and when a Christian friend of ours called to see how we were getting on, I asked him if he was interested in a pair of shoes. Showing the splits in his own he said that he was just about to go and buy a new pair. They fitted him perfectly and he was thrilled at God’s provision.”

“Two days later he phoned and asked how much I thought they were worth. I guessed about a couple of hundred pounds. He told me they were worth £1,250. People dispose of things that may be of great value and of real use to others in need. It stokes my boiler every time something like that happens because I know God is in it. Sometimes he works in big things and he works in practical and personal ways.”

Things have changed a lot over the years. Mission Housing has grown, and agreements have been signed, houses have become homes and loans repaid. “We love revolving capital,” says Dorothy. “It comes back and gets used again!” The couple’s outlook has changed too (John says he’s less dogmatic these days), and the sense of urgency about their work has grown. “We believe in London,” says Dorothy. “We’re like the little boy putting his finger in the hole in the dyke. We’re trying to stop the haemorrhage of people leaving because they can’t afford to live here,” says John. Yet they have seen enough to know that what often appears to us as a crisis is frequently a precursor to God mobilising His people to act. “When I was a child in Sunday School,” says John, “I was greatly influenced by a very wealthy lady who was obsessed by mission. I was very sad to learn that when she died she had not left a will and her wealth went to the government. Stewardship will look after our affairs and distribute 10% to those that we’ve nominated.”

After a lifetime of giving, they remain just as committed to generosity as ever. John and Dorothy have more than put their money where their mouth is. Yet they never feel as though they have ‘suffered loss’, but have been abundantly blessed in their efforts in seeing God’s kingdom grow. Welcome to the world of Dr John and Dorothy Davies – the couple who were missionaries in Nepal, retired to London, and now enjoy a rich and fulfilled retirement with a continued vigour that inspires. 16

WE BELIEVE IN

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LONDON

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I came home and spoke to different charities and churches in the UK about conditions back in Uganda, but couldn’t really find anyone to help. Because the slums are dangerous and technically illegal settlements, none of the big aid organisations work within them as they don’t have government permission. I returned to Uganda in the summer following my first year at university, not with any plan, but just because I missed it and wanted to go back. If anything the poverty had got worse. I spent a lot of time talking with my friends there, praying and crying. I was just 18 and didn’t really have a clue what I was doing, but I felt the Lord say, “There’s no-one else doing anything, so why don’t you do something?” Kids Club Kampala started small, working in two slum communities, doing games, songs and Bible teaching. Now we’re working in 20 slum communities, and every Saturday we have 70 local Ugandan volunteers who run the kids clubs, doing games, Bible stories, songs, sport and music. We feed the kids and offer free education to 500 children who come along to our classrooms and learn every day. There’s a feeding project that runs alongside, as well as income-generating projects working with women, teaching them crafts, and vocational workshops for men. We also have a project working with children who’ve been abandoned, orphaned or separated, and we have a children’s home where they can come and stay. Our aim is to get children resettled back with family members, whether that’s parents or grandparents or an extended relative, rather than leaving them in an institution.

A lot has happened over the last eight years. It started off with just me in my spare time, now we have two members of staff in the UK and 28 local staff in Uganda, as well as 70 volunteers. It’s having a big impact, and lots of lives are being changed. Finances have been challenging too, and we’ve been really badly affected by the exchange rate following the Brexit vote. Give.net has helped a lot in two main ways. First, by making it easy for people to give. We have a donate button on our website and regularly post the donate link on our emails, newsletters and social media. It’s so much easier than asking people to post a cheque or make an online BACS transfer. All they have to do is click on the button and make a gift, whether it’s regular or one-off.

The second way is with fundraising. If people are doing a marathon, a sponsored cycle ride or an event, it’s easy for them to set up a page and share it on their social media sites. We created a fundraising pack that we can send to anyone interested in fundraising for us, and it’s full of tips, hints and a step-by-step guide to setting up a Give.net fundraising page.

One of the main reasons we chose Give.net is because we really liked Stewardship’s ethos and what it stands for. With other big platforms you’re not quite sure where they invest their money, and Stewardship being a Christian organisation felt like a good fit. The fees are fairly low, which is good, and I really like the reporting as it’s so easy to log in, find out who’s donated and get their info to send them a thank you. Last week, out of nowhere, we had an anonymous donation on Give.net for £3,500 – the biggest anonymous donation we’ve ever received. Sometimes when you get an anonymous donation you kind of know who it is, but in this case I really don’t have a clue. It could have been a random person who didn’t know us at all and just stumbled across our Give.net page. And it came at the perfect time as well.

