In certain circumstances, small charities can transfer their permanent endowment assets to another charity, or charities. The term ‘permanent endowment is generally applied to any land, investment or other asset which trustees cannot spend because of a restriction in the charity’s governing document. 

The power to transfer permanent endowment generally applies only to charities that:

• have an annual income of £10,000 or less
• do not have land that has to be used to achieve some or all of the charity’s purposes
• are not charitable companies

Where a charity meets those requirements its trustees can decide to transfer all its property to one or more other charities, provided that they:

• believe that it is in the interests of promoting the purposes of their charity if all its property is transferred to another charity or other charities
• do not have a power in their governing document that lets them make the transfer

You must notify the Commission of your intention to transfer these assets. You can do this using our online form.

See also:

• Manage your charity homepage
• Transfer of property for unincorporated charities (Guidance notes CSD1348A1)
• Spending permanent endowment

Top of page