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have different implications for staf ng, housing needs and ultimately for the institute’s and charity’s nances.
But, given all of that, the long term nancial projections prepared for religious institute clients suggest that at some point decisions will need to be taken about what else to do with the charity’s assets. For some religious institutes, this decision is becoming more pressing as valuable property assets are sold because they are no longer required. Decisions need to be taken regarding what is to be done with the disposal proceeds and excess funds. Charity trustees may decide that they wish to donate excess funds to other organisations such as charities or to your own institute’s missions overseas. In other words, become more involved in grant making.
WHY IS GRANT MAKING BECOMING MORE RELEVANT TO RELIGIOUS INSTITUTES AND THEIR CHARITABLE WORK IN THIS COUNTRY?
Many religious institutes used to be “asset rich but cash poor”. They needed properties in which their members could live and properties in which their works could be carried out. The decline in members has meant that the need for properties has now both changed with more standard, modern residential properties or houses being needed with, in some cases, moves from community living to single dwelling properties. Similarly, the transfer of properties to independent charities has meant that large institutional properties are now being leased or sold to such organisations. The impact of all of this is that assets that once comprised bricks and mortar are being replaced with cash and/or investment assets.
There are few or no new vocations for institutes in the UK and the average age of members in the UK is increasing – it is now early eighties – and the number of members is falling. As a charity, the religious institute in the UK has to be seen to be using its funds for charitable purposes to satisfy the requirements of both the Charity Commission and HM Revenue and Customs (HMRC). While it is undeniable that signi cant sums of money will be needed in the years ahead to look after the living and care needs of members, some religious institutes now have or will have amounts in excess of their care and traditional pastoral needs and will need to consider new ways of achieving their mission. This is where grant making becomes relevant.
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