The distinct roles of Charities Services, the Registrar of Incorporated Societies and the Registrar of Charitable Trusts

A charitable trust board resolved to vary its trust deed to change its charitable purpose and to change how members of the board were appointed.  They uploaded the updated charitable trust deed to Charities Services.

A donor, who specifically wanted to donate to them because they had heard about their new purpose, looked them up on the Register of Charitable Trusts and was confused to see that the new deed had not been registered.

Many charitable trust boards are registered with Charities Services to gain tax exempt status.  However, the register that confirms the trust is a legal entity, where any changes to the deed need to be approved first, is the Register of Charitable Trusts.

We have seen many situations where trusts (and indeed incorporated societies) believe that Charities Services is the only register that they should be looking at and the only place that changes to the trust deed need to be noted.  This is not correct.

The Registrars’ Role

The Registrar of Charitable Trusts incorporates charitable trust boards under the Charitable Trusts Act 1957. The Registrar oversees legal compliance with that Act and does not consider charitable status or tax exemptions.

Registering as a charitable trust board grants the trust separate legal identity from its trustees and most charitable trusts choose to do this. 

The Registrar of Incorporated Societies is responsible for incorporating, maintaining and ensuring legal compliance of incorporated societies under the Incorporated Societies Act 2022.

Registering as an incorporated society or charitable trust does not automatically register your entity as a charitable entity with Charities Services - this must be done separately.

Any variations to a trust deed for a charitable trust board must be registered with the Registrar of Charitable Trusts first, before Charities Services.  This ensures the registrar has checked and approved the document first.

Charities Services’ Role

Charities Services is the regulator overseeing registered charities in accordance with the Charities Act 2005, which grants tax exemptions to entities that meet the charitable purpose requirements.

Charities Services only deals with existing legal entities that are applying for charitable status.  Therefore the entity needs to exist as a legal entity first, before making an application to be a charity.

Registering as a charity with Charities Services does not make an entity a legal entity; it simply allows it to call itself a charity and grants it tax exempt status.

Variations to trust deeds (or in the case of incorporated societies, constitutions) should be uploaded to Charities Services for approval after they have been approved by the Registrar of Charitable Trusts (or Registrar of Incorporated Societies for societies).

Summary

People often confuse the roles of these regulators given the overlapping terminology. Both have filing requirements and it is important that all existing registered charities are aware of their obligations to both.

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