Adopted by Yaxham Parish Charity at its Meeting on 12 March 2015. Policy on investment of funds and use of funds for charitable purposes
1. The Charity’s governing document states that “Application of income – Subject to payment of the expenses aforesaid the Trustee shall apply the income of.the Charity for such charitable purposes for the general benefit of the inhabitants of the Parish of Yaxham as the Trustee thinks fit.”
2. The Charity will invest its funds in such as way that (i) it is clear which funds are the endowment (and are therefore not to be spent) and which are income and so for use for charitable purposes, (ii) the long term security of the endowment is protected and (iii) regular income is produced for use for charitable purposes.
3. The permanent endowment is to be all the Charity’s funds at 31st December 2014 except the income from 1st April 2013 to date minus the expenditure from 1st April 2013 to date. The value of the permanent endowment at 31st December 2014 is £239,862.
4. In order to ensure the long term security of its funds, the Charity will invest the permanent endowment in a Charity Commission recommended investment specifically designed for charities, namely the CCLA COIF (Charities Official Investment Fund). This investment will provide capital growth of the endowment to protect against devaluation due to inflation, and will also pay dividends as an income to be used for charitable purposes.
5. The income from the endowment investment shall be held in the Charity’s current account.
6. As of 31 December 2014, the permanent endowment sum of £239,862 is invested in COIF, and the income for use for charitable purposes sum of £6,778 is held in the current account.
7. The Trustees will keep the majority of the Charity’s income for longer term, larger projects of benefit to the parish such as allotments or a play area for Clint Green.
8. It was agreed that 10% of the annual income would be made available for smaller projects. Applications for funds for smaller projects should be made in writing to the Clerk and will be considered at the following meeting of the Charity Trustees.
9. The Clerk will provide a financial report at each meeting of the Trustees detailing the balance of the COIF investment and the current account and a record of the income and expenditure for the financial year to date.
10. The Charity’s accounts will be inspected annually by an independent person appointed by the Trustees.
11. The Clerk will prepare the draft annual accounts of the Charity by 30th April following the end of the financial year. These will be circulated to Trustees and reported at the Annual Parish Meeting.
12. The Clerk will prepare the final Charity’s annual accounts by 1st July following the end of the financial year and will submit the annual return to the Charity Commission.