Charitable Trusts, Bequests and Trust Funds - Distribution Arrangements - Macalister Mortification & Fisher Bequest
Argyll and Bute Council · 4 June 2025
Back to Mid Argyll, Kintyre & the Islands Area Committee — 4 June 2025 and its agenda
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CHARITABLE TRUSTS, BEQUESTS AND TRUST FUNDS – DISTRIBUTION ARRANGEMENTS – MACALISTER MORTIFICATION & FISHER BEQUEST 1.0 EXECUTIVE SUMMARY 1.1 The Mid Argyll, Kintyre and the Islands Area Committee are Trustees for a number of Charitable Trusts, Bequests and Trust Funds. Officers continually seek to simplify and update processes where possible to ensure ongoing compliance with the original terms of the bequests and to reduce the administrative burden of the management and distribution and ensure maximum community benefit. 1.2 There remains a number of challenges, with a number of the funds being established many years ago, and as a consequence of changes in society over time the intended beneficiaries of the bequests are no longer easily identified. 1.3 This paper invites the Trustees to make awards from the Macalister Mortification and the Fisher Bequest. 2.0 RECOMMENDATIONS 2.1 The Mid Argyll, Kintyre and the Islands Area Committee are asked to: 1. agree to award £3850 from the Macalister Mortification to A'Chleit Hall and thereafter place a moratorium on this fund; and 2. agree to award £348 from the Fisher Bequest to Westlochfyneside Foodshare and thereafter place a moratorium on this fund. ARGYLL AND BUTE COUNCIL MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMITTEE LEGAL & REGULATORY SUPPORT 4 JUNE 2025
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CHARITABLE TRUSTS, BEQUESTS AND TRUST FUNDS – DISTRIBUTION ARRANGEMENTS – MACALISTER MORTIFICATION & FISHER BEQUEST 3.0 INTRODUCTION 3.1 The Mid Argyll, Kintyre and the Islands Area Committee are Trustees of 19 Charitable Trusts, Bequests and Trust Funds with an estimated unrestricted balance of around £139K. This report invites Trustees to consider distribution proposals for 2 of these funds, specifically the Macalister Mortification and the Fisher Bequest. 4.0 RECOMMENDATIONS 4.1 The Mid Argyll, Kintyre and the Islands Area Committee are asked to: 1. agree to award £3850 from the Macalister Mortification to A'Chleit Hall and thereafter place a moratorium on this fund; and 2. agree to award £348 from the Fisher Bequest to Westlochfyneside Foodshare and thereafter place a moratorium on this fund. 5.0 BACKGROUND 5.1 Due to the restrictive nature of certain funds there have been difficulties in identifying suitable beneficiaries. Consequently, Officers from Legal and Regulatory Support had been in dialogue with both The Scottish Charity Regulator (OSCR) and Lord Advocates Office in an attempt to establish appropriate methods of distributing these funds, specifically using provisions within the Law Reform (Miscellaneous Provisions)(Scotland) Act 1990 and The Public Trusts (Reorganisation) (Scotland) (No.2) Regulations to transfer the resources to charities and trusts that are better placed to meet the terms of each of the funds. 5.2 Largely as a consequence of the lack of associated documentation of the funds, despite making all reasonable enquiries, it has been extremely problematic to make any progress in this regard. Consequently, officers believe that progress can only now be made by preparing bespoke distribution models for both the Macalister Mortification and the Fisher Bequest. ARGYLL AND BUTE COUNCIL MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMITTEE LEGAL & REGULATORY SUPPORT 4 June 2024
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The Macalister Mortification 5.3 The Macalister Mortification was bequeathed in around 1897 and was to be invested in heritable security for the poor of the parish of Killean and Kilchenzie. As of 01/04/2025 the balance of the Macalister Mortification stands at £4958.25 which comprises of £1100 restricted funds and £3858.25 non-restricted. 5.4 Having taken cognisance of the limited amount of resource available within this fund and the confined geographical location that the funds must be used within, Officers explored organisations that could benefit from this fund. A'Chleit Hall was identified as one such recipient and were invited to submit a proposal for a project that would meet the terms of the fund, specifically that it be invested in heritable security for the poor of the parish of Killean and Kilchenzie 5.5 The scope of the project and those that could benefit from it would be limited to the boundaries of the Parish of Killean and Kilchenzie of which the northern and larger portion is traversed by the valleys of Glenshira and Glenaray, which converge towards the south. 