PCC Funds

These are unrestricted funds available for the day-to-day running costs of the parish, such as utilities, ministry expenses, administration, and building maintenance. Income for general funds typically comes from planned giving, collections, and fundraising activities.

These are funds given for a specific purpose designated by the donor. The PCC can only use these funds for that particular purpose. Examples include funds for organ maintenance, youth work, or specific building repairs.

These are unrestricted funds that the PCC has decided to set aside for a specific future purpose. While the PCC has the flexibility to change the designation, these funds are earmarked for a particular project or need.

These are funds where the capital is intended to be invested permanently, and only the income generated from these investments is typically used for charitable purposes. There are specific rules governing how the capital of a permanent endowment can be spent, which are detailed below.

A PCC can spend some or all of a permanent endowment fund without the Charity Commission's authority if all of the following apply:

• The market value of the fund is £25,000 or less.
• The PCC is satisfied that they can achieve the purposes of the fund more effectively by spending the fund itself rather than just spending the income.
• The permanent endowment is not designated land.

If a PCC decides to spend capital under these conditions, they must

• Make a formal decision (a resolution).
• Follow the rules in the PCC's governing document to pass the resolution.
• Keep a written record and their reasons for deciding to spend.
• If the diocese is the custodian trustee for the fund, a copy of this resolution must also be sent to them.

A PCC can spend some or all of a permanent endowment fund where:

• The market value of the fund is more than £25,000.
• The permanent endowment is not designated land.

In these cases, Charity Commission consent is mandatory before any spending. The PCC must:

• Pass a resolution that they are satisfied they can achieve the purposes of the fund more effectively by spending the fund itself rather than just spending the income.
• If the diocese is the custodian trustee for the fund, a copy of the resolution and the application to the Charity Commission must also be sent to them

If the PCC wants to use the capital of a permanent endowment fund for a new purpose that differs from the original aims, this is legally considered altering a restriction under Section 280A(8) of the relevant legislation.

In these cases, Charity Commission consent is mandatory before any spending. The PCC must:

• Pass a formal resolution detailing the proposed change of purpose and the reasons for it.
• Submit this resolution, along with a formal application, to the Charity Commission for approval.
• Wait for formal consent from the Charity Commission before spending any funds on the new purpose.
• If the diocese is the custodian trustee for the fund, a copy of the resolution and the application to the Charity Commission must also be sent to them.