Custodian Trust Administration

The Leeds Diocesan Board of Finance (LDBF) acts as custodian trustee for many trust funds under the authority of:

  • The Parochial Church Councils (Powers) Measure 1956, and
  • The Incumbents and Churchwardens (Trusts) Measure 1964.

What is a Custodian Trustee?

The LDBF serves as custodian trustee for many charitable funds where parochial church councils (PCCs) or other local church bodies act as the managing trustees. This arrangement ensures that while the LDBF holds the legal title to the trust assets, the PCC retains responsibility for how the funds are used.

Managing trustees are responsible for:

  • Deciding how the trust’s income should be used
  • Ensuring the use aligns with the trust’s charitable purposes
  • Providing lawful instructions to the LDBF

The LDBF, as custodian trustee, is responsible for:

  • Holding and safeguarding the trust assets (often investment shares)
  • Administering the funds in accordance with the trust’s terms
  • Ensuring that any expenditure is consistent with the trust deed or governing document

Permanent Endowments

In many cases, the trust assets include permanent endowments—investments where only the income may be spent, and the capital must be preserved. Under Section 6 of the 1956 Measure (as amended), where the purposes are ecclesiastical, the LDBF is required to hold these assets as custodian trustee.

Annual Statements

The LDBF sends annual investment statements to the PCC treasurer listed on the Church of England’s Contact Management System (CMS). Please ensure your CMS records are up to date to avoid delays or missed communications.

Need to Access or Use Your Trust Funds?

If your PCC wishes to spend income from a trust, request a capital release (where permitted), or make changes to how a fund is used—or for any other queries relating to custodian trusts—please contact jennifer.robinson@leeds.anglican.org

Further Information

For more information about funds please visit our PCC Funds page

You can also download our guide for clergy and licensed lay workers, which outlines the range of charitable trusts available and how to apply:

 

A Guide for Clergy and Licensed Lay Workers'

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