Two private schools with registered charitable status have recently failed a public benefit assessment exercise carried out by the Charity Commission. The schools were both deemed not to be spending enough on providing opportunities to people who are unable to afford their fees.
The schools have not lost their registered charitable status as a result of the failure but they will be required to work with the Charity Commission over the next 12 months to agree the changes which will be required in order for the public benefit test to be satisfied.
Of the two schools in question, one spends around 1% of its income on providing two means-tested bursaries for up to 90% of its fees and the other offers no means-tested bursaries at all. The Charity Commission has stated that it is concerned that people in poverty might be excluded from the opportunity to benefit where there is no provision of a means-tested bursary to cover 100% of the school fees.
The Independent Schools Council has complained that the Charity Commission is focusing too much on the provision of means-tested bursaries and not enough on the other benefits that fee-charging schools offer to the wider community, such as the provision of facilities in partnership with local schools and communities. There have also been calls for the Charity Commission to clarify what level of bursary provision is acceptable.
Three other schools passed the test, one of which offers bursaries to approximately 1 in 7 of its pupils, over half of which are bursaries that cover 100% of fees.
In view of the recent assessment exercise, fee-charging schools with charitable status would be wise to review their constitutions, the membership of their governing bodies and their policies regarding the provision of bursaries. In the absence of further guidance from the Charity Commission professional advice may be necessary in order to determine whether or not a school is satisfying the public benefit test.
Further details of the public benefit assessment can be found on the Charity Commission’s website.
For more information or advice, please contact Mark Lewis on 01926 880700.