Kids Club Kampala give.net/kidsclubkampala 22

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d of out of a perio nelife was born ndrew â&#x20AC;&#x2122;s A ministry at St growing youth seen g ywood. Havin Church, Chorle , od G r unte g people enco g so many youn in pp equi our vision for we developed le to become op pe g g youn of society. and connectin in ever y sphere s er ad le l na exceptio o with a lot t ten years ag os m al ed ch dreams. We laun pe and a lot of ho of t lo a n, of passio learned. lot of skill to be We also had a

One of those areas, in particular, where we had a lot to learn was fundraising. We realised that in order to be able to fulfil the passion, vision and calling that inspired us, we would need to put a lot of effort into fundraising. That was an interesting journey for me.

Getting to this place was a journey, and I found Henri Nouwen’s book A Spirituality of Fundraising really inspiring. It helped me to see giving as being part of our discipleship, a means of stewarding resources God gave us. In time we started to gather momentum and do more to fundraise.

There was an initial wave of generosity around the launch. Everyone could see there was something interesting that was happening and some of the parents got behind it. But after those early days it became clear that even though I was a passionate youth worker with what seemed like a God idea, I had to engage people in telling that story so that they might help and support us. That was a quick wake-up call. I was just excited about training and raising young leaders, and initially I found it really hard asking people for money.

We have used Give.net in different ways. It makes it simple and easy for people to give online to Onelife, and the fact that it’s so accessible is really helpful.

That changed with time. The more we saw young people’s lives get transformed, the more passionate we became about the vision. That’s when it became easier to ask people to support us. It was clear that when someone was giving money they were enabling significant change in people’s lives.

While we try to engage donors and churches to give to the mission of what we’re doing, we also want to engage the teenagers in raising sponsorship and being generous themselves. So every year we’ve run something called the Onelife challenge, a sponsored event that might be the Three Peaks one year, to walking across London at night the next. People have been able to use Give.net as an easy way to fundraise, whether they’re raising small amounts of £5 here and there or bigger chunks. Give.net works for all.

there’s been I feel as though tionship as a personal relahe values of well. You feel t ing through. Stewardship com

I love that I feel as though there’s been a personal relationship as well. You feel the values of Stewardship coming through. They can speak and teach into the subject of generosity from a Christian perspective. A lot of that has been really helpful and we feel like we’re all pulling in the same direction. There’s a sense that instead of just being a functional tool to help us raise finance, they are backing our desire to be generous, and they understand the purpose behind that. So today we work all over the UK, from Aberdeen down to Cornwall. We work in different contexts supporting local churches and organisations, and helping to develop and raise young leaders in whatever way we can. We focus on 14 to 21-year-olds and we put on a mix of conferences (in England and Scotland) and Onelife One-Days – one-day training events around the country. We also host a longer, more in-depth residential school of leadership for 17 to 22-year-olds.

Onelife have been developing a number of new resources, including a new website, and are about to release a course that churches can run with teenagers and students to encourage them to think about issues around character, values and the heart of a Christian leader. We want to help people think through what it means to be a distinctively Christian leader. Whether that’s expressed in politics, arts, education or the media, it’s not just about becoming a church leader. We want to help Christians to engage wherever God calls them to be.

Onelife give.net/onelifeleadership 25

Legal & financial

WHY IS A STEWARDSHIP GOLD ACCOUNT BETTER THAN A PRIVATE CHARITABLE TRUST? I was recently asked this in relation to a family charitable trust worth under ÂŁ5 million. It is a common question asked by families where the trustees are either getting too old or are too busy to shoulder the administrative burden of their charitable giving. The simple alternative and answer to these problems may be a Stewardship Gold Account. 26

So, what are the ‘administrative burdens’ of a family charitable trust? Typically, a trust needs to:

So, what is a Stewardship Gold Account and how can it help simplify your family’s charitable giving?

c appoint a suitable number of trustees, and

Essentially, the account, more frequently referred to by professional advisers as a ‘Donor Advised Fund (DAF)’, functions in the same way as a charitable trust but without any of the hassle!

