PCCs are charities established by the Parochial Church Councils (Powers) Measure 1956, which sets out the purpose of the PCC as ‘promoting in the parish the whole mission of the Church’.
Being a charity means that PCC members are charity trustees who have a legal responsibility for the management and administration of the church. Therefore, as trustees, PCC members have 6 main duties set out by the Charity Commission that they are legally obliged to uphold.
1. Ensure your charity is carrying out its purposes for the public benefit
Trustees must make sure that the charity is carrying out the purposes for which it is set up, and no other purpose. This means you should:
- ensure you understand the charity’s purposes as set out in its governing document (see point 2 below)
- plan what your charity will do, and what you want it to achieve
- be able to explain how all of the charity’s activities are intended to further or support its purposes
- understand how the charity benefits the public by carrying out its purposes
Spending charity funds on the wrong purposes is a very serious matter; in some cases trustees may have to reimburse the charity personally.
2. Comply with your charity’s governing document and the law
Trustees must:
- make sure that the charity complies with its governing document
- comply with charity law requirements and other laws that apply to your charity
Trustees should take reasonable steps to find out about legal requirements, for example by reading relevant guidance or taking appropriate advice when you need to.
The governing documents of PCCs are the Parochial Church Councils (Powers) Measure 1956 and the Church Representation Rules and must be adhered to.
Following the wider law means that PCC members must be aware of a range of other laws that impact the church’s operation (e.g. Canon law, health and safety law, employment law, safeguarding law, GDPR, and others) and act accordingly.
3. Act in your charity’s best interests
Trustees must:
- do what they (and no one else) decide will best enable the charity to carry out its purposes
- make balanced and adequately informed decisions, thinking about the long term as well as the short term
- avoid putting themselves in a position where their duty to their charity conflicts with their personal interests or loyalty to any other person or body
- not receive any benefit from the charity unless it is properly authorised and is clearly in the charity’s interests; this also includes anyone who is financially connected to them, such as a partner, dependent child or business partner
This means that PCC members must make decisions solely in the church’s best interests. There may be times where PCC members remove themselves from decision making processes in order to avoid conflicts of interest.
To find out more about managing conflicts of interest, see the Charity Commission’s Guidance.
4. Manage your charity’s resources responsibly
Trustees must act responsibly, reasonably and honestly. This is sometimes called the duty of prudence. Prudence is about exercising sound judgement. Trustees must:
- make sure the charity’s assets are only used to support or carry out its purposes
- not take inappropriate risks with the charity’s assets or reputation
- not over-commit the charity
- take special care when investing or borrowing
- comply with any restrictions on spending funds
Trustees should put appropriate procedures and safeguards in place and take reasonable steps to ensure that these are followed. Otherwise, trustees risk making the charity vulnerable to fraud or theft, or other kinds of abuse, and being in breach of their duty.
This means, among other things, that all PCC members (not just the treasurer or finance subgroup) are responsible for the financial and building management decisions taken and PCC members must keep themselves informed about the church’s assets.
5. Act with reasonable care and skill
Trustees:
- must use reasonable care and skill, making use of their skills and experience and taking appropriate advice when necessary
- should give enough time, thought and energy to their role, for example by preparing for, attending and actively participating in all trustees’ meetings
This means that PCC members:
- Must use their skills and experience to make informed and responsible decisions
- Must be aware of the edges of their knowledge and competencies
- Must keep themselves informed of PCC business
- Should be active and engaged in PCC meetings
6. Ensure your charity is accountable
Trustees must comply with statutory accounting and reporting requirements. They should also:
- be able to demonstrate that their charity is complying with the law, well run and effective
- ensure appropriate accountability to members, if their charity has a membership separate from the trustees
- ensure accountability within the charity, particularly where they delegate responsibility for particular tasks or decisions to staff or volunteers
This also means that all PCC members are responsible for the decisions the PCC makes and must ensure there is accountability for the decisions and tasks the PCC delegates. This would also include the duty to report serious incidents to the Charity Commission and ensuring that finances are audited by an external qualified auditor.
To find out more about being a trustee, here are some helpful links:
Trusteeship: An Introduction for PCC Members – Church of England
The Essential Trustee – Charity Commission
Decision Making for Trustees – Charity Commission
Managing Faith-based Charities as Trustees – Charity Commission
Conflicts of interest: a guide for charity trustees - Charity Commission