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Custodian trust funds

Trust funds can provide valuable support for the mission and ministry of the church both now and for future generations.

Many churches hold trust funds that have been established through generous gifts, legacies, the sale of property, or other historic arrangements. These funds can provide valuable support for the mission and ministry of the church both now and for future generations.

Where funds are required to be held on a permanent basis, they are held by the diocese as custodian trustee in accordance with the Parochial Church Councils (Powers) Measure 1956. In most cases the PCC acts as managing trustee, retaining responsibility for decisions about investment, expenditure and the overall management of the fund, while the diocese safeguards the assets, holds the governing document for safekeeping and carries out the managing trustees’ lawful instructions.

Every trust fund has its own governing document, such as a will, trust deed or Charity Commission scheme. This document sets out the purposes of the fund, and whether the income, capital, or both may be spent. (Where only the capital can be spent, there are sometimes steps that the PCC can take to change this.) Understanding this document ensures that funds are managed lawfully and in accordance with the wishes of the original donor.

The guidance in this section explains how to:

  • understand the role of the diocese and the managing trustees;
  • request withdrawals and grants;
  • review and change investments;
  • spend permanent endowment where charity law permits;
  • change the purposes of a trust where those purposes can no longer be fulfilled effectively;
  • obtain account statements and trust information;
  • determine the correct accounting treatment for trust funds; and
  • understand Charity Commission registration requirements.

Whether you are looking to release funds for a project, receiving a new legacy or reviewing your investments, these resources will help trustees understand their responsibilities, and work with the Diocese to ensure that trust funds continue to support their charitable purposes in the most effective way for your church.

I have questions about trust funds

Please get in touch with trustadmin@oxford.anglican.org or read our guidance.

Guidance documents

Spending trust funds

Accounting for trust funds

Investing trust funds

Applying for a change of purpose

Setting up and registering trust funds

General administration

Forms and templates