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Formal letters explained
Updated September 2010
Charities Services uses a series of standard formal letters (sometimes called notices) as part of its work. This information sheet explains why formal letters are used, what they are used for, ways a charity can reply to them and what people should do if they don't understand them.
Introduction
We use a formal letter (sometimes called a notice) to let a charity know about a decision we have made about it – for example, when we have approved its application for registration.We also use formal letters if we need more information to help us make a decision about a charity's qualification for registration.
These letters are formal because they are part of a legal process authorised by the Charities Act 2005. They may also become part of a High Court or Court of Appeal process if the charity concerned appeals against our final decision.
If you receive one of our formal letters and you don't understand what it means, or what you should do in response to it, you should contact the analyst named in the letter. They will be happy to help you understand the meaning of the letter.
When we write a formal letter we aim to clearly state (if applicable) the:
- issue involved
- legal basis for writing the letter
- different actions the charity can take
- timeline for taking those actions
- consequences of not taking action
- name of the person at Charities Services that the charity can talk to about the letter.
Registration decision letters
The four formal letters we use in relation to registration decisions are called a:
- Notice of approval
- Section 18 letter
- Notice that might lead to decline
- Notice of decline
We explain more about each of these letters below.
1. Notice of approval
We send this letter when an application for registration has been successful.
It includes a registration certificate showing the registration date and number. It also lets the charity know when their first Annual Return is due.
We don't ask for a response to this letter.
2. Section 18 letter
This letter refers to section 18(3) (a) of the Charities Act, which says Charities Services "must have regard to" the charity's activities or other relevant information when making a decision.
We send a section 18 letter when the analyst working on an application can't get a clear picture of the charity's activities.
This may be because the charity's rules have very broad purpose clauses, or because other sources of information such as their website or newsletters don't seem to align with the purposes written in their rules.
This letter asks for more information and gives the charity at least 20 working days to reply.
The charity can send additional information to us by email or by post. It could be in the form of a written description, an annual report, financial report, newsletter, pages from a website and so on.
We encourage people to contact the analyst named in the letter if they are not sure what to do.
If we don't get a response by the deadline specified in the letter, our analyst will make a decision without the benefit of the extra information requested.
3. Notice that may lead to a decline
This letter refers to section 13 of the Charities Act, which outlines the essential requirements for registration.
We send a notice that may lead to a decline when the analyst working on an application has found a problem with the charity's rules or activities.
It doesn't mean that we will decline the application; it means that we have found a problem with it. Often, that problem can be resolved.
For example, the rules may not have an adequate winding up clause, or they may be missing a clause to prevent private financial profit, or may include purposes that are not charitable. Or, the charity's activities may not match their written purposes, or may not be charitable.
We also send this letter when we have found a problem with the name of the entity applying for registration – for example, if it has the same name as another (already-registered) charity.
A notice that may lead to decline gives the charity at least 20 working days to reply.
The charity can reply to us by email or by post. The reply could be a commitment to amend the rules by a certain date. It might be a detailed submission explaining how the purposes are charitable, including supporting evidence such as an annual report, financial report, newsletter, or pages from a website.
We encourage people to contact the analyst named in the letter if they are not sure what to do.
If we don't get a response by the deadline specified in the letter, our analyst will make a decision without the benefit of the extra information requested.
4. Notice of decline
We send this letter when an application for registration has been declined.
It includes the reasons for our decision not to register the charity, and refers to the charity's right to appeal to the High Court under section 59 of the Charities Act.
We don't ask for a response to this letter.
Letters in relation to complaints, investigations, monitoring reviews and removals from the Register
We use four formal letters in relation to complaints we receive, investigations into a charity, a monitoring review or if we intend to remove a charity from the Register. They are called a:
- Section 50 letter
- Section 51 letter
- Notice of intention to remove
- Notice of removal
We explain more about each of these letters below.
1. Section 50 letter
This letter refers to section 50 of the Charities Act, which says Charities Services "may examine and inquire" into a charity or its people.
We send this letter if we receive a complaint about a charity or someone involved with it. We also send this letter if we open an investigation into a charity.
A section 50 letter usually asks detailed or specific questions about the matters of concern and gives the charity 20 working days to reply.
The charity can reply by email or by post. Its reply might be an itemised list of answers to our questions. It is important to answer all Charities Services's questions. The reply could include supporting evidence such as minutes of a meeting, copies of correspondence, property documents, financial records, newsletters and pages from a website.
We encourage people to contact the analyst named in the letter if they are not sure what to do.
If we don't get a response, or if some of our questions have not been answered, our analyst will send a follow up letter, possibly a section 51 letter (see next).
2. Section 51 letter
The letter refers to section 51 of the Charities Act, which says Charities Services "may require" a person to respond to a request for information that relates to Charities Services's functions.
We send this letter if we have not received a response to a section 50 letter (see previous column) or if a charity has not responded to our requests for information as part of a monitoring review.
A section 51 letter gives the charity 20 working days to reply.
The charity can reply by email or by post. It is important that it supplies the missing material to avoid further compliance action.
We encourage people to contact the analyst named in the letter if they are not sure what to do.
If we don't get a response, our analyst will move to the next stage of compliance action (see below).
3. Notice of intention to remove
The letter refers to section 32 of the Charities Act, which outlines the grounds on which Charities Services may remove a charity from the Register.
We send this letter if we have received information that raises questions about a charity's qualification to remain on the Charities Register.
The letter explains why we are considering deregistration, and what the charity can do to avoid it. We might be considering removing the charity from the Register because it:
- has not responded to our requests for information
- has not filed an Annual Return (including financial accounts)
- has been engaged in serious wrongdoing, or
- is no longer qualified for registration under section 13 of the Charities Act.
A notice of intention to remove gives the charity 20 working days to reply.
The charity can reply by email or by post. Its reply could supply the missing Annual Return, financial accounts or information requested. It might be a detailed submission explaining why the purposes and activities of the charity are charitable. It could include supporting evidence such as an annual report, financial report, newsletter or pages from a website.
It is important to give us the material we have requested, to avoid further compliance action.
We encourage people to contact the analyst named in the letter if they are not sure what to do.
If we don't get a response, our analyst will move to the next stage of compliance action.
4. Notice of removal
We send this letter when we have decided to deregister a charity.
The charity will be removed from the Register 20 working days after the date of the letter if they lodged an objection. Otherwise, it will be removed on the date of the notice of removal.
The letter attaches the reasons for our decision and refers to the charity's right to appeal to the High Court under section 59 of the Charities Act.
We don't ask for a response to this letter.
Summary
- Charities Services uses a series of standard formal letters (sometimes called notices) as part of its work.
- These letters are formal because they are part of a legal process authorised by the Charities Act 2005.
- Some formal letters ask for more information to help us make decisions about your charity.
- Some formal letters let you know about decisions we have made about your charity.
- If you receive one of our formal letters and you don't understand what it means or what you should do in response to it, you should contact the analyst named in the letter.