replace them as existing trustees retire. c hold trustees’ meetings as often as is

required, to run the trust well. c keep minutes and record the reasoning

behind key decisions, such as grant making, especially where this involves making grants to individuals such as missionaries, Christian workers and others in need. c open and maintain a suitable bank

account. c keep accounting records. c prepare an annual trustees’ report

and accounts. c in most cases, complete an (ever

changing) annual return to the relevant charity regulator. c submit the report and accounts, and

annual return to the Charity Commission, OSCR or CCNI. As the activities of a trust are governed by charity law and in most cases, HMRC, in respect of relevant charity tax reliefs such as Gift Aid, the trustees need to take their role seriously. And this means getting things right legally. If tax relief is claimed, it is possible that HMRC may wish to carry out a compliance audit. So, all of the trust’s records need to be maintained in good order. At the time of writing, we are awaiting HMRC guidance on a new requirement for trusts to register with HMRC and keep their register entry up to date. This obligation arises under new 2017 Money Laundering etc. regulations.

Kevin Russell, Technical Director

Account users can fund their account in a number of tax effective ways such as Gift Aid, gifts of shares or property, by Will, or via a Deed of Variation to a Will. And an ‘Expression of Wishes’ can be attached to the account detailing how you would like funds to be distributed after death of the account holder(s). Since the account is a discrete fund within Stewardship, it is our trustees that are responsible for all of the accounting and administration, and for answering to the regulators. In addition, we carry out suitable due diligence on each of our recipients giving you peace of mind that there will not be any comeback later. Like our other giving accounts, you can ask us to make gifts from the account to missionaries and other Christian workers, to Bible college students and to Christian and other charities. And with a very strong balance sheet, comprehensive financial controls, and over 110 years in existence we are justly proud of all that the Gold Account has to offer. Put like that, for some, switching their family trust into a Gold Account will be a ‘no brainer’. We presently serve over 1,200 individual and corporate Gold Account holders and this is growing quickly. To find out more, please visit stewardship.org.uk/gold or call the gold team on 020 8418 8896.

@KevnRussell

For the very latest news, subscribe to our free Sharpen email bulletin by visiting our website stewardship.org.uk You can also check out our Blog and Events pages for technical updates on law, accounting and tax stewardship.org.uk/blog and /events

Ask Steve Professional advice for churches and charities Stephen Mathews heads up the Stewardship consultancy helpline team, a specialist service offering expert knowledge to churches and charities. We are looking to implement a new youth initiative in the town and were thinking of having an appeal to raise funds for the project. Is there anything that we need to be aware of? Specific appeals to raise funds for equipment, projects, or other initiatives are often a good way to bring a cause to the attention of the congregation and appeals sit firmly within the mainstream of church fundraising. On the face of it, appeals appear to be quite straightforward; the cause is identified and a formal or informal appeal for funds is launched. However, there are some potential problems lurking beneath the surface which could, if not considered beforehand, land you with some problems including having to respond to a ‘failed appeal’. A ‘failed appeal’ is somewhat of a misnomer, with even seemingly successful appeals failing perhaps because too much money was raised! Some general guidelines for churches considering appeals include: c Remember that funds

c Communicate the appeal as raised from appeals will be an exercise of faith rather considered restricted and than an exercise of finance; so can’t be used for any c Provide a rough timetable of purpose other than that set when funds are expected; out in the appeal; c Carefully consider the Gift c Keep the purpose of the Aid rules; where conditions appeal quite broad, or apply Gift Aid can’t always introduce a secondary more be claimed. general purpose;

Financial appeals are a useful source of fundraising for many churches and, if planned properly, will help the church meet its purpose. And remember, if raising funds online is a feature of your appeal, you should consider joining thousands of other churches and Christian charities now using our very own fundraising website, Give.net, as an alternative to the likes of JustGiving and co. 28

I understand that the Charity Commission has issued new Directions to independent examiners. Is this likely to impact my work as treasurer?

We are currently structured as a company and I hear that there are plans to allow charitable companies to become CIOs. Is this something we should consider?

In short the answer is almost certainly yes. Following the recent trend in most areas of governance, the new Directions (which are issued by the Charity Commission and provide the structure for the work that examiners must complete) require more rather than less from examiners, who in turn are likely to require more from their clients. This is especially true for those clients preparing accounts under the accruals basis where the Directions are significantly more onerous.

