We were also concerned that the letter gave the impression that a potential owner, be they a private company or school, can take over a committee-run pre-school for free.
By way of clarification, a group cannot be 'taken over' because, under law drawn up the Charity Commission in consultation with voluntary sector childcare providers, charities aren't allowed to pass their charitable assets on to another body which isn't charitable, or to another charity which has substantially different aims. Obviously this is to protect the intent under which the charitable assets were donated.
What can happen is that the existing charity pre-school can dissolve under its constitution and then the private purchaser can set up new provision in its place. The Alliance understands that this is what has actually happened in the case detailed in the letter.
In reality, a potential owner is not allowed to receive the charitable assets of a group - what happens to the assets depends on the original group's dissolution clause. The assets are then redistributed to other charities with similar aims (ie, other pre-schools in the area). Physical assets such as toys or equipment might be sold (at a fair price) to the new owner.
The Charity Commission's guidance on schools and pre-schools was issued in January 2006. Go to http://www.charity-commission.gov.uk/supportingcharities/esi.asp.
Steve Alexander, chief executive, Pre-school Learning Alliance.