# £5 million interim funding boost for Charity Commission as it considers charges for larger charities

- Link: https://fundraising.co.uk/2018/01/23/5m-interim-funding-boost-charity-commission-considers-charges-larger-charities/
- Published: 2018-01-23T07:06:14+00:00
- Author: Melanie May

**The Government has awarded the Charity Commission an extra £5m funding a year 
to help it respond to significant increases in demand on its core regulatory functions,
including registration and compliance.**

 

The funding boost is an interim solution however, while the [Charity Commission](https://www.gov.uk/government/organisations/charity-commission)
considers other funding models, such as the mooted charges for larger charities 
on which the Commission has said it expects to launch a formal consultation later
in the year.

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The consultation is expected to ask for views on:

 

 * **The practicalities and implications of a system for charging the largest charities:**
   The details are under consideration by the Commission, but it expects to consult
   on proposals that would see it receiving around £7.5million a year through contributions
   from the 2,000 largest charities on the register, namely those with annual incomes
   of over £5million.** **
 * **The enabling work charities and trustees would like to see the Commission expanding
   or developing**: The Commission will be keen to hear from charities of all sizes
   and types about their current and future needs for support and enabling work 
   from the Commission. This element of the consultation is likely to focus in particular
   on smaller charities. Recent research revealed that 80% of trustees are responsible
   for charities that do not have paid staff; they consequently look to the Commission
   for authoritative advice and guidance on managing their charities effectively
   and efficiently.

 

William Shawcross, Chairman of the Charity Commission, said:

 

> “I am pleased that the additional transitional funding from Government acknowledges
> the unprecedented rise in demand on the Commission’s services in recent years.
> The new money will help us continue to increase the effectiveness of our core 
> regulatory functions in the short term, as we explore longer term solutions.
> “It is right that we consider whether those in the sector with the broadest shoulders
> should make a contribution towards aspects of our work, and I am pleased that 
> we will shortly be publishing a consultation on whether and how we do this. We
> would plan to use these funds to increase and improve the services and support
> we offer and want to encourage charities to step forward and feed in their thoughts.”

 

Sir John Low, Chief Executive of the Charities Aid Foundation, welcomed the funding
announcement too.

 

He said: “It is clear the Charity Commission needs funding to carry out its important
work. We recognise this, but were concerned by recent suggestions that the Government
might seek to siphon off donations given to specific causes and charities, whether
large or small, to pay for regulation; we would consider that a retrograde step.
That is why we recently laid out a range of practical alternatives – including modest
increases in Government support – which would raise much needed funds and help the
Commission achieve its objectives.

 

“As always, we are committed to working with the Commission to help them secure 
the future of the whole charity sector and build the public trust which underpins
so much work for the greater good.”

 

> 2/ The money – equivalent to over 20% of the Charity Commission’s operating budget,
> I reckon – is to help it deal with its core regulatory activity. Not to do new
> work.
> — Karl Wilding @Ka*********@***dn.social (@karlwilding) [January 22, 2018](https://twitter.com/karlwilding/status/955537283935080449?ref_src=twsrc%5Etfw)

 * **[Ex-Charity Commission board member Claire Dove appointed as VCSE sector Crown Representative](https://fundraising.co.uk/2018/02/28/ex-charity-commission-board-member-claire-dove-appointed-vcse-sector-crown-representative/)**(
   28 February 2018)
 * **[Government issues formal response to DCMS Committee on Stowell appointment](https://fundraising.co.uk/2018/03/15/government-issues-formal-response-dcms-committee-stowell-appointment/)**(
   15 March 2018)
 * **[Most large charities unclear on their level of reserves, says Commission](https://fundraising.co.uk/2018/11/22/large-charities-unclear-level-reserves-says-commission/)**(
   22 November 2018)

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