Bury Grammar Schools Charity: Charity Commission decision
Published 15 November 2013
Applies to England and Wales
© Crown copyright 2013
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The issue before the Charity Commission was whether the Commission should object to the resolutions made under s268 and s274 of the Charities Act to transfer the assets of a number of charitable prize funds to Bury Grammar Schools Charity.
The objects of Bury Grammar Schools Charity are -‘to advance the education by the provision, maintenance and support of a school(s)’.
The charitable trust funds were given by benefactors for the purpose of providing bursaries, scholarships and prize funds.
The objects of the funds are considerably narrower than the objects of the receiving charity.
Any assets transferred to Bury Grammar Schools Charity under the resolution would be held for the purpose of the receiving charity; that is to provide, maintain and support a school.
The trustee has assured us that transferred funds would be ring fenced and used for the purposes for which they had been given and we have no reason to doubt their intention. However under this arrangement, there would be no legal restriction to prevent the funds being used for running the school at some point in the future.
On the basis that that the objects of the charitable funds are not substantially similar to the receiving charity, the Commission upheld our objection to the resolutions.
We advised that if trustees of the funds consider that it is expedient in the interests of furthering their purposes to transfer them into one fund; this could be achieved by establishing a charity with the objects below.
The object of the charity is to further the education of current and former pupils of Bury Grammar School (Girls) and Bury Grammar School (Boys) by:
1. the provision of scholarships and bursaries to pupils in financial need; and
2. the award of prizes or other suitable forms of reward or marks of distinction.