Church Buildings
Why do churches use trust companies?
Churches are not allowed by law to hold property in their own name. They can appoint a minimum of four private trustees, who have the responsibility of ensuring that both the church's Trust Deeds and the Charities Act are complied with.
Finding volunteers with the qualifications and experience necessary for this role became a problem for Baptist Churches as far back as 1891. In that year the Baptist Union Corporation was formed, which would take on this legal role on behalf of churches. Several regional trust companies were founded in the years that followed, including the forerunners of the two trust companies which now serve the WEBA region and operate from the WEBA office: West of England Baptist Trust Company (East) Ltd, and West of England Baptist Trust Company (West) Ltd.
What do they do?
These two companies hold the property deeds of most WEBA churches. They are funded entirely by fees taken for some of the services they provide, such as the buying or selling of church property, and investment services for churches. Churches who use the WEBA Trust Companies benefit from the considerable experience and expertise of the Trust Company Board members, in addition to a local and personal service. We are able, for example, to visit churches in person far more often than the Baptist Union Corporation could ever hope to do.
Over time the role of all the Trust Corporations has developed into that of assisting churches in their mission by advising them in legal, property, trust, charity, and other practical matters, and offering help with complex property transactions and redevelopments. There is a high degree of co-operation between the regional trust corporations and the Baptist Union Corporation, and an annual twenty four hour consultation where matters of mutual interest can be discussed.
The responsibilities of the West of England Baptist Trust Companies are as follows:
Trusteeship of property held on behalf of churches and the Association including custody of property deeds
Property sales, purchases, and letting on behalf of churches
Sale or redevelopment of chapels and other property following a church closure and the distribution of the proceeds in accordance with the ultimate trust
Considering and approving plans for development or alterations to property, including liaison with the BU Listed Buildings Advisory Committee when necessary
Quinquennial surveys of church property
Investment of trust funds held on behalf of churches
Liaison with Association Solicitors and other professional advisers in providing advice to churches on property, trust, and other related matters
Liaison with the Baptist Union Corporation and other Baptist Trust Corporations
The Company Secretary and Trust Manager for both companies is Mr Geoff Starling, who works from the WEBA Office alongside his role as Association Administrator. Working with him are the Board of Trustees, whose names and contact details are published annually in the WEBA Directory.
Why are there so many different kinds of trustees?
There are basically two different types of church trustee.
Those who hold the legal title to church land and property, such as the West of England Baptist Trust Companies, the Baptist Union Corporation, or private church trustees, are called Holding Trustees, Church Trustees, Property Trustees or Custodian Trustees.
Churches also need Managing Trustees, who can also be called Charity Trustees. They are responsible for the day to day management of the local church, or a related charity.
The Managing Trustees are usually the church's minister, deacons, and elders, or its leadership team. You can find out more about what being a Managing Trustee involves by downloading BUC Guidelines C17 from the BUGB website:
Why would my church contact the Trust Companies?
Churches need to inform the Trust Manager of any sales, purchases or letting of church property or of building works or alterations they are planning at an early stage in the process, or of any other changes which may impinge on the church's Trust Deeds.
This is important because the Trust Companies, who are the Holding Trustees, and not the Managing Trustees, are legally responsible for ensuring that the Trust Deeds and all aspects of Charity Law are adhered to.
The Trust Manager always prefers to be consulted sooner rather than later. Experience has shown that his involvement in proposals as soon as they are 'just a twinkle in the eye' can often avoid subsequent pitfalls!
