by Lucy Wood TEP, Private Client Partner at B P Collins LLP
Starting 1st January 2025, the Charities (Annual Return) Regulations 2024 have come into effect. The regulations which prescribe the required content in a charity’s annual return have been updated.
All registered charities must submit a return, though the number of questions to answer depends on factors like the charity’s type, income level, and activities. The goal of these updates is to streamline the reporting process, reducing the burden on charities. In general, the higher the charity’s income, the more detailed the reporting requirements.
These regulations aim to enhance transparency and accountability across the charity sector, ensuring that charity trustees provide consistent and accurate data about their operations.
All charities with an income over £25,000 are required to submit an updated annual return to the Charity Commission. Some of the areas you may be asked to report on include:
- financial information, like income and spending
- income or contracts from central government or local authorities
- money provided by the government’s furlough programme, which must be declared individually as ‘income from government grants’
- income from or work done outside the UK
- trading subsidiaries
- trustee payments
- staff salary bands and benefits
For charities whose main purpose is grant making, additional information is required about the value of grants allocated, specifically the number given to individuals, charities and other organisations, as well as whether any grant recipients are connected parties.
While many of the questions remain unchanged from the 2023 updates, it is important for charities to review and familiarise themselves with the new regulations in preparation for their 2025 annual return.
For full details, including the list of questions, visit the Government’s website: The Charities (Annual Return) Regulations 2024 – GOV.UK