5.6 It is accepted that the project, outlined within the attached application form (please see appendix 1) meets the terms of the trust and that the funds can competently be awarded to A'Chleit Hall to ensure maximum community benefit. 5.7 The application form is for a total amount of £3854, this having been the amount of unrestricted funds that was reported to the Area Committee in December 2024. Since this time the 2024/25 accounts have been submitted and the total unrestricted funds currently available amount is £3858.25. 5.8 Should the Area Committee be minded to award the amount requested the balance of this fund would be £4.25. Consequently, it is recommended that, to lessen the administrative burden and allow interest to be accumulated to ensure maximum community benefit at a later date, that a moratorium be placed on this fund. The Fisher Bequest 5.9 The Fisher Bequest was bequeathed in 1949 and was to be used to support the poor of the parish of Inveraray. As of 01/04/2025 the balance of the Bequest stands at £418.59 which comprises of £50 restricted funds and £368.59. 5.10 In March 2024 the Area Committee agreed that an application be invited from a suitable organisation for a one off project that would meet the terms of the Fisher Bequest and that on submission this proposal be subject to consideration by the Area Committee. 5.11 Following this instruction Officers invited Westlochfyneside Foodshare to consider applying to the Bequest for support. The Foodshare have now submitted an application and are seeking support to secure fuel vouchers for those clients living within the Parish of Inveraray. It is accepted that the project, outlined within the attached application form (please see appendix 2) meets the terms of the trust
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and that a total of £348 can competently be awarded to Westlochfyneside Foodshare. 5.12 Should the Area Committee be minded to award the full amount requested by Westlochfyneside Foodshare, it is thereafter recommended that a moratorium be placed on this fund, leaving a balance of £20. This approach will serve to lessen the administrative burden and allow interest to be accumulated to ensure maximum community benefit at a later date. 6.0 CONCLUSION 6.1 This report has outlined the current position of the Macalister Mortification and Fisher Bequest and requests for support from each of these funds. On approving the recommendations Trustees will provide a clear community benefit while meeting their obligation of ensuring transparent and effective governance. 7.0 IMPLICATIONS 7.1 Policy - Consideration of the questions raised will ensure that the intentions of the original bequests are honoured. 7.2 Financial - None, the Council acts as trustee for the Funds, it does not represent assets of the Council. However, there is a risk that the Council would have to repay each fund if an objection was raised as to the award/use of the funds. 7.3 Legal - Area Committees, as Trustees, must ensure that the distribution arrangements comply with the terms of each fund, failure to do so would result in the Council being liable. 7.4 HR - To proceed with reorganisation, in terms of section 10 or 11 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 would require the allocation of Officer time. 7.5 Fairer Scotland Duty - None 7.5.1 Equalities – protected characteristics – None 7.5.2 Socio-Economic Duty – None 7.5.3 Islands – None 7.6 Climate Change – None 7.7 Risk – If there was an objection raised as to the use of the funds in a particular way, there is a risk that the Council could have to pay the costs themselves and repay the Trust the costs. The level of risk is considered to be acceptable. 7.8 Customer Service – None 7.9 The Rights of the Child (UNCRC) – None
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Douglas Hendry Executive Director with responsibility for Legal & Regulatory Support April 2025 Policy Lead - Councillor Mark Irvine For further information contact: Stuart McLean, Committee Manager, 01436 658717, stuart.mclean@argyll-bute.gov.uk Appendices Appendix 1 – Application form – Macalister Mortification Appendix 2 – Application form – Fisher Bequest