New charity reporting requirements for 2014 to provide more comprehensive information for the Register of Charities

Following the recommendations made by Lord Hodgson in his review, the Charity Commission has announced that, from 2014, large charities will no longer be required to fill in a Summary Information Return. Instead, the Annual Return, completed by all charities with an income over £10k, will be expanded to ask the following additional information which will then be displayed on the register of charities:

• Whether the charity raises funds from the public;
• Whether the charity works with a Commercial Participator and, if so, whether a written agreement is in place;
• Whether the charity has a trading subsidiary;
• Whether the charity’s main activity is grant-making;
• Whether the charity has any of the following written policies in place:
  • • Risk management;
    • Investment;
    • Safeguarding vulnerable beneficiaries;
    • Conflicts of interest;
    • Volunteer management; and
    • Complaints.
• Whether the charity is regulated by or registered with any other body;
• Whether the charity pays any of its trustees; and
• Whether the charity’s accounts have been qualified by its auditors.

On this form there will also be a text box (optional) for charities to state what they have achieved over the previous year. The Charity Commission will also add the following additional information to the register of charities from 2014:

• Whether the charity is a member of the Fund Raising Standards Board;
• Whether the charity was formed by a merger;
• Whether the charity is a company limited by guarantee, CIO, trust or unincorporated association;
• Whether the charity is insolvent or in administration; and
• Whether the charity is subject to Charity Commission enforcement for non-submission of its accounts for over six months.

IBB Solicitors’ specialist Charities team has a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. For advice, contact a charity lawyer. Call us on 01895 207809 or email charities@ibblaw.co.uk.