Supporting Parish Financial Stewardship
Every PCC is legally responsible for managing its parish’s finances with transparency, accountability, and care. This page provides guidance, resources, and support to help you meet your financial responsibilities confidently.
Legal Framework
PCCs operate within a well-established legal and regulatory framework that ensures church funds are managed responsibly and transparently. Understanding these key legal documents and guidelines is essential for fulfilling your duties as a charity trustee and maintaining public trust. Below are the primary sources of authority and guidance that govern PCC financial responsibilities:
- The Parochial Church Councils (Powers) Measure 1956
Defines the PCC’s duty to promote the mission of the Church in the parish. - The Charities Act 2011
Requires PCCs to act as charity trustees, ensuring proper use of charitable funds. - Charity Commission Guidance
PCCs must follow the Charity Commission’s rules for financial reporting and governance. - SORP (Statement of Recommended Practice)
PCCs must prepare accounts in line with SORP, ensuring consistency and transparency. - Church Representation Rules (2025 Edition)
Outlines governance structures and responsibilities for PCCs and other church bodies.
What PCCs Must Do
As charity trustees, PCC members have a legal and ethical responsibility to manage church finances with diligence and care. The following tasks outline the core duties that must be completed to ensure compliance with charity law and good stewardship practices.
- Maintain accurate financial records.
Keep detailed records of all income and expenditure, including receipts and invoices. - Prepare annual accounts and reports.
These should be clear, complete, and in line with SORP guidelines. - Submit returns to the Charity Commission (if income exceeds £100,000).
Ensure timely submission to avoid penalties. - Ensure transparency with parishioners and donors.
Regularly update the congregation on financial matters. - Keep records for at least 6 years.
This is important for legal and audit purposes.
Understanding Church Funds
PCCs receive different types of income, and each must be handled according to its purpose. Some funds can be used freely, while others are legally or ethically restricted. The table below outlines the three main categories of church funds and how they should be managed. For guidance on repurposing funds please visit our PCC Funds page.
| Fund Type | Description |
|---|---|
| Unrestricted | Can be used for any PCC-approved purpose. |
| Restricted | Must be used for a specific purpose, as defined by the donor or fundraiser. |
| Endowment | Capital must be preserved; only income may be spent. |
Example: A donation for “roof repairs” is a restricted fund and must be used only for that purpose.
Resources & Templates
To support your financial administration, we’ve compiled a selection of practical tools and templates. These resources are designed to simplify reporting, improve accuracy, and help you meet your legal obligations with confidence.
- Gift Aid Claim Form (Charities Online)
- Income & Expenditure Spreadsheet Template - Produced by WYCAS, if you are a parish outside of West Yorkshire and require support please contact us on the details below.
- Annual Report and Accounts Template
- Independent Examiner's Statement
- PCC Accountability (5th Edition PDF)
Need Help?
There are a number of training courses available, including both free options and those with a small fee:
- Free online training sessions on a range of topics from WYCAS (West Yorkshire Community Accounting Services)
- Training from £10pp on a range of topics provided by ACAT (Association of Church Accountants and Treasurers)
- 1 to 1 sessions with our Parish Support Accountant, bookable via this link
For additional support or questions, please contact:
Jennifer Robinson
Parish Support Accountant
jennifer.robinson@leeds.anglican.org