Deregistering a Charity
A charity may apply to be deregistered in the following circumstances:
- There is no longer a need for the services provided by the charity;
- The charity has exhausted its endowment, i.e., it no longer has any funds.
If the charity has no assets, the officials should send a letter confirming that the charity has ceased to perform any charitable activities and the reason(s) for the cessation of charitable activities, that it has no assets, enclosing a set of audited accounts prepared up to date, showing a final Nil balance, and requesting that the charity be deregistered.
If it is not possible to use the remaining assets in accordance with the objects of the charity, the action to be taken will depend on the value and type of assets. Charities that fall within the provisions of the Charities Act 1986 may apply to the Attorney General for consent to transfer the assets to another Manx charity with similar aims. This provision of the 1986 Charities Act applies to charities that:
- do not own any land; and
- the gross income in the last preceding accounting year was £5,000 or less.
Charities with assets not covered by the Charities Act 1986 may have to obtain a court order for a cy pres scheme to enable them to transfer their assets.
The charity officials should:
- Ensure that the Manx charity or charities to whom they wish to transfer the assets has/have similar objects;
- Contact the charity or charities in writing, and obtain a letter agreeing to the transfer of the assets;
- Write to the Attorney General, with a copy of this letter, requesting his consent to the transfer of the assets. The Attorney General’s address is: Her Majesty’s Attorney General, Attorney General’s Chambers, 3rd Floor, St Mary's Court, Hill Street, Douglas, Isle of Man, IM1 1EU.
- When the assets have been transferred, the officials should apply for deregistration, as detailed above.
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