Charity Commission 2023 Annual Return Service Now Live - What you need to know
Oct 16
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Tim Wyatt
From October 2023, the Charity Commission has launched the new annual return for charities with a financial year ending in 2023. This means that if your charity has already completed its accounts for 2023, you can now upload them on the new Charity Commission online services account with the updated annual return questions. In this guide, we'll walk you through some of the key changes (including increased number of questions), provide insights, and offer some top tips to ensure a smooth submission process.
What you need to know
In this short video presentation Tim outlines some of the key points to note about the changes to the 2023 annual submission.
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Who, What, Why, and What Else?
The "Who, What, Why, and What Else" Theme: Navigating the New Questions
One of the most significant changes in the updated annual return for charities with a year ending in 2023 is the introduction of a structured questioning theme using "Who, What, Why, and What Else."
This theme aims to collect important information that helps the Charity Commission and the charitable sector gain deeper insights into a charity's operations and activities.
What sections are included?
Depending on the size of your charity you will need to complete the following sections: 1. Income
2. Spend
3. Activities outside of the United Kingdom
4. Trading subsidiaries
5. Charity addresses and property
6. Structure and membership
7. Employees and volunteers
8. Governance
9. Safeguarding and risk
Top tips in preparing to submit your annual return
1. Start Early:
Begin the process well in advance of the submission deadline. Gather all necessary financial information, documentation, and relevant reports early. A proactive approach ensures that you have ample time to address any unexpected challenges that may arise during the preparation.
2. Review Policies and Procedures:
Take a close look at your charity's policies and procedures, especially those related to governance, safeguarding, and financial controls. Ensure that these policies are up to date, comprehensive, and reflect the current state of your organization. If you identify any gaps or outdated information, consider revising and strengthening these policies before submission.
3. Accuracy is Key:
Accuracy is paramount when preparing your annual return. Double-check all financial figures and data entries. Mistakes can lead to discrepancies and potential issues down the line. Review your records, financial statements, and reports meticulously to ensure everything aligns with the information you plan to submit.
4. Seek Professional Guidance:
Consider seeking advice from charity accountants or financial consultants. These professionals have the expertise to guide you through the complex process of completing your annual return accurately and in compliance with the latest regulations. Their assistance can help ensure a smooth and error-free submission.
5. Stay Informed:
Stay up to date with any updates or changes in charity regulations and guidelines. The rules governing annual returns may evolve, and it's crucial to remain aware of these changes. Regularly check the Charity Commission's website or subscribe to relevant newsletters to stay informed about any new requirements or guidance documents.
What are some important changes I need to be aware of?
For those who have completed an annual return before, many of the sections are very similar with a few more specific questions.
However there are a few we would like to highlight that have seen an increase in the detail that is being requested which we have outline here:
8. Governance The Charity Commission asks charities about their policies and procedures in place at the end of the financial period. The listed policies include internal financial controls, safeguarding, financial reserves, complaints, serious incident reporting, risk management, trustee expenses, conflicts of interest, investing charity funds, campaigns and political activity, bullying and harassment, social media, and engaging external speakers.
The Commission expects most charities to have policies on:
Other policies may be appropriate depending on the charity's size, nature, and activities. This information helps the Commission fulfil its role of promoting better administration of charities.
Recommendation Review that policies your charity requires and check to make sure they are in place and have a regular review date.
9. Safeguarding and risk Safeguarding and risk: The Charity Commission is asking charities if they have provided services to children and/or adults at risk. They define a child as any person under 18 and an adult at risk as someone over 18 who has care and support needs, is experiencing or at risk of abuse or neglect, and is unable to protect themselves. This information will help the Commission target charities with higher safeguarding risk and provide guidance.
DBS Checks: Charities are asked if they have obtained the required level of DBS checks (Disclosure and Barring Service) for eligible roles. The options include Standard DBS checks, Enhanced DBS checks, Enhanced with Barred List(s) DBS checks, or if DBS checks are not required other than Basic DBS checks. Charities should use the DBS Eligibility tool to determine the required level of DBS check.
Serious Incidents: Charities are required to report all serious incidents they become aware of during the financial period to the Charity Commission. This reporting obligation applies to charities with a gross income over £25,000. The Commission provides guidance on reporting serious incidents, and charities should notify the Commission immediately if any serious incidents have occurred since their last annual return.
External risk and impact: Charities are asked if any external events have had an impact on their organization during the financial period. They are required to indicate the estimated positive or negative impact on various aspects such as donations, income, expenditure, number of volunteers, employees, trustees, fundraising activities, capacity to deliver services, and total service demand. This question is included in exceptional circumstances, such as the COVID-19 pandemic, to understand the impact of external events on the charitable sector and help the Commission provide targeted interventions and support.
More guidance to help you prepare
The Charity Commission have made available a full guidance section on their website to help aid individuals complete the annual return.
