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Three charities fail public benefit test

Finance | Gareth Jones | 13 Jul 2009

Three out of twelve charities have failed the Charity Commission’s initial public benefit assessments - two independent schools and one fee-charging care home.

Highfield Priory School, St Anselm’s School Trust and Penylan House Jewish Retirement and Nursing Home have been told their trustees have 12 months to come up with an action plan as they do not provide enough opportunity for those who cannot afford the fees to benefit.

Another care home, the Rest Bay Convalescent Hotel, has been told the benefits it provides are not sufficiently related to its aims, as it mainly provides holidays, and therefore the Commission was unable to form a judgement. It will either have to change its activities or amend its aims.

The remaining eight charities taking part in the first set of assessments, comprising another three independents schools, another care home and four charities for the advancement of religion are all providing sufficient public benefit, though five have been given good practice recommendations.

The Commission has also published its Emerging Findings report with additional information for trustees about meeting the public benefit requirement.

Schools chief criticises focus on bursaries

The Independent Schools Council said it was “highly concerned about the implications” of the decision on the two unsuccessful schools.

“We are deeply disappointed with the approach taken by the Charity Commission, which focuses on the amount of means-tested bursaries provided by each school”, said its chief executive David Lyscom (pictured).

“School charities are not-for-profit enterprises, run by governing bodies to cover costs while maintaining a prudent level of reserves. 

“The implication of the Commission’s findings appears to be that many schools must now aim to provide a significant – but still unspecified – proportion of their turnover in full bursaries. 

“This will inevitably lead to fee increases for the vast majority of parents, putting the benefits of an independent education beyond the reach of a greater number of children.

“In focusing on bursaries, the Commission have not only downplayed the significance of partnerships with local schools and communities, but also deliberately discounted the wider social benefits that individual schools and the independent sector as a whole provide.”

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