Churches with charitable status

2010nodebt

How do they manage it ?

I have been looking at the charity commission site , and one church has £35 million in the bank and 200 million worth of unmortgaged property , yet gave out 2 million to causes in its last accounts.

Surely this can not be right ?

fengirl_2

Promotion of religion is a charitable cause in English charity law, so all churches are required to register with the Charity Commission.
I agree that many charities, not just churches, carry large amounts of reserves, which is why I would always advise anyone thinking of donating to any charity to look at the accounts and especially the balance sheet.
The Charity Commission cannot possibly investigate all accounts which cross its desk and their response would be to say that its up to you to challenge the particular charity on its reserves. In this case, the church gave out £2million to causes, but did it also not spend a lot of money in actually promoting its own charitable cause, ie promoting religion, maybe by the upkeep of churches, paying the clergy, etc?

anamenottaken

2010nodebt wrote: »

How do they manage it ?

I have been looking at the charity commission site , and one church has £35 million in the bank and 200 million worth of unmortgaged property , yet gave out 2 million to causes in its last accounts.

Surely this can not be right ?

Don't know which church this would be but:

unmortgaged property is probably property used by its operations - for worship, housing its workers or to raise the income it uses for its charitable purposes

money "in the bank" will be earning income, not sitting idly losing value - again providing income for charitable purposes

"to causes" presumably is to organisations supported by the organisation but not directly part of the organisation

What's your purpose in raising this question?

Do you want the church to mortgage its property so that it spends more money in paying the financial institution and less on the charitable causes for which it exists?

Debt_Free_Chick

Reserves would be required in preparation for maintenance and replacement or renewal of the church's property.

Why not contact the Treasurer and ask what the reserves are being built up for? They ought to know and therefore should be able to explain.

2010nodebt

My reason for asking was that the same church (Mormons) is a corporation in the US and is currently spending $2 billion on a shopping mall, saying that the investment in this is better than earning interest, they have also bailed out beneficial life for $650 million . How can they be allowed to be a charity in the UK, meaning the UK tax payer subsidises them via gift aid tax breaks and no rates being paid?

borders_dude

I know of my one church who had lots of property left to it over the years many many years ago. As prices rose a few years ago some surplas houses were sold. Nothign wrong with them having money in the bank!

fengirl_2

If they meet the criteria for being a charity in the UK, ie they are set up for charitable purposes, eg religion and are for the wider public benefit, ie not set up for someone's grandchildren, then they have to register as a charity. The UK charity will be separate frm the US charity and, as borders dude says, they have to make the most of their money. If they want to invest capital, they have to take proper advice, ie no gambling on the first favourite at Newmarket, and they must, of course, use the income from the investment for charitable purposes.

CIS

How can they be allowed to be a charity in the UK, meaning the UK tax payer subsidises them via gift aid tax breaks and no rates being paid?

Even if they weren't a charity, as a public place of worship they are exempt from business rates.

mrs_lds

They are investing their money rather than let it sit it in the bank gaining little intrest

Horace

2010nodebt wrote: »

My reason for asking was that the same church (Mormons) is a corporation in the US and is currently spending $2 billion on a shopping mall, saying that the investment in this is better than earning interest, they have also bailed out beneficial life for $650 million . How can they be allowed to be a charity in the UK, meaning the UK tax payer subsidises them via gift aid tax breaks and no rates being paid?

Mormons pay tithes to the church and religion is big business, in the UK as others have said churches need to register as charities and the Mormon church is no different really. Scientologists also pay a huge tithe and this religion was set up by a sci fi writer because he knew that religion, particularly in America is big business, and I guess folks (no offence intended) are dumb enough to become members and part with their cash. In some respects you have to admire the Mormons and other faiths where you pay a tithe because these churches are run as a business (the business of religion) whereas our churches (CofE etc) rely on donations on the collection plate.

If you don't like the money that they make - then choose another religion or don't go to church.

lincroft1710

A "church" building is only exempt from rates if it is certified as a place of public religious worship. Some "fringe churches" may not comply with this stipulation and thus may not be exempt from paying rates.