News & Updates

Charity Reorganisation Scheme

("Reorganisation Scheme")

 

 

Are you having difficulty effecting clauses in your charity's constitution which no longer seem relevant but you are unable to update the constitution?  Are you a trustee who feels that the Trust you administer has fulfilled its purposes and should be wound up however the trust deed does not provide for this?

 

Help might be at hand.  This update will discuss the new Charities Reorganisation (Scotland) Regulations 2007 ("the Regulations") which allows Scottish charities the power to amend their constitutions even where this power does not appear in their constitutions, subject to consent from the Office of the Scottish Charity Regulator ("OSCR").  

  

The Regulations set out the application process which a charity must go through in order to take advantage of the reorganisation scheme and the requirement on the charity to publicise its intentions.

 

Please note however only charities registered in Scotland with OSCR can apply for OSCR‘s approval to proceed with a reorganisation scheme

 

 

Why a charity would want to reorganise?

  

OSCR are willing to consider a Reorganisation Scheme if one of the following conditions applies to the charity's constitution:-

 

1.         That some or all of the purposes of the charity have been fulfilled as far as possible or are adequately provided for by other means;

 

2.         That some or all of the purposes of the charity can no longer be given effect to;

 

3.         That some or all of the purposes of the charity have ceased to be charitable proposes;

 

4.         That some or all of the purposes of the charity have ceased in any other way to provide a suitable and effective method of using its property, having regard to the spirit of its constitution; or

 

5.         That a provision of the charity's constitution (other than a provision setting out the charity's proposes) can no longer be given effect to or is otherwise no longer desirable.

 

  

Types of Reorganisation Scheme

  

OSCR can approve 3 types of Scheme which are as follows:-

 

1.         A variation of the constitution of the charity (whether or not in relation to its purposes);

 

2.         A transfer of the property of the charity (after all liabilities have been satisfied) to another charity; or

 

3.         Amalgamation of the charity with another charity.

  

  

Results of the Scheme

  

In order to approve the scheme OSCR must by satisfied that a certain result will follow due to the reorganisation.  These are:-

 

  • The ability to use the resources better for charitable purposes; and/or

 

  • The more effective administration of the charity.

 

Publicity Element

  

One aspect of the Reorganisation Scheme which is different from the normal OSCR consents and notifications procedures is the requirement that all proposed schemes must be advertised on OSCR's website (and depending on the gross annual income of the charity, a notice placed in a national newspaper carrying the details of the scheme) for a certain period of time.

 

Further enquiries

  

If you are interested in any further information on a reorganisation scheme or would like to take forward an application under the Regulations for reorganising your charity please do not hesitate to our Charity Team on 0141 221 5562.