Charity Commission: revisions to the Annual Return 2023-25
Applies to England and Wales
Read the full outcome
Detail of outcome
Based on the consultation feedback, we have decided to proceed with changes to the Annual Return. The consultation feedback has allowed us to make significant revisions to the final Annual Return questions. In summary, the main changes are that we:
- will not introduce 5 of the questions proposed in the consultation
- will amend the wording of 13 questions to improve their clarity, and in some cases reduce the data-gathering or input required
- will create income thresholds for 4 of the new questions that we are introducing, to ensure that the regulatory burden on the smallest charities is proportionate
- will remove 6 questions in 2024 where we have identified that it is essential to collect the data in AR23, but alternative means have been identified to collect similar data in the longer term. We will continue to assess the opportunity to remove further questions where other developments allow
- have reviewed all explanatory notes and the glossary for both the existing and new questions to promote consistency and clarity
Annex 8 contains the full list of the revised Annual Return questions that will be set out in the Charities (Annual Return) Regulations 2022 that will come into force on 1 January 2023.
The changes to the Annual Return will apply to charities’ financial years ending on or after 1 January 2023. In early 2023 a guide to the new question set will be released to provide additional details on what we are asking, why we are asking it and how the data we collect will benefit the sector. The revised digital service which charities will use to submit their Annual Return will be released later in 2023.
Detail of feedback received
We received 456 responses. 52% (262) of respondents provided feedback on behalf of a charity, with a further 37% (155) received from trustees sharing their own personal opinion. The other main sub-groups were:
- other person involved in the charity sector (e.g, a professional advisor)
- charity sector representative organisation or umbrella body
- member of the public.
Responses overall were supportive of the Commission’s intentions to revise the Annual Return. The majority felt that the questions proposed were justified with these aims in mind. Most understood why the Commission would collect the data we were proposing to and what we would do with it. There were some exceptions to this, particularly for smaller charities. These were either related to overall proportionality (i.e. time taken to respond to the increased number of questions), or to uncertainty as to what data we wanted because of concerns related to the specific structure, wording or applicability of the questions to each respondents’ circumstances. This feedback allowed us to identify where and how the proposals could be improve, and was acted on as per the Outcome section above.
Original consultation
Consultation description
We are consulting on a new approach to the AR and on updating the questions we ask charities in the AR.
We have developed new questions that would obtain additional data, enabling us to regulate charities more effectively. We cannot obtain this data elsewhere. Most questions proposed here would be asked every year. However, we are consulting on the Commission having flexibility to include or omit certain questions in the AR in each particular year, based on the rationale set out in this consultation.
We are looking to ensure the overall burden on charities is proportionate and have offset the impact of the new questions by removing redundant questions and simplifying those questions we are retaining where possible, to make them clearer and easier to complete.
We want to know whether you:
- agree the set of questions proposed are relevant and proportionate, considering our statutory duties, objectives and functions
- are confident that charities of all types and sizes would be able to understand all questions proposed, and collate the right data
Changes will apply to charities’ financial years starting on or after 1 January 2023.
Scope
This applies to registered charities in England and Wales with income over £10,000 and all charitable incorporated organisations (CIOs).
This consultation does not apply to annual returns prepared by a registered charity that is a common investment fund or a CAIF (charity authorised investment fund). A registered charity that is a common deposit fund established by a common deposit scheme made or having effect as if made under section 100 of the Charities Act 2011 is not required to prepare an annual return.
Who do we want to hear from?
We would welcome responses from the public; charities, their trustees and representative bodies; policymakers; and funders.
How to respond
This consultation will close on 1 September 2022.
Please respond through our online tool.
If you need to supplement your responses with further detail or material, please send it by email to [email protected].
Documents
Updates to this page
Published 9 June 2022Last updated 21 December 2022 + show all updates
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Revisions to the Annual Return 2023-25: consultation response published.
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First published.