Q3. Why does the Charity Commission not currently receive cy-près applications and make schemes?

Q4. When will the Charity Commission have the authority to receive cy-près applications and make schemes?

Q5. Will the Department for Social Development and the High Court continue with cy-près once the Commission has the power to make schemes?

Q6. Why would an organisation choose to apply to the Charity Commission to have a cy-près scheme made rather than apply to the High Court?

Q7. Why is the Charity Commission asking for details of potential cy-près cases now?

Q8. What should you do if you have a cy-près application or require further information?

Cy-près is a term drawn from Norman French and means "as near as possible". Cy-près is used in charity law because sometimes the circumstances of charities change so that it is impossible or impracticable for their original objects to be met. In this context the application of property by way of cy-près is the means by which charity assets can be held to meet new objects as near as possible to the original objects.

So if, for example, someone leaves a gift in a will to a named organisation and that organisation has closed by the time the gifts from the will are distributed, a scheme could be made passing the gift to a different organisation which would apply it to similar objects.

A cy-près scheme is the actual legal document which provides for the transfer of an asset intended for one charitable object to another. The person or organisation holding the assets can make an application to have the funds applied through a cy-près scheme. Below are two examples of where a cy-près scheme may be made:

In 2010 the affairs of Mr Robinson were administered after his death. The will included a gift of £25,000 to a particular cats home. The executors soon realised that the cats home had closed ten years ago following the death of its founder. Rather than allowing the gift to fail the executors would instead make a cy-près application. The application would attempt to redirect the £25,000 gift to another charity organisation or group which has similar objects to those of the cats home.

A chain of coffee shops raised £3,700 for a suicide awareness charity through collection boxes stationed in fifteen of its franchises. When the charity was contacted to organise the transfer of the money, it was discovered that it had been wound up some months ago. The coffee shop chain would make a cy-près application, enabling the transfer of the £3,700 to an organisation doing similar work in the area of suicide awareness.

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.

Following on from an advanced notification exercise carried out in early 2012, the Commission has reviewed the responses received and and as a result are considering commencing further sections of the Act along with cy-pres, which will allow some charities to change their governing documents themselves. Our website will provide regular updates on exact timescales and further information as the year progresses.

The High Court will continue to have authority to make cy-près schemes alongside the Charity Commission.

The Department for Social Development will continue however to process and finalise the cy-près applications that they have already received.

The Commission will not charge a fee for processing cy-près applications, leaving more funds to be applied to the recipient charity. The Commission will however require that expenses incurred during the course of the application are paid from the fund or asset transferring.

Expenses incurred might include, for example, surveying fees if land or property is to be valued or advertising costs if schemes are to be publically advertised.

High Court cy-près applications will usually prove more costly due to High Court costs; these costs can also be deducted from the fund to be applied for charitable purposes.

Ultimately the decision on whether to apply to the Charity Commission or the High Court will rest with the organisation/individuals that hold the property.

The Charity Commission can provide advice to you on next steps if you think that you have a cy-près application. The Commission hopes to begin to process cy-près applications in Spring 2012 but can give you advice and guidance in the interim.

The best way to contact us in relation to cy-près is through the email address casework@charitycommissionni.org.uk or by calling 028 3832 0220/TextPhone 028 3834 7639

Individual contacts are: Kevin Kennedy, Charity Commission Casework Manager on kevin.kennedy@charitycommissionni.org.uk or on 028 3832 0220/TextPhone 028 3834 7639; or