The Charity Commission, the independent regulator of charities in England and Wales, has launched a consultation on a number of proposals for changes to the Annual Return for 2015.
The announcement follows previous consultations in 2012 and 2013, when the regulator reviewed the information it collects and makes publicly available from registered charities, through the Annual Return and at registration. The findings of the consultations helped inform changes to the content of the Annual Return for 2013 and 2014.
The Charity Commission says it has continued to focus on what information it needs to collect to support its regulatory work effectively, and has developed a number of proposals for changes to the annual return for 2015, including some additional questions.
The Commission says that the consultation is launching now so that any decisions made that affect the content of the annual return, and the regulator’s online support for it, are made in time for the Annual Return 2015.
Requiring charities with incomes between £10,000 and £500,000 to provide key financial information
At present, only charities with an income of more than £500,000 are required to provide more detailed financial information through the annual return. This information is shown on the charity’s register page through graphs and pie charts. For those charities with an income of between £10,000 and £500,000, there is little information shown on the charity’s register entry. By collecting key financial information in an electronic format, the Commission says it will be able to analyse data and identify risks in charities, and increase transparency and accountability.
The regulator proposes to ask charities with an income of between £10,000 and £500,000, and all CIOs with an income under £500,0001, to provide the following information:
• Voluntary income
• Income from investments
• Remaining income not analysed elsewhere
• Total income
• Spending on charitable activities
• Spending on raised funds
• Remaining spending not analysed
• Total spending
Campaigning activity and income
The Commission is also consulting on the following two proposed questions:
• How much of your charity’s total expenditure has been on campaigning activities?
• How much of your charity’s income was received from a) public service delivery b) private donations?
The regulator believes that this information will help improve the accountability and transparency of charities and respond to increased public appetite for information, enabling donors to access detailed information on where charity’s funds are received from, and spent.
Encouraging good practice
The Commission is also proposing the addition of the following questions to the Annual Return for 2015 to encourage good practice and to promote openness and transparency:
• Whether or not charities have a remuneration policy for paying their executive staff.
• Whether or not a charity has carried out a review of its financial controls during the reporting year.
For further information and to take part in the consultation, visit: www.charitycommission.gov.uk/about-the-commission/our-research/our-consultations/annual-return-for-2015-information-collected-from-charities/ by Tuesday 12 August 2014.