Each time a charity disposes of property, whether it is the sale or for leases of over seven years, a Charities Act Report has to be written by a qualified surveyor. This report, also known as a Qualified Surveyors Report (QSR), includes a valuation and a wider commentary of the circumstances that may need to be considered by the charity’s trustees. A Charities Act Report will represent the independent verification that the asset is disposed of in a manner that is in the organisation’s best interests and validate the strategic management of the charity.

Charities Act Report
Before a charity disposes of any interest in property its trustees are required to take valuation advice from a qualified surveyor to ensure that they execute the deal on the best terms that can be reasonably obtained for the charity. Whilst this is the case for a full disposal or a lease over seven years or over, for shorter term leases the requirement is less onerous requiring only a simplified review that does not have to be completed by a qualified surveyor.

Charities Act Reports are required for disposals including:
• Sales
• Leases over seven years
• Granting rights
• Assignment or surrender of leases

Trustees must:
• Obtain and consider a qualified surveyors report
• Advertise the disposal as advised by the surveyor
• Obtain the best terms reasonably attainable that are in the charity’s best interests

Surveyors:
• Must act solely for the charity
• May write the Charities Act Report and act on behalf of the charity with the disposal
• Have valuation experience of the property type and location
• Be a member of Royal Institution of Surveyors (RICS)

A Charities Act Report (Qualified Surveyors Report) will include:
• A valuation
• Most appropriate method of disposal
• Advertising and marketing advice
• Whether to carry out works or repairs ahead of the sale
• Whether to divide the property into parts for disposal

When a Charity purchases a property, whilst not a legal requirement, getting professional support in the form of a Charities Act report is best practice for the same reasons outlined above regarding a disposal.

Rapleys Not for Profit Sector
In addition to the development consultancy and the agency work of the Rapleys Not for Profit sector, we are authors of a great number of Charities Act Reports for many clients. Rapleys are able to maintain the independence and objectivity for each report with a number of qualified surveyors registered as valuers by the RICS, working within the Charities Sector. Our recent register of Charities Act reports has included a variety of subject properties:
• Former charity school
• Vicarage
• Community hall
• Church
• Agricultural land
• Town centre retail outlet

If you require assistance with a Charities Act Report in reference to any of the property types above, please contact Rapleys Partners Graham Smith and Adam Harvey.

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