—(1) This section shall apply to a charity if —
it has a permanent endowment which does not consist of or comprise any land; and
its gross income in its last financial year did not exceed $5,000,
and it is neither an exempt charity nor a charitable company.
(2) Where the governing board members of a charity to which this section applies are of the opinion that the property of the charity is too small, in relation to its purposes, for any useful purpose to be achieved by the expenditure of income alone, they may resolve for the purposes of this section that the charity ought to be freed from the restrictions with respect to expenditure of capital to which its permanent endowment is subject.
(3) Any resolution passed under subsection (2) must be passed by a majority of not less than two-thirds of such governing board members present and voting on the resolution.
(4) Before passing such a resolution, the governing board members must consider whether any reasonable possibility exists of effecting a transfer or division of all the charity’s property under section 19 (disregarding any such transfer or division as would, in their opinion, impose on the charity an unacceptable burden of costs).
(5) Where governing board members have passed a resolution under subsection (2), they shall —
give public notice of the resolution in such manner as they think reasonable in the circumstances; and
send a copy of the resolution to the Commissioner, together with a statement of their reasons for passing it.
(6) The Commissioner may, when considering the resolution, require the governing board members to provide additional information or explanation —
as to the circumstances in and by reference to which they have determined to act under this section; or
relating to their compliance with this section in connection with the resolution,
and the Commissioner shall take into account any representations made to him by persons appearing to him to be interested in the charity where those representations are made within the period of 6 weeks beginning with the date when the Commissioner receives a copy of the resolution by virtue of subsection (5)(b).
(7) Where the Commissioner has so received a copy of a resolution from any governing board members and it appears to him that they have complied with this section in connection with the resolution, the Commissioner shall, within the period of 3 months beginning with the date when he receives the copy of the resolution, notify them in writing either —
that the Commissioner concurs with the resolution; or
that he does not concur with it.
(8) Where the Commissioner so notifies his concurrence with the resolution, the governing board members shall have, as from such date as may be specified in the notification, power by virtue of this section to expend any property of the charity without regard to any such restrictions as are mentioned in subsection (2).
(9) The Minister may by order amend subsection (1)(b) by substituting a different sum for the sum for the time being specified therein.
(10) A charity shall be deemed for the purposes of this section to have a permanent endowment unless all property held for the purposes of the charity may be expended for those purposes without distinction between capital and income, and in this section “permanent endowment” means, in relation to any charity, property held subject to a restriction on its being expended for the purposes of the charity.
[UK Charities Act 1993, s. 75]