The Leeds Diocesan Board of Finance acts as Diocesan Authority or custodian trustee for many trust funds by virtue of the Parochial Church Councils (Powers) Measure 1956 and the Incumbents and Churchwardens (Trusts) Measure 1964 where the managing trustees are parochial church councils and others.
Where investment shares are gifted as a permanent endowment (i.e. only the income may be used and the capital must be held) and the purposes are ecclesiastical then section 6 of the Parochial Church Council (Powers) Measure 1956 (the Measure) amended applies and the DBF have to hold the shares as custodian trustee. This is the historical position for most of these funds.
As the custodian trustee, the DBF administer these funds on behalf of the parish (managing trustee), and must act on their lawful instructions. However, as the custodian trustee, the DBF also has a responsibility to ensure that monies are spent in line with the trust documents.
More information about how the DBF administer the funds and the rules appertaining to PCCs are detailed in our PCC Funds page.
Charitable Trusts: A Guide for Clergy and Licensed Lay Workers' can be found here