What is meant by cy-près
Cy-près is a legal document which transfers a charitable gift from a charitable purpose which cannot be carried out, to another charitable purpose which is as close as possible to the original. For example, where someone leaves money in a will to a named organisation and that organisation has closed since the will was made, a scheme would have to be made to pass the legacy on to an organisation which would apply it for a similar purpose.
The Department for Social Development receives cy-près applications and can currently make a cy-près scheme where the amount of the asset in question does not exceed £50,000. If the amount is greater, the scheme can only be made by the High Court.
The Commission does not yet have the power to receive applications and make cy-près schemes. The Charities Act (Northern Ireland) 2008 gives the Commission authority to make cy-près schemes, but the sections of the Act which do so have not yet been brought into operation.
Cy-près advance notification exercise
The Charity Commission for Northern Ireland is preparing to assume its powers to make cy-près schemes in accordance with sections 26 to 30 of the Charities Act (Northern Ireland) 2008.
Sections 26 to 30 of the Charities Act (NI) 2008 will replace sections 13, 22 and 23 of the Charities Act (Northern Ireland) 1964. Under the 1964 Act, the Department for Social Development (DSD) was empowered to make cy-près schemes where the aggregate value of the property did not exceed £50,000.
One of the effects of the new arrangement is that the Commission can process cases to any value. Organisations will have the option to apply either to the High Court or to the Commission to make a scheme.
The new arrangements will allow organisations to maximise the value of the charitable funds available for distribution by applying to the Commission to make a scheme, rather than go to the High Court. Previously, funds were depleted after deduction of High Court costs.
Since the Charities Act (NI) 2008 was passed, organisations may have been opting to wait for the Commission to take up its powers to make schemes, rather than proceed with expensive High Court schemes. This has meant that schemes awaiting processing may have been accumulating.
Therefore the Commission, in early 2012, carried out an Advanced Notification Exercise in order to gauge the number of potential cy-près cases that have accumulated as organisations have potentially held of applications. The cy-près Advanced Notification Exercise is now finished, with the Charity Commission now working with DSD to plan next steps.
Next steps
We have received the responses to the Advanced Notification Exercise and, as a result, are considering commencing further sections of the Act along with cy-près which will allow some charities to change their governing documents themselves. Thank you if you contributed to the exercise.
In the short to medium term, the Department for Social Development will continue to receive cy-près applications and can make a scheme where the amount of the asset in question does not exceed £50,000. If the amount is greater, the scheme can only be made by the High Court.
Therefore if you have a cy-près scheme, it will be processed, in the first instance, by the Department for Social Development. It is advisable, however, to continue to look on this website for further updates. If you require further information on cy-près or the Advanced Notification Exercise, please contact the Casework Team via the casework email address.
If you would like to make contact with the Charity Commission for Northern Ireland via telephone or TextPhone please see "contacting us".
