c. Council as Custodian Trustee

The role of a custodian trustee is very limited.  The legal title to the charity's property is vested in the Council, and it has custody of all documents relating to the property. 

The charity property should be listed in the council’s assets register but with nil value. Responsibility for insurance of the charity property falls on the managing trustees. 

The custodian trustee has no power to manage the property and no role in the administration of the charity. This is carried out by the management committee. Pursuant to s.4(2) of the Public Trustee Act 1906, a custodian trustee must be careful to ensure that the managing trustees of the charity only are responsible for the day-to-day management of the charity. The custodian trustee can only assist the managing trustees - it cannot have any management responsibilities itself.  

Often disputes arise between the Council and the management trustees in respect of the running of the charity. NALC’S advice in such circumstances is limited to ensuring that custodian trustees comply with their duties to hold charity property and to keep documents safe (e.g. usually by keeping them with other council deeds). The custodian trustees are not able to intervene, unless it could show, for example, serious abuse of charitable assets. In this case they may refer the matter to the Charity Commission. The Council is advised that only serious and actual misconduct will be considered and investigated by the Charity Commission, and not perceived issues or minor complaints about management. 

Any complaints or concerns received from parishioners should be referred to the management committee for consideration and action.