09 January 2023
The Charity Commission launches its new Annual Return in response to charity sector and public feedback.
Sectors:
Charity and Not for profit,
Education
Services:
Supporting our Voluntary, Community & Social Enterprise Sector
Not for profit update : The Charity Commission launches its new Annual Return in response to charity sector and public feedback.
The Annual Return is the online form that all charities with yearly incomes of £10,000 or more complete within 10 months of the end of their financial reporting period. It must also be completed by all those registered as charitable incorporated organisations (CIOs).
The Charity Commission has published an updated set of questions that charities will have to complete as part of their 2023 Annual Return. This is part of the Commission's current strategy to become a more data-driven regulator and ensure a better service to the public and sector.
A number of changes and improvements have been made to the new Annual Return as a result of feedback provided by charities and interested parties during the consultation carried out from the 9th June 2022 to 1st September 2022.
Helen Stephenson, CEO at the Charity Commission, said "these improvements are a key step to improve the data reported by charities, enabling the Commission to better identify risks and problems in the sector, helping the public make informed and confident choices about charities, and allowing policy-makers, researchers, the sector, and the public to gain a richer understanding of the sector in England and Wales."
The changes made to the 2023 Annual Return following the consultation, are:
- A reduction in the maximum number of questions that can be asked of charities to 49.
- The introduction of income thresholds for 5 of the new questions to further reduce the burden for smaller charities.
- 19 questions have been reworded to improve clarity and/or reduce resource and time required of charities where possible.
- Improvements to the guidance provided by the Charity Commission aiming to help charities answer questions faster and more accurately.
Changes do not apply to AR22 and charities should continue to submit these as planned. The full set of questions that will make up the Annual Return for 2023 are published on GOV.UK.
A new guide will be released in January to support charities as they set about compiling the new information required.
Next steps in the process:
January 2023:
The Commission will publish a new guide to assist those looking to complete their Annual Return for financial years ending on or after 1st January 2023.
Spring 2023:
The Commission will be expanding enrolment onto the My Charity Commission Account. Trustees and nominated contacts will, if not already, be invited to create an account on this platform.
Early Summer 2023:
The Annual Return filing portal opens via the My Charity Commission Account platform. Trustees will be expected to submit their Annual Return for 2023 and future Annual Returns through the regulator’s improved digital service.
If you are looking for advice on your charity's audit or accountancy affairs, we offer a comprehensive range of services and have specialist knowledge of the Not-for-Profit and charity sector.
Contact your local Haines Watts office today to find out how we may be able to assist:
Author
James Liptrott
Director
