A QUICK GUIDE TO THE CHARITIES
AND TRUSTEE INVESTMENT (SCOTLAND) ACT 2005

The full text of the Charities and Trustee Investment (Scotland) Act 2005 is online at www.opsi.gov.uk/legislation/scotland/acts2005/20050010.htm

Here are some quick pointers in relation to the Act for the benefit particularly of those involved in existing charities:

1. ensure that the charity’s name is not likely to be objectionable to OSCR

see section 10

2. adhere exclusively to the charity’s Charitable Purposes and ensure that these fall within the statutory list of charitable purposes within the new Charity Test

see section 7

3. demonstrate that the charity’s activities provide Public Benefit and that, where there are any restrictions imposed by the charity on receiving benefit, these are not unduly restrictive

see section 8

4. ensure that the charity
• is not dormant or non-active or

  see section 8

• has dormant bank accounts

  see section 47

5. ensure that the charity’s assets are not applied to any non-charitable purpose

see sections 7 and 19

6. ensure the fact that the organisation is a charity is specified on all its stationery, cheques, invoices, brochures, advertisements and website

see section 13 , 15 and Regulations

7. complete and return OSCR’s Annual Return on time and provide OSCR with all other information it reasonably seeks

see sections 22, 28 and 29

8. lodge a signed set of the charity’s accounts (and those of any other organisation “controlled” by the charity) to OSCR within the specified time-limit

see section 44 and Regulations)

9. obtain a Declaration from each new Trustee to confirm that they are eligible to act as a Trustee - please note that such a Declaration may also cover other matters (some of which may be required within Regulations)

see sections 66 and 69)

10. ensure induction and continuing training of all Trustees
11. notify OSCR within 3 months of any change in:-
• principal office (or Principal Contact person)
• entry details on Register of Charities
• changes in constitution (excepting charitable purposes)

see section 17

12. obtain timeous prior consent from OSCR for any change in:-
• name
• charitable purposes
• amalgamation
• winding up

see section 16

13. ensure that any remuneration of a Trustee, or anyone connected to a Trustee, is permitted and, if relevant, enter into a Remuneration Agreement with such Trustee

see section 67

14. enter into a Fundraising Agreement with ‘professional fundraisers’ and ‘commercial participators’

see sections 81 - 83

15. attend to all licensing and other requirements in respect of Public Benevolent Collections

see sections 84 - 92

16. consider any constitutional changes which may be appropriate, including:
• change of name
• change in or enlargement of Charitable Purposes
• permitting remuneration of Trustees
• permitting power to appoint nominees for investment purposes
• permitting delegation of investment decisions
• change of the Accounting Reference Date (year end date) if this has to be changed, rather than the AGM date, in order to comply with the 7 month deadline for lodging accounts with OSCR
• permitting independent financial examination rather than an audit (except for charities which are “community bodies” under the Land Reform (Scotland) Act 2003 or have annual incoming resources in excess of £500,000)
• reorganisation
• amalgamation
17. take the opportunity generally to update Governance, Management, Financial Information and Board Policies
18. check the OSCR website regularly at www.oscr.org.uk for Latest News and Recent Publications as well as verifying the details of your charity on the Scottish Charity Register.