Regulator launches ‘proportionate’ annual return

Charity

The Charity Commission has launched its new annual return for 2023, with changes made to ease “unnecessary burden for charities”.

All charities with an annual income of £10,000 or more must complete the online document within 10 months of the end of their financial reporting period.

The update includes a revised question set, which will be used by charities for their financial years ending in 2023 and in subsequent years, the commission said. 

The regulator conducted a 12-week public consultation last year which received 456 responses and highlighted key concerns, including the time taken to complete questions, an unnecessary burden for charities in preparing data and the impact on small charities.

In response, the commission said it had reduced the complexity of questions in the return, improved guidance to increase understanding and accuracy of the data collected and introduced income thresholds for certain questions so that smaller charities have fewer to answer.

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 choices 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.”

The updated question set has been available for charities to review since December 2022.

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