Regulator launches updated ‘proportionate’ Annual Return
Melanie May | 6 October 2023 | News
The Charity Commission’s new Annual Return (AR23) is now available, through the My Charity Commission Account service.
All charities with yearly incomes of £10,000 or more must complete the Annual Return online form within 10 months of the end of their financial reporting period. Charitable incorporated organisations (CIOs) also have to complete it.
The My Charity Commission Account service was made available to users in July, and the updated question set has been available for charities to review since December 2022 following a consultation that ran between June and September 2022. The changes are designed to help the regulator better assess risks facing the sector and support charities’ transparency.
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The changes
New questions have been added to better capture and understand charities’ reliance on certain types of income, along with questions on single sources of funding to gain more information on roles and responsibilities within charities, and to gain a more accurate picture of the geographical areas in which charities operate in England and Wales.
To make the service more user-friendly and easier to navigate, the Commission has also simplified the language of the questions, and the amount of information charities are required to provide varies based on their size and scope.
The Commission also says the questions asking for data on volumes or monetary values have been simplified, so that few now ask for information over and above that collected by charities as part of their normal accounting processes.
Other changes include introducing income thresholds to further questions, rewording questions to improve their clarity, and improving the supporting guidance.
Helen Stephenson, Chief Executive of the Charity Commission said:
“The Annual Return is important; it helps the Commission to identify risks and problems in the sector and it helps the public to make informed choice about charities. The new data we are gathering through AR23 will also support policy-makers, researchers, the sector, and the public to gain a more in-depth understanding of the nature and profile of charities in England and Wales.
“We have worked hard to ensure AR23 is proportionate, ensuring smaller charities do not face an excessive reporting burden. I am grateful to all who took part in last year’s consultation and encourage all charities to complete the return within their reporting deadline.”
According to the Commission, over 105,000 charities have now onboarded to the new system, although some charities have reported issues with signing up. There is guidance to help with the process, and the Commission’s contact centre (0300 066 9197). This is open from 9am-5pm.
The consultation
The Commission received 456 responses to its consultation. 54% thought the proposed question set was proportionate, 22% disagreed and a further 24% were unsure or neutral. 72% respondents felt able to complete financial questions as proposed, however because previous user research has shown this can be an area charities find difficult or time consuming, the Commission has amended the Annual Return for 2023 onwards so trustees can submit figures aligned to those used in account preparation, rather than having to calculate percentages.
November Annual Public Meeting
The Charity Commission’s Annual Public Meeting takes place on Wednesday 15 November, at 11:00am. People can attend in-person in Liverpool or online via a livestream.
The event will see Chair Orlando Fraser, CEO Helen Stephenson and colleagues provide updates into the Commission’s activities and answer questions about the regulator’s work. There will also be an opportunity for in-person attendees to speak to members of staff both before and after the main meeting. Book here.
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.