The Charity Commission has partnered with Community Foundation Wales to launch a Revitalising Trusts programme and will soon contact charities believed to be inactive.
By approaching these inactive charities the regulator hopes to release £25m for other charities. A similar programme in England has so far released £32m.
The Commission plans to contact over 200 charities that are considered “inactive” because they have not had any income or expenditure for five years, or “ineffective” because they have spent less than 30% of their total income over five years.
Trustees will be offered support to reactivate the charity. Otherwise, funds are redeployed to similar causes or the trust is transferred to Community Foundation Wales.
The Welsh government has provided £211,000 to support the programme over two years.
Helen Stephenson, chief executive of the Charity Commission, said: “We have so far exceeded our initial targets and released over £32m to aid charities in England and now, with funding from the Welsh Government, we want to deliver similar success for charities in Wales – especially during this time of heightened need.
“The Charity Commission is therefore calling on the trustees of charities in Wales, who may be eligible for the scheme, to come forward either for assistance to get up and running again or so that funds currently lying idle in accounts can be transferred to best help active charities and those they benefit in Wales.”
Richard Williams, chief executive of Community Foundation Wales, added: “The grants that will be generated by the Revitalising Trusts Programme will be a lifeline to grassroots charities as they strive to recover from the Coronavirus pandemic whilst continuing to support communities across Wales.”
The Commission says that there are no deadlines charities need to be aware of.
Programmes in England and Scotland
Sine the programme launched in England 1,800 charities have taken part and £32m has been “revitalised”.
For example, in January 2019, the Commission identified the Berwick Upon Tweed Nursing Amenities Fund as a dormant trust eligible for the programme. When it decided to wind up, over £42,500 was transferred to the Northern Angel Fund at the Tyne and Wear Community Foundation. This fund supports charitable activity that improves the skills of local people, enhances community cohesion, and contributes to the unique and diverse culture of Berwick.
Meanwhile, Foundation Scotland and the Scottish Charity Regulator (OSCR) are also working on a similar scheme to identify so-called “sleepy trusts” which could be reactivated or reorganised. Those trusts will be identified according to the number of grants they have made in recent years and whether they have filed accounts with OSCR.
Its programme has identified around 400 that may not be using their funds to full effect and will launch in April.
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