Charitable Status of Independent Schools
OSCR published its report on Phase 1(a) of its Rolling Review of Charities on 28 October 2008, along with revised guidance on Meeting the Charity Test. Thirty charities were reviewed and it is important to understand that none of them has failed the charity test outright. Seven have been issued with directions to amend the wording of their constitutions and four independent schools have been directed to produce, within 12 months, a plan as to how they will extend entry to those unable to pay fees, and to implement the plan within a further two years.
It is clear from the report that the main factors contributing to OSCR’s directions to the four schools are:
The level of fees charged are considered to be high and, accordingly, a higher level of bursaries than might otherwise be the case is required
The proportion of pupils receiving means tested awards is considered to be too low
The proportion of the schools income dedicated to providing means tested assistance is also thought to be too low
It is interesting to note that provision of services to the public and public access to the schools facilities seem to have borne less heavily on OSCR’s thinking.
OSCR will begin the next phase of the Rolling Review from December 2008. This will assess further “priority” charities, including independent schools. It will run until Spring 2011. OSCR has said that it will no longer publish detailed reports on the Rolling Review, nor announce results in groups, but that it will produce individual or thematic studies only where significant items of interest arise.
Further information
If you would like further information in relation to OSCR’s Rolling Review, please contact our Head of Charities, Anne Swarbrick, or Victoria J W Simpson.
This bulletin is for general information only and does not constitute legal, investment or other professional advice. Please contact us should you require advice on any particular legal issue. Anderson Strathern LLP accepts no responsibility for any loss that may arise if reliance is placed on any information or opinions expressed in this bulletin.
