Church Incorporation: Fearless SCIOs! Stages in the process - - PowerPoint PPT Presentation

Church Incorporation: Fearless SCIOs!

Stages in the process

• Initiation – how to get started
• Constitution – formats and options
• Application – regulatory process
• Transfer – people, money and assets
• Notification – who do you need to tell

Critical path items? Titles, banks, pensions, poss. dissolution

Incorporation - Initiation

• What is the right form of organisation?

– Company vs SCIO, what are assets/liabilities

• What does current constitution require?

– Dissolution, meetings, notifications, permissions

• Are there property title limitations?

– Engage early on ownership & restrictions, etc

• Pensions or securities over assets?

– Explore any unintended consequences

• Competence to steer change process?

– Who will guide/assure, relevant experience

Incorporation - Constitution

• Options for new constitution style

– OSCR approved template vs custom built

• Legal and financial quality control

– Operability/regulatory compliance/X-ref’ing

• Integrating requirements and preferences

– Governance/theological basis/correct trustees

• Engaging the church membership

– Expectations or requirements for input?

• Requirement to consider the end game

– Dissolution/winding up and beneficiaries

Incorporation - Application

• Application to OSCR for new entity

– Replaces existing organisation after transfer

• Justification for charity status

– Purpose/public benefit/activity descriptions

• Who is making the application?

– Church leadership role and options

• Dealing with OSCR clarification requests

– Directly or through an advisor?

• Supporting information and timeframes

– Realistic and manageable for implementation

Incorporation - Transfer

• Right to dissolve existing charity (OSCR)
• Transfer agreement

– Process, timing, purpose and items transferred

• Church membership

– Leaving and joining without pain (by default)

• Bank accounts

– Engaging the bank(s) early to avoid drag risk

• Property

– Title transfer & land registration/certification

• Other contractual arrangements

– Employment contracts(TUPE),leases,suppliers

Incorporation - Notification

• OSCR

– Final notification of completion of transfer

• HMRC

– Registering new charitable entity

• Local authority and agencies

– Rates, water supply, other utilities?

• Funding partners and supporters

– Existing grants, payments to church, legacies

• Beneficiaries

– Organisations & people supported by church