Citation, commencement and interpretation

1

(1)    This Order may be cited as the Charities Acts 1992 and 1993 (Substitution of Sums) Order 2009 and comes into force on 1st April 2009.

(2)    In this Order—

“the 1992 Act” means the Charities Act 1992;

“the 1993 Act” means the Charities Act 1993;

“financial year” has the meaning given by the 1993 Act.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see para (1) above.

Amendments to the 1992 Act

2

Amendments to the 1992 Act2

The 1992 Act is amended as follows.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

3

3

In section 58(3)—

(a)    in paragraph (a)(i) for “£5” substitute “£10”;

(b)    in paragraph (a)(ii) for “£500” substitute “£1,000”;

(c)    in paragraph (b) for “£500” substitute “£1,000”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

4

4

In section 60(4) and (5) for “£50”, in each place it occurs, substitute “£100”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

5

5

In section 60B(2) and (5)—

(a)    in paragraph (a)(i) for “£5” substitute “£10”;

(b)    in paragraph (a)(ii) for “£500” substitute “£1,000”;

(c)    in paragraph (b) for “£500” substitute “£1,000”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

6

6

In section 61—

(a)    in subsection (1)(a) for “£50” substitute “£100”;

(b)    in subsection (2) for “£50”, in both places, substitute “£100”;

(c)    in subsection (3)(a) for “£50” substitute “£100”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

Amendments to the 1993 Act

7

Amendments to the 1993 Act7

The 1993 Act is amended as follows.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

8

8

In section 40(2) for “£500” substitute “£1,000”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

9

9

In section 42(3) for “£100,000” substitute “£250,000”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

10

10

In section 43—

(a)    in subsection (1)(b) for “£2.8 million” substitute “£3.26 million”;

(b)    in subsection (3) for “£10,000” substitute “£25,000”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

11

11

In section 45(3) and (3A) for “£10,000” substitute “£25,000”.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

Transitional provisions and savings

12

Transitional provisions and savings12

The amendments made by article 3 do not affect the operation of Part 2 of the 1992 Act in relation to any solicitation of money or other property made before 1st April 2009 by a person to whom paragraph (b) of the definition of “professional fund-raiser” in section 58(1) of that Act applied on the date the solicitation was made.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

13

13

The amendments made by article 4 do not affect the requirements of section 60(5) of the 1992 Act in relation to any payment of £50 or more made before 1st April 2009.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

14

14

The amendments made by article 6 do not affect—

(a)    the operation of section 61(1) or (3) of the 1992 Act in relation to any payment of £50 or more made in response to any solicitation or representation made before 1st April 2009; or

(b)    the operation of section 61(2) of the 1992 Act in relation to an agreement entered into in response to any solicitation or representation made before 1st April 2009 under which the donor is or may be liable to pay an amount or aggregate amount of £50 or more.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

15

15

The amendment made by article 8 does not apply to rentcharges released before 1st April 2009.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

16

16

The amendments made by articles 9, 10 and 11 apply to any financial year of a charity ending on or after 1st April 2009.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

Consequential revocation

17

Consequential revocation17

Paragraphs (3) and (4) of article 2 of the Charities Act 1993 (Substitution of Sums) Order 1995 are revoked.

NOTES
Initial Commencement
Specified date

Specified date: 1 April 2009: see art 1(1).

Signature

Kevin Brennan

Parliamentary Secretary

5th March 2009

Cabinet Office

EXPLANATORY NOTE

EXPLANATORY NOTE (This note is not part of the Order)

This Order amends the Charities Act 1992 (“the 1992 Act”) and the Charities Act 1993 (“the 1993 Act”) by substituting the sums specified in the Order. The effect of the Order is to increase the financial thresholds which trigger some of the regulatory requirements applying to charities.

Article 3 changes the definition of “professional fund-raiser” in section 58 of the 1992 Act by increasing the applicable remuneration threshold.

Article 4 amends section 60 of the 1992 Act to reflect the change made by article 6.

Article 5 amends section 60B of the 1992 Act by increasing the remuneration threshold below which lower paid collectors are excluded from the provisions of section 60A by the 1992 Act.

Article 6 amends section 61 of the 1992 Act by increasing the minimum donation entitling donors to cancel payments or agreements made in response to appeals.

Article 8 amends section 40 of the 1993 Act by increasing the consideration up to which a charity can recover the costs of proving title to a rentcharge.

Article 9 amends section 42 of the 1993 Act by increasing the amount of gross income in any financial year at or below which a charity may elect to prepare a receipts and payments account and a statement of assets and liabilities instead of a statement of accounts.

Article 10 amends section 43 of the 1993 Act by increasing the asset threshold which applies for the purpose of determining whether a charity is required to have its accounts audited and by increasing the amount of gross income in any financial year beyond which a charity is required to have its accounts independently examined or audited.

Article 11 amends section 45 of the 1993 Act by increasing the level of gross income in any financial year above which a charity is required to submit its annual report and accounts to the Charity Commission.

Articles 12 to 16 make transitional provisions and savings.

Article 17 revokes the provisions of the Charities Act 1993 (Substitution of Sums) Order 1995 (SI 1995/2696) rendered obsolete by this Order.

A full impact assessment of the effect that this Order will have on the costs of business and the voluntary sector is available from the Office of the Third Sector, 2nd Floor, Admiralty Arch, South Side, The Mall, London SW1A 2WH (020 7276 6028) and is annexed to the Explanatory Memorandum which is available alongside this Order on the OPSI website (http://www.opsi.gov.uk).

Accounting94 Charities93 Fund Raising92 Charities Accounts93 Auditing94