Changes to the Charity Commission Annual Return
Important Changes and Updates
This year, the Charity Commission changed the requirements for completing your Annual Return as a Registered Charity. These changes are outlined below and apply to charities’ financial years ending on or after 1 January 2023.
An annual return is an online form that all charities with annual incomes of £10,000 or more must complete. This must be done within 10 months of the end of your financial reporting period. The form must also be completed by all those registered as charitable incorporated organisations (CIOs).
These changes aim to improve transparency, accountability, and the effectiveness of the charity sector. Please read this information carefully to ensure that your organisation stays compliant with the updated regulations.
Potential benefits of the changes
The Charity Commission is now asking for more information, which means your annual return will take longer to complete, however there are some potential benefits associated with this:
- It can improve your organisations accountability. Providing more detailed information about your organisation’s mission, activities and impact will help you build up trust not only with current and potential funders but also the public and community you serve.
- It can increase effectiveness within your organisation. The new requirements encourage your charity to have a better understanding of your own operations, consequently allowing you to make better decisions that will improve your impact.
- The Charity Commission can provide the public with a more thorough insight of your organisation’s work, creating increased transparency. This can also expand trust between your charity and the public.
What's new?
The Charity Commission has expanded its reporting requirements to gather a more detailed understanding about your organisation’s activities. This includes detailed financial disclosures, governance structures, and impact assessment data. You should be prepared to provide a more extensive account of your organisation's work.
Impact assessment
In 2023, all registered charities are required to submit an impact assessment alongside their annual returns. This assessment should detail the impact your charity has had on its beneficiaries, the community, and the environment. This is an essential part of demonstrating your organisation's values and effectiveness throughout all your work.
Financial transparency
Charities must provide a clearer breakdown of their income sources, expenses, and assets. It's necessary to present a detailed financial statement to make sure you comply with the updated regulations.
Governance structure
Charities must now provide more precise information about their governance structure. This includes details about trustees, their roles, and any changes that have occurred during the year. The Charity Commission aims to have a better understanding of how your organisation is run and the details of the leadership structure.
No change to return deadline
There is no change to the deadline for annual returns submissions. All charities must submit their annual returns within 10 months of their financial year end date.
How you can prepare
The best thing to do before filling out the form is to be prepared with all the relevant information you need.
Your organisation should ensure that its financial records, governance documents and impact assessment data are all complete and up to date.
In order to avoid a last minute rush, start collecting the information for your annual return now to assure accuracy when filling out your form.
Additionally, ensure that your staff and trustees are aware of the changes and understand how they can help you prepare for the annual return.
More information
For more information, guidance and access to the new annual returns forms, please visit the Charity Commission's official website here.
If you require any further advice, we are always here to help. Please feel free to contact Connected Voice at connect@connectedvoice.or.uk or give us a call on 0191 235 7021.
