The Charity Commission has announced upcoming changes to the annual return that charities use to report their activities. The changes are expected to come into force when charities complete their return for 2015, at the end of the financial year.
Government statistics show that over six million people every year in the UK search for and find charities’ details online – making the annual return an essential process in ensuring a charity’s details are up-to-date and accurate. It includes information that informs potential donators what the charity is set up to do and how it can be contacted.
The revised annual return will include three new questions, asking charities about their earnings and grants from Government, their policy on paying staff, and whether they have reviewed their controls to reduce the risk of financial loss.
The changes will be part of wider measures to reduce deception and dishonesty within charities, and provider a clearer framework for charities to follow to help detect criminal activity.
In the run up to the changes, charities were invited to a full consultation, in which they were able to voice concerns about the proposed changes to the annual return.
The Commission has said the changes are being introduced to make charities more accountable for their actions, and to allow risks to be identified more easily.
Paula Sussex, Chief Executive of the Charity Commission, said: “The public rightly expects charities to be accountable and transparent. They also expect us to regulate effectively and to use the tools at our disposal to do so. This additional information will help achieve both aims.”
At Nicklin, our extensive work with charities allows us to stay up-to-date with the latest changes within the sector, from financing to regulatory compliance. For more information on how we can help you, please contact us.