For a long time, it was normal for a charity to be structured as an unincorporated trust. This form of charity has some weaknesses, most notable of which is the unlimited joint and several liability carried by each trustee. Also there are difficulties in the way properties are owned. Because of this many charities were structured as companies limited by guarantee. The downside is that the charitable company must adhere to both Charity and Company Law.

One example is the requirement under Direction 9 (a new Direction introduced for the first time in 2017) for examiners to check that trustees have properly considered the financial circumstances of the charity when assessing going concern. In short, will the charity be able to continue to meet its liabilities as they fall due. In practice, this is likely to mean examiners requesting and assessing charity budgets and possibly cash forecasts.

In the last few years it has been possible to form a charitable incorporated organisation (CIO). This is similar to a charitable company but does not need to apply Company Law and almost all the new charity formations which we see are using this structure. As a result many charities have wanted to become CIOs but have only been able to do so by forming a new charity and transferring operations to it, which is administratively cumbersome.

These new Directions apply to independent examinations where the examiner’s report is signed and dated after 1 December 2017 and so we are all entering into a new regime which will undoubtedly take a little time to settle down. If you want to read more about these new Directions, please see our briefing paper ‘Directions and Guidance for Independent Examiners’. To learn about Stewardship’s own independent examination service, visit stewardship.org.uk/aes

Legislation has been announced (expected in 2018) so that charitable companies can convert to CIOs with minimal disruption. This is a much simpler way for those charities formed as companies to benefit from being a CIO and avoiding all the Company Law complications. Because of the simpler regime for CIOs than for companies we think many churches and charities would benefit from converting. However, if you have, or are considering taking, a mortgage there are some issues you should consider before making this leap.

Visit stewardship.org.uk/blog for links to all the briefing papers mentioned Stephen Mathews, Head of Accountancy and Consultancy Services. Subscribe to Stewardship’s consultancy helpline service, visit stewardship.org.uk/consultancy Subscriptions for churches and charities start from as little as £50 per year. If you have a question you would like addressed in a future edition of Share, please write to us at editor@stewardship.org.uk

WHY I

GIVE Bernadette Cunningham

Bernadette is Director of Thornsett Group plc, a family owned and managed property development company.

What’s the easiest thing?

What were you taught about generosity when you were a child?

What Biblical passages inspire generosity in you the most?

I come from an incredibly generous family. My uncle and aunt were always buying me thoughtful presents, and gave me a lot of their time. Also, if anyone asks my dad for anything, he always gives them what they need. I like to joke with him that it would be more tax-efficient if he set up as a registered charity!

I love these words from Malachi 3:10: “Bring all the tithes (the whole tenth of your income) into the storehouse, that there may be food in my house. Test me in this,” says the LORD Almighty, “and see if I will not throw open the floodgates of heaven and pour out so much blessing that there will not be room enough to store it.” (But don’t be limited by a tenth of your income. I’m challenged when I hear about people like LeTourneau who gave 90% of his income and how John Wesley handled his finances.)

What do you know about giving that you didn’t know ten years ago? One challenge of writing an article like this is that the Bible is really clear that giving should be an absolutely private matter with God. Don’t let your left hand know what your right hand is doing, Jesus says. However, what I’ve learned is that the attitude of giving is something that God wants me to share. I feel called to give practical advice to release others to a greater generosity.

What’s the hardest thing? I used to be really hung up about being debt-free. If I could only pay down the mortgage then I would feel completely secure. But God tells us that he has already given us everything we need to be secure, and clothed us in royal splendour to boot! It’s a lifelong process to learn to trust that God provides but as we do it frees us to give. Everything we have is just on loan anyway.

I love the story of RG LeTourneau, a rags to riches businessman who was convinced that he could not out-give God. “I shovel it out,” he would say, “and God shovels it back, but God has a bigger shovel.” That says it all really.

What’s the best example of generosity you have seen in action? A couple that has had a massive impact on me is John and Dorothy Davies (see page 10). I think they would be uncomfortable if I said too much about their incredibly sacrificial acts of generosity, but I hope they are ok with this short anecdote. I recently attended Dorothy’s 90th birthday. While chatting to guests, I met three or four people who told me that John and Dorothy had spontaneously bought them new bikes after their old ones had been stolen (and without asking for help!). Active generosity is to fill an identified need before we are asked.

It’s a lifelong process to learn to trust that God provides but as we do it frees us to give. Everything we have is just on loan anyway. 31

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