A charity would like to use our hall for a youth project, but only have limited funding. The PCC would like to support this, as we have no other outreach to youngsters in the parish. Do we have to charge them a full rent?
If the parish regarded this use as part of the parish's mission and it could be said that the charitable objects of the youth project were in line with the charitable objects of the parish, then in some circumstances exemption from the requirements of the Charities Act to obtain a market rent is possible.
We have been asked by a non-Anglican charity to allow them the use of the
church hall at a reduced rent. The PCC agree that they have a worthwhile project
and would like to support them. Would the requirement for full market rent apply
in this instance?
Although the PCC may feel that it should be supporting worthwhile projects, exemption from the requirements of the Charities Act would only apply if it can be demonstrated that the charity's objectives are in line with the charitable objectives of the Church. Some parishes overcome this by charging a full market rent and supporting the work of the charity as part of their charitable giving.
The PCC are considering letting the church hall during the week. They are
not sure how to go about this and would like to get advice but are worried about
incurring fees.
Biscoe Craig Hall will provide initial consultation and advice to parishes without charge and will advise their fee rates. PCCs are then free to decide whether they wish to appoint them.
We have a playgroup who have been using the hall for the last five years.
There is no formal agreement with them but we have never had any problems.
Most parishes are able to maintain a good relationship with their tenants and do not experience any difficulty but, should a future problem occur, then without the benefit of a properly executed agreement the result can be expensive legal costs. Furthermore, as managing trustee, PCCs have a responsibility to inform the Fund of any proposed lease or material change to the property, including any major structural changes.
What should we do if we are not sure whether our letting arrangements are
adequate?
PCCs may like to discuss how they use their halls and other properties and relevant agreements with their Archdeacon. Alternatively, Karen Smith can be contacted at Diocesan House.
We are thinking of increasing the rent for existing users, how should we
do this?
In public relations terms this needs to be handled sensitively, as a number of churches have discovered to their cost when tenants have gone to the local press. What you do not want is a headline that says "Church evicts pensioners". It is best to have a meeting with the users to explain why the increases are necessary. This may be due to increased costs and your need to maximise your income. If some groups cannot afford to pat the increase, as is said in reply to an earlier question, you may be able to support them as part of your charitable giving.
